Rules for foreign founders in the US on a student visa
A foreign student is permitted to own equity in a company and to serve on the of a company. A foreign student may not perform work for a company without obtaining appropriate authorization from the foreign student office at his/her university. The rules are no different for “founders."
An individual (whether or not a founder) who is neither a US citizen nor a lawful permanent resident (“green card” holder) cannot work in the United States without a visa that authorizes employment—even if that person is the founder of the company. Depending on the circumstances (including, for example, what degree(s) a foreign national possesses, what country the person is from, the nature of the job, whether the person’s fiancée or spouse is a US citizen, etc.), an individual may be eligible for a variety of non-immigrant and/or immigrant visas. Any company whose founder is in need of a visa should begin by consulting immigration counsel to determine what options may exist.
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- The right time to incorporate
- Determining the right type of entity to create
- Where to incorporate
- Defining “qualified to do business” and where to be qualified
- Who makes decisions for the company?
- How startups compensate employees
- Foreign employees and their need for a visa
- Who owns your IP
- Licensing IP from a university or hospital
- Retaining a license to your IP
- Non-competes with former employers
- Reserving shares under the company’s option plan
- Accelerating vesting on a sale or termination
- Vesting terms that make sense
- Tax implications related to shares that vest
- Difference between consultants and employees
- How startups compensate employees
- Foreign employees and their need for a visa
- Unpaid interns
- Non-competes with former employers
- Reserving shares under the company’s option plan
- Agreements with employees
- Hiring a team before securing funding
- Vesting restrictions on shares held by the founders
- Accelerating vesting on a sale or termination
- Vesting terms that make sense
- Tax implications related to shares that vest
- Difference between options and restricted stock
- Tax differences between ISOs and NSOs
- Granting options vs. issuing restricted stock
- Advisory board setup and compensation
- Reserving shares under the company's option plan
