On Oct. 3, Leslie eLab welcomed Najia S. Khalid, who leads the Business Immigration practice at Wiggin and Dana LLP to answer one of the most common questions from international students at NYU:
How can international students start a company in the U.S.?
Founding a Business While on an F-1 Student Visa
Although it’s possible to found a business while on an F-1 visa as a passive investor, having the ability to “work” for that business requires a deeper understanding of the activities to be performed on U.S. soil.
There is a key distinction between authorized business activities and unauthorized employment activities — and whether or not the student is paid for those activities is not a determining factor here in the F-1 context.
To stay compliant, F-1 student founders may need to utilize the services of individuals who are authorized to work in the U.S., such as U.S. citizens or permanent residents, if the company needs someone in the U.S. to address day-to-day operations and company management.
F-1 students may engage in the following authorized business activities while in the U.S.:
- Negotiate contracts
- Fundraise or meet with investors
- Attend networking events or pitch competitions
- Build software or prototypes for learning or research purposes
- Demo early versions of a product to potential users in limited, educational contexts
F-1 students may NOT engage in the following unauthorized employment activities while in the U.S.:
- Perform day-to-day operational work
- Run the company by making management or executive decisions that qualify as work duties for a C-Suite officer
- Offer products or services to paying customers
- Handle sales, accounting, or marketing execution
- Perform tasks that typically qualify as work activities for which there is some form 1of remuneration (not necessarily pay).
In essence, F-1 visa holders can lay the foundation for their startup, but not actively operate it until they obtain proper work authorization.
Work and Visa Pathways After F-1
After completing their degree, international students have several short-term pathways to gain experience or continue developing their ventures in the U.S.
Optional Practical Training (OPT) OPT provides up to 12 months of work authorization after graduation, as long as the work is directly related to the student’s field of study. While self-employment is permitted, it can be complex for startup founders if the venture’s focus extends beyond their academic discipline.
STEM OPT offers an additional 24 months for certain science, tech, engineering, or math fields. It requires an E-Verify employer, a formal training plan, and at least 20 paid hours per week under a designated supervisor. Government site visits are also common to ensure compliance.
H-1B Visa Challenges
The H-1B visa remains one of the most sought-after pathways after F-1 or OPT status, but it’s also among the most competitive. Success requires strategic planning and employer sponsorship.
Key challenges include:
- Annual numerical caps: 65,000 visas are available each year, plus 20,000 reserved for advanced U.S. degree holders
- Lottery-based selection: Highly competitive, depending on demand and economic conditions
- Employer sponsorship: The company must be a legitimate, operating business with a tax ID, bank account, payroll, and physical address — simple incorporation is not enough
- Processing timelines: Applications can take months to more than a year, so founders should plan transitions carefully within their OPT or STEM OPT windows
Other Visa Options
While less common, several alternative visa types can support entrepreneurial work:
- O-1 (Individuals with Extraordinary Ability): For founders with major, well-documented achievements such as press coverage, awards, or endorsements from recognized experts
- E-2 (Investor Visa): For citizens of treaty countries who make a substantial personal investment in a U.S. business
- Marriage-based visa: For those in legitimate marriages to U.S. citizens; extensive documentation is required
Final Takeaways
Starting a company as an international student is absolutely possible — it just requires strategic planning, patience, and expert legal guidance. The first step is to understand what is permitted under the current visa and to plan ahead for future transitions to ensure the venture remains compliant as it grows.
It’s important to work with an experienced immigration attorney early and to keep detailed documentation, including bank statements, payroll reports, leases, and tax filings that may support future applications. Together, founders and their legal advisors can build short-, mid-, and long-term visa strategies that evolve with the company’s growth and the changing immigration landscape.
The information in this blog is current as of the Oct. 3 workshop. For more details or to request Wiggin and Dana LLP’s info sheet, email entrepreneur@nyu.edu, or keep an eye out for Leslie eLab’s regular workshops for student visa founders.
