How to Start Your Company on an F1 Visa in the USA?

If you're reading this, you've probably felt the itch.

You came to the U.S. on an F1 visa to study.

But somewhere in that lecture hall, dorm room, or side project, you found a real problem.

Something that frustrated you. Or excited you.

And your first instinct?

“I want to build something that solves this.”

That’s how every founder starts.

But then, the fear hits:

“Wait… can I even start a company on an F1 visa?”

The short answer?

Yes, you can.

And not only that, you can register the company, raise money, pay yourself, and even sponsor your own OPT, STEM OPT, and H1B down the line.

Let me break it down for you.

1. First: Yes, You Can Start a Company on an F1 Visa

You’re not breaking any laws by registering a business while you’re on an F1 visa.

You just can’t actively work for it until you’re legally authorized (more on that later).

Here’s what starting a company actually means in legal terms:

You register a legal entity (usually a Delaware C-Corp)

You get an EIN (Employer Identification Number)

You open a business bank account

You don’t draw salary or perform day-to-day duties until your OPT starts

You can own the company, be listed as a founder, even raise funds.

You just can’t be an active employee until you’re work-authorized.

That’s where OPT and STEM OPT come in.

2. How to Register a Company as an F1 Student

Here’s how you can legally set up your startup in the U.S.:

Step 1: Register a Delaware C-Corp

Why Delaware? It’s the industry standard, investors prefer it, legal structure is startup-friendly, and it separates personal and business finances.

You can use:

– Stripe Atlas

– LegalZoom

– Clerky

– ZenBusiness

Or a lawyer 

It takes a few days and costs around $300–$500.

Step 2: Get an EIN

Think of this as the business version of your SSN.

You’ll use this for:

– Opening a business bank account

– Payroll

– Filing taxes

You can apply directly through the IRS website. It’s free.

Step 3: Open a Business Bank Account

Use your EIN and incorporation documents to open an account.

Don’t mix personal and business finances. Ever.

This becomes critical when you apply for STEM OPT or H1B.

3. OPT: The First Legal Step to Work for Your Own Company

Once you graduate and get your OPT EAD card, you can officially work for your company.

Here’s what you need to do:

Notify your DSO immediately.
Provide:

– Company name

– EIN

– Job title

Description of duties (must be related to your field of study)

Document your work hours (min 20/week)

Keep everything compliant, even if you’re not paying yourself yet

Yes, for the first year, you can be unpaid.
But you must document work activity.

4. STEM OPT: Now It Gets Serious

To extend OPT for another 24 months, things get stricter.

You’ll need to prove:

Your company is E-Verified

(You can register it, takes 15 minutes)

You have a valid employer-employee relationship

You can't just be your own boss. You need:

A board of directors or a co-founder

Someone with the legal authority to fire you

In short: USCIS needs to see that someone other than you has oversight.

You’re being paid

Stipend, salary, or equity, but it must be clear and documented.

You’ll fill out Form I-983, where your employer outlines your training plan.

5. How to Pay Yourself (Without Going Broke)

During STEM OPT and especially before H1B,
you’ll need to show consistent salary payments.

Here’s how student founders fund their own payroll:

Option 1: Friends & Family Round

Raise a small round using a SAFE note (Simple Agreement for Future Equity).

You can offer future equity at a discount once you raise an official round.

This is underrated. Many people around you want to support, they just need clarity.

Option 2: Angel Investors

If you have:

A product

Traction

Clear use case

…you can raise from angels who write $10K–$100K checks.

Use that money to pay yourself a modest, legal salary.

Option 3: Grants & University Support

Many schools offer:

Entrepreneur grants

Startup competitions

Incubator access

Free coworking spaces

Pitch events with prize money

Explore them.
Winning a $5K or $10K competition could help cover your first payroll.

Option 4: Accelerators

If you’re ready, apply to:

Y Combinator

Techstars

500 Startups

Antler

Others

They invest in exchange for equity, often $120K–$150K.

That’s more than enough to prove salary compliance on STEM OPT or H1B.

6. What About H1B?

Yes, you can file H1B through your own company.

Here’s what you’ll need:

Proof of specialty occupation (e.g., Software Engineer, CS degree)

Prevailing wage compliance (pay yourself market minimum)

Employer-employee relationship (same board structure applies)

Clean payroll records and cap table

A good immigration lawyer

One of the founders I interviewed actually did this, got laid off from a previous company, started his own, filed H1B through it… and got approved.

It’s possible.

But only if your paperwork is clean and your company structure is airtight.

7. Common Mistakes to Avoid (Don’t Skip This)

1. Working before EAD card activation

Don’t engage in daily operations before your OPT starts — it violates F1 rules.

2. No salary on STEM OPT or H1B

You can be unpaid during first-year OPT. But for STEM/H1B, salary is mandatory.

3. Messy documentation

Keep track of:

– Pay stubs

– Offer letters

– Cap table

– Board meeting notes

– Investor agreements

These will save you if USCIS ever asks for evidence.

4. Ignoring your DSO

Update your DSO for every change: job title, company, pay, address, everything.

5. No employer-employee structure

This is the #1 cause of denial in STEM OPT extensions filed through founder-led startups.

If you’re an international student with the heart of a builder, this country gives you room.

But it won’t hold your hand.

You’ve got to figure out:

Legal structure

Payroll

Compliance

Funding

Team

You don’t need to be rich.
You don’t need to be connected.

You just need to start smart.

And surround yourself with the right community.

Good Luck!

-Yudi J