Self-Sponsorship Under the New H-1B Rules: A Strategic Guide for Startup Founders
In 2025, U.S. immigration policy underwent a pivotal change: for the first time, foreign entrepreneurs can self-sponsor for an H-1B visa—even if they are the sole owner of their company. This regulatory shift opens significant opportunities for startup founders seeking to live and work in the United States while building and growing their businesses.
This guide explains the new self-sponsorship framework, eligibility criteria, compliance requirements, and practical steps to take advantage of this pathway.
The New H-1B Self-Sponsorship Framework
Under the updated guidance effective January 17, 2025, founders who own 50% or more of a U.S. business can serve as both employer and beneficiary for an H-1B petition. The key distinction lies in demonstrating a legitimate employer–employee relationship, typically through independent oversight or corporate governance structures.
This is a departure from prior USCIS policy, which disqualified self-owners from petitioning for themselves due to concerns over lack of employment independence.
Eligibility Criteria
To qualify for self-sponsorship under the revised H-1B rules, applicants must meet the following requirements:
1. U.S. Business Ownership
The applicant must establish a legally recognized U.S. entity (e.g., LLC or C-Corp) with proper registration and compliance. The company must be capable of paying the prevailing wage associated with the H-1B specialty occupation.
2. Specialty Occupation
The role must qualify as a specialty occupation—typically requiring a bachelor’s degree or higher in a specific field. The founder must be performing duties that align with their educational and professional background.
3. Employer–Employee Relationship
Founders must show that their company exercises a degree of control over their employment. This is often satisfied by appointing a board of directors, advisory committee, or independent manager who has authority to evaluate and, if necessary, terminate the founder's employment.
4. Active and Operational Business
The business should be active, with a viable business plan, proof of operations (such as contracts, clients, or revenue), and a clear need for the services the founder provides.
5. Wage and Financial Compliance
The company must pay the founder at or above the Department of Labor’s prevailing wage for the role and document its ability to do so through payroll records, financial statements, or investor funding.
Cap-Subject vs. Cap-Exempt H-1B Considerations
Cap-Subject Petitions
Most self-sponsored H-1B petitions are subject to the annual H-1B cap:
65,000 standard H-1B visas
Additional 20,000 for U.S. master’s degree holders
This means that even eligible startup founders must register and be selected in the H-1B lottery, typically held in March for an October start date. Winning the lottery is a prerequisite to filing the petition.
Cap-Exempt Options
Certain entities and collaborations may qualify for cap-exempt H-1B status, which allows filing at any time of the year and bypasses the lottery. These include:
Nonprofit institutions of higher education
Nonprofit research organizations
Government research institutions
Entrepreneurs who structure their businesses in affiliation with such institutions—such as via joint ventures, research partnerships, or contracting agreements—may access cap-exempt status. Legal guidance is crucial in structuring and documenting these relationships appropriately.
Duration and Extensions
Initial H-1B petitions for self-sponsored founders are granted for up to 18 months. A single extension of an additional 18 months may be approved if the company demonstrates continued compliance and operational growth. Standard H-1B limits of six years may still apply, with extensions possible through green card processes.
Strategic Considerations
Establishing Corporate Governance
Founders must create a credible oversight structure to validate the employer–employee relationship. This can include:
A board with independent members
Employment agreements outlining responsibilities and oversight
Meeting minutes documenting hiring and compensation decisions
Preparing Strong Documentation
USCIS will scrutinize petitions involving self-ownership. It is essential to prepare:
Detailed job descriptions
Business plans with financial projections
Proof of business operations (bank statements, contracts, invoices)
Organizational charts and governance documents
Exploring Long-Term Residency Options
Self-sponsoring founders may also consider transitioning to self-sponsored green card categories, such as:
EB-1A for individuals of extraordinary ability
EB-2 National Interest Waiver (NIW) for work deemed beneficial to the United States
EB-5 investor visa for those investing $800,000 or more in a qualifying enterprise
Each of these categories allows for self-petitioning and may offer a more permanent solution than temporary H-1B status.
Conclusion
The 2025 regulatory update marks a transformative moment for international entrepreneurs in the U.S. By allowing startup founders to self-sponsor for H-1B visas, the federal government has created a viable legal pathway for innovators to grow their ventures domestically. However, success depends not only on eligibility, but also on navigating the lottery process or exploring cap-exempt structures. Compliance, documentation, and legal strategy remain paramount.
To determine whether you qualify for self-sponsorship under the new H-1B framework, or to explore cap-exempt opportunities, contact our firm at 786.461.1617 to schedule a consultation.
