Starting a Business in the US as an International Student on F-1 Visa

Introduction

Starting a business is an exciting yet challenging journey that requires careful planning, dedication, and knowledge. Whether you're launching your first venture or expanding an existing idea, the process involves more than just having a great concept. 

Every step builds the foundation for success, from conducting market research to navigating legal and financial requirements. According to the U.S. Small Business Administration (SBA), understanding the essential steps—like creating a business plan, securing funding, and complying with regulations—can significantly increase your chances of turning your dream into a sustainable enterprise. 

You can confidently transform your vision into a thriving business using reliable resources and a step-by-step approach.

In this guide, we’ll walk through the components of starting a business, highlight important legal considerations, and provide insights for both local and international entrepreneurs, including those on starting a company on an F-1 visa.

Understanding The F-1 Visa

The F-1 visa is designed for international students pursuing academic programs in the United States. While its primary focus is education, the visa also provides limited employment opportunities, which can be critical for students seeking practical experience or exploring entrepreneurial ventures within legal boundaries.

According to the U.S. Citizenship and Immigration Services (USCIS), F-1 students can participate in employment opportunities directly related to their field of study, such as Optional Practical Training (OPT) or Curricular Practical Training (CPT). These programs allow students to gain hands-on experience while adhering to visa regulations. Additionally, on-campus employment is permitted under certain conditions.

However, starting a company on an F1 visa or engaging in entrepreneurial activities requires careful consideration of F-1 visa restrictions. As the U.S. Department of State notes, students must ensure their activities align with the visa’s terms and conditions, prioritizing academic pursuits. For international students, starting a company on an F1 visa often requires adhering to these employment authorization guidelines to avoid visa complications.

Understanding the scope and limitations of the F-1 visa is crucial for international students planning their academic and professional journeys, especially those considering starting a company on an F1 visa. By using available resources and consulting with designated school officials (DSOs) or immigration attorneys, students can maximize their opportunities while ensuring compliance with U.S. immigration laws.

Now that you understand what an F-1 visa is, let us learn about the steps involved in starting a business. 

Also Read: O-1 Visa Processing Time: Duration and Steps Involved

Steps To Start Your Business

Starting a business involves a series of critical steps that help you lay a strong foundation for success. Each step addresses essential aspects of planning, funding, and compliance. 

Here's a detailed overview of starting a company on an F1 visa:

1. Using OPT and STEM OPT for Entrepreneurship

F-1 students can engage in business-related activities while on OPT or STEM OPT, but they must comply with U.S. immigration regulations.

Optional Practical Training (OPT)

• F-1 students can apply for 12 months of OPT after completing their degree to gain work experience related to their field of study.
• During OPT, starting a business may be allowed, but it must be directly related to the student’s degree.
• The student must actively work in their field of study and maintain records proving that their work is relevant.
• Full self-employment is not always recommended, as students must prove they are receiving structured training.

STEM OPT Extension

• Students with degrees in science, technology, engineering, or mathematics (STEM) may apply for a 24-month OPT extension, allowing up to three years of total work authorization.
• If starting a business on STEM OPT, the company must be E-Verify registered and provide proper training plans.
• Students must have a formal employer-employee relationship with their company, which can be challenging if they are the sole owner.

Setting Up A Proper Employer-Employee Relationship

Here's how to properly structure a business to satisfy USCIS requirements:

Creating An Effective Board Structure

Setting up a formal board of directors creates the necessary oversight structure that establishes a legitimate employer-employee relationship:

• Form a C-Corporation or LLC with multiple members to create a legal entity separate from yourself.
• Appoint at least 2-3 qualified individuals to serve on your board of directors besides yourself.
• Ensure board members have relevant industry experience or expertise in your business area.
• Document board meetings with formal minutes and resolutions.
• Grant the board authority to make employment decisions, including hiring, evaluating performance, and termination.

Documenting Employment Controls

Now, to demonstrate a genuine employer-employee relationship, it’s also important to implement these key controls:

• Create a formal employment contract between the company and yourself that outlines terms, responsibilities, and reporting structure.
• Establish clear job duties that align with your field of study and OPT authorization.
• Implement a performance evaluation system overseen by board members.
• Document regular performance reviews conducted by board members.
• Ensure the board has the power to terminate your employment if performance standards aren't met.

Implementation Example

Here’s an example of how this can be implemented:

A computer science graduate on STEM OPT launching a software startup could:

1. Incorporate as a C-Corporation
2. Recruit a former professor and an industry mentor to serve on the board
3. Create bylaws granting the board oversight of all executive positions
4. Draft an employment agreement where the student serves as CTO, reporting to the board
5. Establish quarterly performance reviews with specific technical milestones
6. Document all board meetings where employment matters are discussed
7. Maintain a separate company bank account with board-approved compensation

This structure satisfies USCIS requirements by establishing that the F-1 student is genuinely employed by the company rather than simply self-employed, thus maintaining legal immigration status while building their business.

2. Alternative Visa Options for Entrepreneurs

After OPT or STEM OPT, F-1 visa holders may need a visa that offers more flexibility for running a business. Some possible options include:

O-1 Visa (Extraordinary Ability)

• This visa is for individuals with exceptional skills in their field, supported by awards, publications, or industry recognition.
• Entrepreneurs with a strong portfolio can apply for an O-1 visa to continue their work in the U.S.

To learn more about O1-A Visa, check out the complete guide to O1-A Visa.

H-1B Visa (Employer-Sponsored Work Visa)

• F-1 visa holders can apply for an H-1B visa, which allows them to work for a U.S. employer.
• Some entrepreneurs use cap-exempt H-1B visas to work with a nonprofit, research institution, or university while building their business.

For further insights on the H1-B Visa, read the complete guide to H1-B Visa.

3. Compliance and Legal Considerations

Since F-1 visa holders are primarily allowed to study and train, running a business full-time may violate visa conditions. 

To remain compliant - 

1. Maintain a Proper Role: The F-1 visa does not allow full self-employment. If starting a business, the student should focus on a consulting, research, or advisory role instead of daily management.
2. Ensure OPT/STEM OPT Compliance: Any business activities must align with the degree field, and students must document their training.
3. Explore Co-Founder Options: A U.S. citizen or green card holder can manage daily operations while the F-1 visa holder provides expertise.
4. Plan for Visa Transition: If the goal is long-term business ownership, consider shifting to an O-1, H-1B, after OPT.

Now that we know about the steps involved in starting a business let us take a look at the next part. In the next section, we will see how Alma can help with visa processing. 

Also Read: Demystifying the O-1A "Extraordinary Ability" Visa

Why Is Alma The Best For Visa Consultation?

Navigating the U.S. immigration system can be complex, but Alma simplifies the process with its expert legal support, fast processing, and digital-first approach. Whether you’re a founder, technologist, researcher, or industry leader, Alma provides personalized guidance to secure O-1, EB-1, and EB-2 NIW visas, ensuring a seamless transition to the U.S.

For F-1 visa holders looking to advance their careers and secure long-term immigration status, Alma offers tailored support at every stage of the journey.

How Does Alma Help F-1 Visa Holders?

Transitioning from an F-1 visa to an employment-based visa can be challenging without the right strategy. At Alma, our expert immigration attorneys provide one-on-one consultations to help professionals identify the best visa pathway based on their skills, achievements, and long-term goals.

For those completing their academic programs or Optional Practical Training (OPT), Alma offers strategic guidance on transitioning to:

• O-1 visa – Ideal for individuals with extraordinary ability in science, technology, business, or the arts.
• H-1B visa – For specialized professionals seeking employer-sponsored work authorization.

1. Expert Petition and Documentation Support

The success of a visa application heavily depends on a well-structured petition and strong supporting evidence. Alma’s legal team:

• Provides step-by-step guidance in gathering letters of recommendation, expert testimonies, and key documents.
• Prepares a compelling petition that highlights your achievements, skills, and contributions in alignment with USCIS requirements.
• Ensures error-free filing and compliance with immigration laws, reducing the risk of delays or denials.

2. Long-Term Immigration Planning

Beyond work visas, Alma helps F-1 visa holders secure permanent residency (green card) through strategic immigration planning.

• EB-1 green card – For leaders, researchers, and high-achieving professionals with recognized accomplishments.
• EB-2 NIW green card – A great option for professionals with advanced degrees or exceptional skills making significant contributions to the U.S. economy.

Also Read: Getting a Green Card for Top Talent: The EB-1 Visa Explained

Conclusion

Starting a business is a rewarding journey that requires careful planning, legal compliance, and a clear vision. By conducting thorough market research, creating a detailed business plan, securing funding, and following the necessary legal steps, you can set your business on the path to success. 

Understanding specific regulations, such as those related to F-1 visa holders, further ensures you operate within the law while pursuing your entrepreneurial goals.

Ready to take the next step in your entrepreneurial journey while maintaining your F-1 status? Alma simplifies each step, from eligibility evaluation to preparing a strong petition. 

Let Alma be your partner on the path to achieving your immigration goals. Schedule a free consultation today.

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FAQs

1. Can F-1 visa holders start a business in the US?

Yes, F-1 visa holders can legally form a business, but actively managing or working for it is generally restricted unless authorized under OPT, CPT, or other permitted employment categories.

2. Risks involved in starting a business on F-1 Visa

Starting a business without proper employment authorization can violate F-1 visa terms, leading to loss of status, deportation, or denial of future visa applications.

3. Possibility of using OPT during study programs

OPT can be used during or after academic programs for work directly related to the field of study, including self-employment or work at a business you own, provided it's within the approved OPT period.

4. Applying for a green card as an F-1 student

F-1 students can transition to green cards through employment-based categories (e.g., EB-1, EB-2 NIW) if they qualify, often requiring exceptional achievements or substantial contributions to their field.

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