Starting a Business in the USA and Working for that Business
As an immigration lawyer for investors and entrepreneurs, I work with foreign investors looking to start businesses in the USA. One of the questions I get asked all the time is: Can I start a business in the USA and work for that business?
The short answer is: Yes, you can start a business in the USA. But, if you want to work for that business, you will need to have work authorization.
In this guide, I will discuss work authorization and I’ll go over 4 ways to start and operate a business in the US. The first two ways involve setting-up a business without working for the business, and can be done without work authorization. The second two ways involve using visa categories that allow you to run a business in the US.
Overview:
1. Introduction to work authorization:
- What is considered work?
- What are the consequences of unauthorized employment?
- How to get work authorization
2. Two Ways to Own a Business in the USA Without Work Authorization
- Start a business and partner with someone authorized to work in the US
- Start a business and delegate all operations to a manager
3. Two Ways to Operate a Business in the USA With Work Authorization
- E2 investor visa
- EB-5 investor visa
4. Conclusion
1. Introduction to Work Authorization
US immigration law requires foreign nationals to have work authorization in order to “work” in the United States.
Unfortunately, the US immigration regulations do not clearly define what activities are considered “work.”
What is Considered Work?
According to the Immigration and Naturalization Service (INS): employment is considered “any service or labor performed in the United States by an individual, other than an independent contractor, for wages or other remuneration.”
Employment is also defined as the act of being employed for one’s self.
Also, all types of employment taken without proper authority are considered unauthorized employment.
Although the immigration regulations are not as specific as we would like them to be, two things are clear:
1. You can set-up a company in the USA without work authorization. This means you can:
- Set-up the business: form the corporation, LLC, etc.
- Open the bank account for the business
- Etc.
2. You need work authorization to run your business. Running your business includes:
- Actively managing your business
- Being employed by your business
- Providing services for your business
- Working for your business
- Etc…
What are the Consequences of Unauthorized Employment?
There are many serious consequences of working in the USA without the appropriate work authorization. These consequences include:
- You can be found to be in violation of your visa status
- Your visa can be voided
- You can be subject to removal proceedings (deportation)
- You can be barred from re-entry to the US depending on the situation
For these reasons, if you are planning to work in the US, it is very important to make sure that you are doing so with work authorization.
How to Get Work Authorization
There are three different ways to get work authorization to the USA. We will discuss these ways below.
To enter the United States as a foreign national, you typically need a visa. Depending on the visa that you enter the United States with, you will be classified under a particular “status:”
Here are some examples of different types of status:
- Visitor for business/pleasure (B1/B2)
- Individual with extraordinary ability (O1)
- Non-immigrant investor (E2)
Of these many types of status, about 60 qualify for work authorization.
- In order to get work authorization, you will have to fall within one of these classifications.
- Keep in mind: Visitors are generally not permitted to work in the United States.
The classifications of work authorization can be broken down into 3 basic categories:
- Authorization to work incident to immigration status
- Authorization to work for a specific employer incident to immigration status
- Must apply for work authorization
Authorization to work incident to immigration status
If you are in this group:
- You do not have to apply for work authorization
- You are automatically authorized to work based on your status
- Lawful permanent residents (green card holders) fall under this category
Authorization to work for a specific employer incident to immigration status
If you are in this group:
- You do not have to apply for work authorization
- You are automatically authorized to work based on your status
- You are limited to working for a particular employer
- E2 investors fall under this category
Must apply for work authorization
If you are in this group:
- You do have to apply for work authorization
- You are not automatically authorized to work based on your status
- To get work authorization, you will have to apply for an Employment Authorization Document (EAD) by filing a Form I-765
- Spouses of E2 non-immigrants and spouses of L1 non-immigrants fall under this category
If you have any questions about whether your status qualifies for work authorization, please contact me directly at Michael@AshooriLaw.com. I’d be happy to discuss your particular situation with you in more detail.
Now that we’ve covered the basic concepts of work authorization, lets discuss two ways to own a business in the US without work authorization.
2. Two Ways to Own a Business in the USA Without Work Authorization
i. Start a business and partner with someone authorized to work in the US
As I mentioned earlier, you are permitted to set-up a company in the US without work authorization.
Keep in mind, that setting up a business is very limited to certain tasks such as:
- Setting up the company (corporation, LLC, etc.)
- Opening a business bank account
Without work authorization, you are not permitted to actively engage in running the business.
So, one way to own a business in the USA without work authorization it to partner with someone authorized to work in the United States.
Examples of people authorized to work in the US:
- United States Citizens
- Lawful Permanent Residents
- Non-immigrants authorized to work in the USA
Here's how it works:
- By partnering with someone authorized to work in the USA, you can delegate all of the managerial and operational duties to your partner.
- Your role in the business would be very limited and would resemble that of a passive investor.
- You can receive profits from the business but you cannot receive a salary.
- A salary would indicate that you are receiving compensation based on providing services, which is not permitted.
ii. Start a business and delegate all operations to a manager
If you do not wish to partner with someone, another option to consider is to hire a manager (who is authorized to work in the USA), and delegate all operational responsibilities to the manager.
- In this scenario, your role in the business would be very limited as well and would resemble that of a passive investor.
- After setting-up the business and hiring a manager, you should have no involvement in the operations or the management of the business.
- Your manager should interview and hire staff as needed, and perform all other operations and managerial functions.
- You can receive profits from the business but you cannot receive a salary.
After going through the above two options, you may be thinking to yourself that these restrictions would be too limiting. In the next section we will discuss 2 visa categories that would actually allow you to start a business in the US and work for that business.
3. Two Ways to Operate a Business in the USA With Work Authorization
Now that we’ve discussed how to own a business in the USA without work authorization, lets go over two ways to start a business in the USA and actually operate your business.
i. E2 Investor Visa
The E2 visa is a non-immigrant visa that allows investors and entrepreneur to live in the US and operate a US business.
Benefits of the E2 visa:
- Allows you, your spouse, and your unmarried children under 21 years old to live in the US.
- With an E2 visa, you have work authorization to work for your business.
- The E2 visa can be renewed over and over as long as your US business continues to meet the E2 visa requirements.
- Your spouse can apply for work authorization to work in the US.
There are 8 main requirements to get an E2 visa:
1. You must be from a country with an E2 treaty with the US.
2. You must have the intent to leave the United States once your E2 status ends.
3. You must invest a “substantial” amount in a US business.
4. Your US business must be a “bona-fide” enterprise.
5. Your business cannot be a “marginal enterprise.”
6. You must be coming to the United States to “direct and develop” your US business.
7. Your investment funds must have been obtained lawfully.
8. Your investment must be “at-risk” and irrevocably committed to the US E2 business.
ii. EB-5 Investor Visa
Other than the E2 visa, another option to consider is the EB-5 visa. The EB-5 visa is an immigrant visa for investors and entrepreneurs. With an EB-5 visa, you can live in the USA and work for your business in the USA.
Benefits of the EB-5 visa:
- Qualifies you, your spouse, and unmarried children under 21 years old for a green card.
- Gives you, your spouse, and children work authorization.
- You can operate your business in the US.
There are 6 main requirements to get an EB-5 visa:
1. Invest in a New Commercial Enterprise. You can:
- Start a new business
- Invest in an existing business
- Purchase an existing business
- Or invest in a regional center
2. Invest a minimum of $1 million (or $500,000 in some cases).
3. Create 10 full-time jobs for US workers.
4. You investment funds must have been obtained lawfully.
5. Your investment funds must be “at-risk.”
6. You must engage in the management of the US business.
4. Conclusion
As a foreign national, you must have work authorization in order to work in the USA.
If you want to start a business in the US, there are two things you should be aware of:
1. You can set-up a company without work authorization. This means you can:
- Form the business: (Set-up the corporation, LLC, etc.)
- Open the bank account for the business
- Etc.
2. You need work authorization to run your business. This includes:
- Actively managing your business
- Being employed by your business
- Providing services for your business
- Working for your business
Working in the US without work authorization can have very serious consequences including deportation. So if you plan to work in the US, make sure to do so with the appropriate work authorization.
If you are interested in starting a business in the USA without working for the business, there are two options you may want to consider:
- Start a business and partner with someone authorized to work in the US
- Start a business and delegate all operations to a manager
If you want to start a business in the USA and work for the business, the following two visas are great options to consider:
- E2 visa
- EB-5 visa
In addition to what I’ve discussed in this article, there are many other options to consider. If you would like to discuss these options in more detail, feel free to email me directly at Michael@AshooriLaw.com.
Ashoori Law is a full-service immigration law firm focused on helping investors and entrepreneurs get visas to the United States.
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Mathew Emanuele
23:51 26 Dec 22
My wife and I used Ashoori Law Services for our E2 Visa Application and were very happy with their work. Michael's team was very professional and the entire process was incredibly efficient. We loved how they had an online portal set up to receive... all the necessary documents they required. It simplified the process and cut out any guesswork. We followed their direction step by step and if there were any questions they were answered quickly. Elaine did a fantastic job putting our business plan together and Rebecca was our lawyer, who was highly attentive. We would definitely recommend using Ashoori law!read more
Syeda Nikhat Fatima Jafri
16:29 20 Dec 22
Ashoori law worked really fast. I’ve already had received my green card in an year of submission. They made the process very easy and gave us confidence that things will be done correctly. And they also kept us up to date with email and the online... tracking along the way.Thanks to Michael,Milena Manukyan and Carlito Romero (an ex worker) in the firm.read more
Matteo DP
21:42 14 Dec 22
it's a pleasure working with them Matthew in particular has been very supportive and available during the process
Sofiane Chtioui
14:54 14 Dec 22
I strongly recommend AshooriLaw for all your US immigration needs!I am from Canada and AshooriLaw was instrumental in helping me and my wife in obtaining our E2 visa. From the first discovery call to preparing for the visa interview in the Toronto... US consulate, the AshooriLaw team provided valuable guidance and outstanding support all along and made sure we submit a strong application that was approved with hardly any questions!Prior to starting the process, I talked to a couple of immigration attorneys and read about some bad experiences which made me worry about the kind of service I will get. Now let me tell you that the immigration attorney makes all the difference and choosing the right one will be key to the success of your endeavor!I had a very positive experience with AshooriLaw from the start and was impressed by the professionalism, the well organized workflow and the timely and friendly interaction. On top of that, I paid reasonable fees compared to other firms out there! I will definitely call AshooriLaw for any future US immigration needs and I recommend you give them a try!Thank you Lahaina, Christina, Rohit, Elaine, Melissa and Michael for your service!read more
Brandon Kim
09:12 14 Dec 22
Utilizing the services of Ashoori Law has been a pleasure and an outstanding experience. I highly recommend Ashoori Law to anyone who needs immigration assistance. With the help of Ashoori Law my spouse and I were able to get our immigration... documents seamlessly and without no issues. Ashoori Law is very customer oriented and from Day 1 is always available for you if you have any questions or concerns. Going forward, my spouse and I definitely plan to use Ashoori Law for future immigration services.read more
Eyad Alfawaeer
06:13 14 Dec 22
Attorney Lahaina and her legal assistant Christina as well as all Ashoori Law team are really awesome, they helped me in a very professional manner with a very quick and positive outcome, Highly recommend.You will be in very good hands. They were... responsive, knowledgable, helpful, and truly cared about helping me in renew my E2 visa.read more
Linda Bradley
04:04 14 Dec 22
Very happy with your services 🙏🏻🙏🏻🙏🏻Very good at their work and they explain very well so that you have patience in the waiting processes
Leva Eghbali
20:50 06 Dec 22
Ashoori Law helped get us an E2 visa. They were a dream to work with. They had a whole team who would take care of various aspects of our application and guided us every step of the way. We were on a time crunch and they got everything done on time... for us despite the rush and were so kind and patient through it all. We are so happy we found a great firm to continue working with in the future and can be sure of a great outcome and complete professionalism.read more
Molly Hagman
05:29 24 Nov 22
Ashoori Law helped me with the renewal of my O1-visa and the whole process was taken care of in an exceptional way. Everything from the onboarding consultation call to the process of collecting all documents, writing the petition, and sending in,... all taken care of in a timely manner. I will definitely recommend Ashoori Law and come back for future representation.read more
Anatolii Makarov
03:38 24 Nov 22
Hi, few day ago I got approve for my EB2 NIW case. I want to say big thanks to Ashoori Law firm, especially Michael and Christina. All steps was clear and they took care all of my questions and concerns. They did all work highly professional and now... I see all decisions was made right and by the time. I really appreciate for your work from first call to approval.read more
Glen Robinson
02:08 23 Nov 22
Fast and efficient lawyer
akbar pirani
15:22 22 Nov 22
The most genuine people out there ! I was super impressed with thier honesty .Special thanks to Ms Lindsey ..We need people like you in this world !Best wishes to Ashoori Law.
Sam Bourgi
00:58 22 Nov 22
I discovered Ashoori Law after doing research on U.S. visa and immigration programs for Canadians. I came across Michael Ashoori’s YouTube channel, which, in retrospect, has the best explainer videos for U.S. immigration on the internet. After... watching his videos for a few weeks, I set up a consultation with Ashoori Law and was immediately connected with attorneys Ehsan Mehri and Lorianne Cercenia.I came into this fairly knowledgeable about the U.S. immigration system and what program I wanted to pursue. After reviewing my situation during the initial consultation phase, Ehsan explained what programs I’m eligible for as a Canadian. Lorianne was assigned my case and got to know my unique situation. She then recommended a visa option I had no clue existed – and it saved me a lot of time, money and headaches.Over the next few months, Lorianne collected my documents, prepared my application and helped me build a strong case for my visa. She was always extremely responsive and knowledgeable about the immigration system. When I attended my interview at the U.S. consulate, my application was quickly approved. That’s because I was prepared for everything, and my supporting documentation was iron-clad.I can’t speak highly enough about Ashoori Law. They took the time to get to know me and gave me a solution that matches my current set of circumstances. Their customer service is unmatched, and their knowledge of the immigration system is top-notch. I was reassured from the very beginning that my application was in good hands.Overall, I’m extremely satisfied with the whole process. I got exactly what I wanted. I’ll be working with Ashoori Law for all my immigration needs moving forward. Thank you, Lorianne and team!read more
Oubai Al Hendi
18:34 20 Nov 22
Ashoori Law had helped me with my O1 application. I cannot thank Michael, Jonathan and Ehsan enough for their real and genuine advisory and assistance all the way from the first contact till approval. The approval that I could have in a record time... of 2 days after submission due to my profile and their work to show it in the right way to the officer. I highly recommend them for O1 tech startups applicants.read more
leena Alhelo
01:51 15 Nov 22
Great to work with! They explain everything in detail and made the process very easy and fast. highly recommended
Kay Qiao
20:27 08 Nov 22
Very efficient, very professional, very responsive. Can't be more appreciated with their dedicated team work. Thank you so much!!
Shane Teelucksingh
19:26 07 Nov 22
Researched quite a bit before eventually selecting Ashoori Law as my attorney partners and I'm happy that I did . They are responsive, helpful and guide you through the entire process. I had many questions, and they had the answers and all... challenges were quickly addressed. Lahaina led my particular journey and provided quick feedback all along the way. They have a competent team and their portal makes submitting documentation really simple while allowing you to review where you are in the process, which I personally found extremely useful. A very good blend of technology and proficiency. Would definitely recommend.read more
Shamzil Ramiz
07:57 07 Nov 22
Excellent response..
Sanket Shah
00:29 04 Nov 22
Ashoori law is a Fantastic law firm, They are very Professional and Knowledgeable specially Attorney : Lahaina Araneta. As soon as I signed on they got to work right away to start gethering all Details. Anytime I had questions Lahaina Araneta is... ready to give me quick Answer. I felt our case was in good hands. The team is very responsive and knowledgeable, and they work hard to keep up to date with all the latest changes in immigration law.Definitely we will use them Service again in Future.Highly recommend.read more
Krishna Mukkera
23:30 31 Oct 22
Provided excellent support/guidance on the I-90 renewal application. Strongly recommend them.
Fari Hamid
10:03 29 Oct 22
My family and I hired Ashore Law to consult with, and to handle our immigration case whilst our migration from Pakistan to the USA. Ashore Law proved to be completely professional, functional and delivered services without any problems or... complications arising throughout our process. Their staff is indeed highly trained, extremely courteous and thoroughly professional. Ashore Law represented our case, on our behalf, and they delivered what they promised. Our applications for US immigration (E2) made through Ashore Law were handled very well throughout the process, and my family and I faced no difficulties whatsoever. I would definitely highly recommend Ashore Law for E2 consultancy services any day!read more
Copier clearance center
22:04 28 Oct 22
Michael Ashoori from the Ashoori Law firm has changed our family's life! We were here in the USA on a E2 non immigration Visa and thought we would be stuck with the E2 visa with no chance of immigration! When we contacted Michael and told him our... situation, he listened and started a game plan for us right away with an EB5 immigration Visa, Today we checked USCIS website for case update and we were thrilled when we saw our case approval notice. WOW LIFE CHANGING!!! We definitely recommend Ashoori Law firm for all your immigration services.read more
Kalubi Fwanyanga
19:44 28 Oct 22
I retained Michael and team to help ease the process of filing and also just guide us so we do don’t experience any hurdles and sure enough, when submitting the paperwork, me and hubby forgot to append our signatures on one of the forms and Michael... and team immediately noticed before the forms were sent, the process went as smooth as it can be and guess what, after 3 months submitting the documents to uscis, I received my work permit and SSC and after 10 months into the processing period, we received my parole approve notice and a date for our interview appointment! To add a cherry to the cake, the team has availed itself for any questions and guidance to thoroughly prepare us for the interview! What higher manner of professionalism can be exhibited above this! The team is fully engaged and we are grateful.read more
Aidana Ibraeva
17:07 27 Oct 22
I don’t often write reviews, but in this case I just don’t want to miss the opportunity to write about these people who are really professionals and know their business very well.If you’re still doubting whether or not you should choose them, I... can assure you that you won’t be left disappointed.read more
SangJo Kang
22:57 26 Oct 22
Me and my wife applied for green card through Ashoori Law last December and our case were approved this October. I was in J-1 visa and applied NIW case. They really helped us out from the beginning, especially helping me writing the recommendation... letters. It seemed like their law firm had a lot of people who were very experienced and they answered all the questions that I had. They even had a backup strategy for me if my case was not approved after my visa was expired. I really appreciate all their hard work and kindness and I highly recommend others if they are seeking immigration to the US. I would definitely contact them when I need help for my immigration status.read more
alinafe joshua
18:38 26 Oct 22
Thank you so much! I can't tell you how much I appreciate the amazing legal work you did on my behalf. You and your team are so understanding, helpful and fast in doing things I recommend anyone who needs help to not hesitate but to contact you ASAP.
arshad mohammed
07:50 25 Oct 22
I am very happy and pleased to be writing this review. I came to know about Ashoori Law Firm through you tube videos and decided they are the best firm for my L1A petition, they proved my belief to be 100 percent right and got approval for my case... within five months on the first go. I thank the wonderful team who were very helpful and courteous during the entire process and helped me and answered all my queries promptly. I will be suggesting the firm to many of my friends who are willing to immigrate to The United states.read more
K and G Murphy
23:20 21 Oct 22
They were very patient in waiting for us to get everything we needed and made the process fast and easy. We didn’t even have to do an interview. My wife has a 10 year residency card and right to work. Thank you
Mike Latreille
19:49 20 Oct 22
Ashoori Law was the best choice I could have made for my immigrating from Canada to the US .. their legal team has been easy to work with …super efficient and very professional and always there when I needed guidance or direction..I am greatful for... there team and would highly recommend them to anyone looking for an immigration firm to represent them on their journey . A very special thanks to Michael Ashoori, Mathew Larsen and Jeser Romero.. for there attention to detail and impeccable professionalism .. Thanks again Michaelread more
Abdul Salman
17:59 19 Oct 22
Received EAD today. Ashoori have professional attorneys, they are very helpful and filing fees are affordable . Definitely recommend my family and friends. Hopefully I receive my Green card soon.
Sean Machii
05:23 19 Oct 22
Thank you for helping me to get the E2 visa. Ashoori Law team is professional and explain everything I need to know in detail. Highly recommend this law firm for E2 visa.
Eric Askerov
17:18 14 Oct 22
Ashoori Law is a law firm you can trust and be sure they won’t leave you alone with your problems. I’ve been working with a few other lawyers before, but they all are working with you only because of money and don’t really care about you and your... situation.I contacted Ashoori Law’s team with an urgent situation and they were able to take my case, get everything done super smooth and fast. Ashoori Law’s team is reliable, professional and easy to work with. They take care of everything, all you need to do is cooperate and provide necessary papers on time.I highly recommend the firm and specially Shruti, who was working on my case. Only 5 star!read more
Genx Solutions LLC
21:55 13 Oct 22
They handled my E2 process professionally. Collecting all the necessary documents were done systemically. I'm fully satisfied with the service. Michael review the file personally and answer any questions come up. Would recommend Ashoori Law office... with no doubt.read more
Frida Davidsson Art
19:39 13 Oct 22
I’m very happy I choose Ashoori law! They have been so helpful and very quick with responding! Whenever I have questions they really take their time to explain, and my case has been processed quicker expected! Everything has been going very smooth... without any issues. I strongly suggest Ashoori Law!read more
Hiitokiri
00:13 12 Oct 22
Milena she will take care of you in your case of the Mater. Experience and excellent service she explained everything in to easy detail...I give her 💯 top notch service if you have any questions she respond back fast efficient...quick and... easy process....and make it easy for you to process your paper work....thank you so much Milena OUSTANDING Work!!! Thanks Ashoori Lawread more
Guru
19:36 11 Oct 22
Excellent service extended by Lorianne & team @ Ashoori Law. Kudos.
Brian Tetreault
02:37 06 Oct 22
Fantastic experience with Ashoori Law. Michael and his team were methodical in their handling of our E2 case. Communication with the firm was excellent and all queries were responded to in a timely manner. I would highly recommend Ashoori Law.
Karen Brizuela
01:04 06 Oct 22
Michael and team thankyou very much!! Right and professional answers. you guys did the the job as we agree.. and we did get our E2 visa status.Abe Brizuela.
Winston Stewart
13:50 27 Sep 22
ashoori law took my case in April 2021. They made sure that everything was done correctly before fileing. upon receipt of the case we awaited uscis decision. our petition was approved august 2022. during this time period ashoori law was always... available for my concerns or questions. therefore without reservation I recommend ashoori law to anyone seeking professional legal services in the immigration field.read more
Allen Gibbons
20:02 24 Sep 22
They were informative and very professional. Got the case done smoothly and on time. I would highly recommend Ashoori Law Firm.
Michael Ashoori, Esq.
U.S. Immigration Lawyer
I’m a U.S. immigration lawyer and I help families, professionals, investors, and entrepreneurs get visas, green cards, and citizenship to the United States.
Since starting my law firm, I’ve helped hundreds of people from all over the world with their immigration needs. I’m very passionate, hard-working, and committed to my clients.
Got a question? Send me an email.