Many YC founders did the same thing. They worked on their own startups with no salary under a student visa, and applied for H1B/O1 visas once they got funding. Is this illegal?
Yes, working on a startup without pay under a student visa (such as F-1) can be legally problematic. While student visas allow some employment (like CPT or OPT for F-1 students), “self-employment” is generally restricted, especially if it involves day-to-day work or responsibilities without proper authorization. Founders may violate visa terms if their role in the startup constitutes “unauthorized employment,” even if unpaid.
For H-1B or O-1 visa applicants, founders need to prove an employer-employee relationship with their startup and show funding or sufficient structure, which complicates the path from student visas.
Sources:
• USCIS Policy Manual on Employment for F-1 Students
• 8 C.F.R. § 214.2(f)
For H-1B or O-1 visa applicants, founders need to prove an employer-employee relationship with their startup and show funding or sufficient structure, which complicates the path from student visas.
Sources: • USCIS Policy Manual on Employment for F-1 Students • 8 C.F.R. § 214.2(f)