Can an International Student Form a Startup with an F1 Visa?

The complexities of forming a startup rely on both federal immigration regulations and the state-specific requirements of the company's location. An international student with an F1 visa, seven months away from graduation, may wonder if they can be a co-founder in a US-based startup. This article will highlight the Delaware perspective on this issue and provide an overview of relevant immigration and legal considerations.

Delaware’s Role in Startup Formation

Delaware, a state renowned for its business-friendly laws and regulations, does not impose any immigration-related restrictions on who can form a Delaware LLC or Corporation. The process of establishing a company in Delaware can be straightforward through formation and Registered Agent services, regardless of an individual's immigration status.

This straightforward approach enables non-resident individuals, including international students, to legally found a Delaware company. Delaware's global reputation as the most favorable jurisdiction for incorporating corporations and LLCs plays a significant role in this accessibility.

Encouraging International Entrepreneurship

There are no Delaware laws, regulations, customs, or obligations that would prevent an F1 visa holder from forming a Delaware company. From a Delaware perspective, international students are just as welcome as local residents to start small businesses with minimal resources. In fact, Delaware actively encourages such endeavors as a critical component of its business ecosystem.

Engaging in Business Activities While on an F1 Visa

While an F1 visa holder can hold passive investments in a startup, forming and managing the company is subject to specific legal restrictions. Under the F-1 visa, an individual can form a company but cannot serve as an officer responsible for running the business or as an employee, independent contractor, or any other active role in conducting the business.

This limitation stems from federal regulations concerning the status of an F1 visa holder. However, it is important to note that F1 visa holders can hold shares of the company and act as a director, so long as they do not take on an active management role.

Legal and Practical Considerations

The information provided here is a general guide and should not be considered professional legal advice. Before forming a startup, it is essential to consult with an attorney or a tax professional to ensure compliance with all relevant laws and regulations.

It is worth noting that more than half of the billion dollar companies in the USA were founded by immigrants. This statistic underscores the potential for international students to succeed in the US startup ecosystem.

In conclusion, while there are certain limitations on holding active roles in a startup while on an F1 visa, forming a company in Delaware is entirely possible. By understanding the distinct roles allowed and seeking professional legal guidance, international students can successfully pursue their entrepreneurial dreams in the US.

Disclaimer

This answer is provided for informational purposes only and is not a substitute for professional legal advice. This answer does not create an attorney-client relationship nor is it a solicitation to offer legal advice. If you ignore this warning and convey confidential information in a private message or comment, there is no duty to keep that information confidential or forego representation adverse to your interests. Seek the advice of a licensed attorney in the appropriate jurisdiction before taking any action that may affect your rights. If you believe you have a claim against someone, consult an attorney immediately, otherwise, there is a risk that the time allotted to bring your claim may expire.