H-1B visa holders in the United States are allowed to start their own businesses as long as they are not actively involved in the day-to-day operations and only earn passive income. While several dancing videos of Indian-origin visa holders in the US have sparked a hate campaign and a huge controversy over whether they are breaking visa rules by running a dance school alongside their full-time work, this has always been a gray area for H-1B visa holders.
The H-1B visa program allows businesses to hire skilled professionals from outside the country. These are often niche professions and these companies never seem to find enough Americans for them. The H-1B is a non-immigrant visa through which an individual can stay in the United States for up to six years – the visa comes with an initial validity of three years and can be extended for another three years. If they apply for a green card and start the process, they can get extensions accordingly.
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H-1B visa holders cannot engage in side hustles, and even content creators cannot monetize their social media accounts, even if they have a large following. According to immigration experts, there are clear guidelines on what is and is not allowed for H-1B visas. Immigration attorney Ancy S Varghese, in a previous blog post, provided a list of do’s and don’ts for H-1B visa holders to consider before starting a company while on an H-1B visa.
Dos
- Consolidate and invest in your business
- Consult with attorneys to create compatible structures
- Do you get negative returns (dividends, capital gains)
- Prepare to transfer an H-1B or concurrent H-1B if you want to work for your startup
Don’t do that
- Do not perform day-to-day operations or supervise employees
- Do not sign contracts or engage in sales activities
- Don’t assume that working “for free” makes it legal
- Don’t wait for USCIS to detect you – be proactive
So, according to the rules, it is allowed to invest in a dance academy while you are on H-1B visa but it is not allowed to teach or operate dance while you are on H-1B visa. Even unpaid but active work is not acceptable. Varghese suggested that USCIS does not distinguish between paid and unpaid work when it comes to unauthorized work.