[user-on1]

So basically for a person on H1B to startup, can we take below as steps ? Please correct me if i am wrong !

1. A decide's to startup.

2. A find's 2 US citizens B & C as co-founders.

3. A gives idea to B & C and asks them to build a PRODUCT.

4. A takes 49% ownership, B & C takes 25.5 % ownership.

5. B & C finished building a MVP or SLC PRODUCT.

6. B & C apply for VC Fund.

7. B & C get X fund from Z.

8. B & C incorporate a COMPANY.

9. COMPANY sponsors H1B for A and hires A as co-founder.

10. A joins COMPANY.

11. A & B & C continue building their PRODUCT.

12. PRODUCT becomes successful.

13. A applies for STARTUP based Visa.

14. A becomes US Citizen

15. A starts COMPANY B.

Kindly tweak or update to fix any mistake in this process. I think it will be of great help to many and benefit everyone.

[vira28]

Oh wow !! So for giving the idea A takes 49% ownership?!

[sumedh]

> COMPANY sponsors H1B for A and hires A as co-founder.

You cannot be hired as a cofounder you need to be hired as an employee.

[aub3bhat]

"cofounder" is a legally meaningless SV term. There are three ways you can be associated with a company

1. Shareholder (anyone in the world, except few countries with sanctions)

2. On board of directors (varies from case to case)

3. Employee (requires immigration status)

[user-on1]

Can one be hired as a CEO or CTO?

Does that count as an employee?

If one is a software developer at present in current petition can such person transfer his H1B to a role of CTO?

Are there any challenges in this?

[aub3bhat]

A CEO, CTO, CFO, CXO etc. are all "employees", technically an employee is someone who works for the company (unpaid work also counts) the company.

E.g. You can have 100% equity, be sole shareholder, pay money to a manager/employee to conduct work/business. You can even derive a dividend from the said business. however you cannot "engage in business" which means that you cannot write code whose IP gets assigned to the company. You also cannot have day-to-day management responsibilities. If I remember correctly planning a business and/or attending meetings of board of directors is allowed.

At end of the day shareholding pattern trumps everything else.

[user-on1]

100% equity would mean A would have 100% control right?

Then nobody can fire A. Hence 49%.

Can A have 100% ownership and incorporate a COMPANY and then assign BOD to COMPANY Where BOD have control over A but no ownership in company?

In this config can A just hire a employee D and pay him minimum wage according to DOL.

https://www.dol.gov/whd/minwage/america.htm

Would this setup work?

[rajeshp1986]

The problem here is if you are A, then no one will give 49% stake to you because of your idea. This only works on paper but in reality you will get screwed.