As more international entrepreneurs look to build their companies in the United States, understanding the interplay between U.S. visa options and startup ownership structures has become essential. Choosing the wrong entity or pursuing the wrong immigration strategy can delay — or even derail — your plans.
Here’s what foreign founders need to know before they incorporate their startup or begin the visa process.
Setting Up the U.S. Business Entity
Foreign nationals launching a startup in the U.S. typically form either a C Corporation or Limited Liability Company (LLC). In most cases, especially for startups seeking venture capital, a Delaware C Corporation is the preferred structure. It’s widely accepted by investors and provides familiarity for legal and tax advisors.
However, foreign ownership of a U.S. company does not automatically grant U.S. immigration benefits. That’s where strategic visa planning becomes critical.
Visa Options for Startup Founders
Several employment-based visa categories may be viable for foreign entrepreneurs. The right path depends on the founder’s qualifications, role in the business, and country of citizenship.
O-1 Visa: For Founders with Proven Distinction
The O-1 is a strong option for founders who have achieved notable recognition in their field. This includes leaders with a record of awards, media coverage, publications, investor backing, or past successful ventures.
There is no quota for O-1 visas, and it can be a flexible route for individuals in science, technology, or business who play a central role in an innovative startup.
L-1 Visa: For Founders Expanding a Foreign Business
The L-1 visa allows a foreign business owner to transfer to a new U.S. entity if there’s a qualifying corporate relationship (e.g., parent, branch, affiliate). You must have worked for the foreign entity for at least one year in the past three.
The L-1A is for executives and managers, while the L-1B is for those with specialized knowledge. Both allow you to work in the U.S. while building your business. The L-1 “blanket” process may speed up approvals for founders from larger companies.
E-2 Visa: For Treaty Investors
The E-2 visa is available to citizens of countries with a treaty of commerce with the United States. Founders must make a significant investment in the U.S. enterprise, retain at least 50% ownership, and actively manage the business.
Unfortunately, founders from countries like China, India, Brazil, and Russia are not eligible for this visa, as their countries do not have qualifying treaties.
Key Considerations for Chinese and Russian Founders
Due to heightened geopolitical tensions and national security scrutiny, founders from China and Russia may face longer adjudication times, requests for additional evidence, and higher denial risks, especially in technology and data-driven sectors.
Startups involved in AI, cybersecurity, blockchain, or biotech should be especially cautious, as these industries may trigger regulatory concerns related to export controls and foreign investment (CFIUS). Early legal guidance is essential to reduce potential risks.
Immigration Is Not One-Size-Fits-All
Founders often assume that forming a U.S. company automatically opens the door to a work visa — but immigration rules are more nuanced. The company must demonstrate it can employ the founder, pay the salary, and comply with the specific requirements of the visa category.
For example, a sole founder with no staff or office space may have difficulty proving eligibility for an L-1 or H-1B visa. U.S. immigration authorities look for structure, oversight, and genuine business activity.
Final Thoughts
Launching a startup in the United States as a foreign founder can unlock incredible opportunities — but it requires advance planning and a thoughtful strategy. By aligning your corporate formation, equity structure, and immigration pathway, you can position yourself and your business for long-term success.
At NPZ Law Group, we assist entrepreneurs from around the world with customized visa strategies and corporate planning. If you’re a foreign founder exploring U.S. expansion, we’re here to help.
Contact Information
If you or your family members have any questions about how immigration and nationality laws in the United States may affect you, or if you want to access additional information about immigration and nationality laws in the United States or Canada, please do not hesitate to contact the immigration and nationality lawyers at NPZ Law Group. You can reach us by emailing info@visaserve.com or by calling us at 201-670-0006 extension 104. We also invite you to visit our website at www.visaserve.com for more information. Contact us today.