Impact of the New H-1B Entrepreneurship Visa Rules on E-Commerce Owners and H1B1 Visa Holders

The recent modernization of the H-1B visa program, particularly the updated rules allowing self-sponsorship for entrepreneurs, represents a significant shift in U.S. immigration policy. These changes have direct implications for foreign nationals seeking to establish e-commerce businesses in the U.S., while the impact on H1B1 visa holders remains distinct due to differences in visa categories. Below is a detailed analysis of these developments.

Key Provisions of the 2025 H-1B Modernization Rule

1. Self-Sponsorship for Entrepreneurs

Under the revised regulations, individuals can now petition for an H-1B visa through their own U.S.-based startup or business. This eliminates the traditional requirement for a third-party employer to sponsor the visa, provided the entrepreneur meets the following criteria[1][2][7]:

• Specialty Occupation Requirement: The role must require specialized knowledge typically obtained through a bachelor’s degree or higher (e.g., software development, data analytics, or digital marketing).
• Employer-Employee Relationship: The business must have a formal structure (e.g., LLC, C-Corporation) with a board of directors or equivalent authority capable of hiring, supervising, and terminating the founder’s employment[8][12].
• Duration Limitations: Initial petitions and first extensions are limited to 18 months, with subsequent extensions subject to stricter scrutiny[4][7].

2. Eligibility for E-Commerce Entrepreneurs

The rule explicitly benefits e-commerce entrepreneurs by enabling them to:

• Legally Operate Their Business: Previously, H-1B holders could incorporate a business but were barred from actively managing it unless sponsored by an external employer. The new rule permits founders to perform day-to-day operations, such as product development, client negotiations, and strategic planning, provided these activities align with a specialty occupation[5][6][10].
• Avoid EB-5 Investment Requirements: Unlike the EB-5 Immigrant Investor Program, which mandates an $800,000 investment and job creation, the H-1B pathway requires no upfront capital, making it more accessible for tech-driven e-commerce ventures[1][2].

However, challenges persist:

• Specialty Occupation Compliance: E-commerce roles must demonstrate complexity requiring advanced expertise. For example, a founder developing AI-driven logistics software could qualify, but passive management of an online store might not[2][7][10].
• Structural Formalization: Startups must establish corporate governance mechanisms (e.g., independent boards) to validate the employer-employee relationship, a hurdle for solopreneurs[8][12].

Impact on E-Commerce Owners

1. Operational Flexibility

E-commerce founders on H-1B visas can now legally:

• Design and Develop Digital Platforms: Roles involving coding, UX/UI design, or algorithmic optimization qualify as specialty occupations, provided the founder holds a relevant degree[2][10].
• Hire and Manage Teams: Founders can recruit U.S.-based employees, though direct supervision requires adherence to H-1B wage and reporting standards[7][10].
• Secure Funding: While fundraising is permitted, founders cannot divert H-1B salaries to business investments without violating visa terms[10][13].

2. Compliance Risks

• Prevailing Wage Requirements: Startups must pay founders salaries matching Department of Labor wage levels for their role and location. For instance, a Chief Technology Officer in San Francisco must earn at least $156,000 annually[9][10].
• Audit Scrutiny: USCIS may require detailed business plans, financial records, and organizational charts to verify the legitimacy of self-sponsored petitions[4][7].

3. Long-Term Pathways

Successful H-1B entrepreneurs may transition to permanent residency via:

• EB-2 NIW (National Interest Waiver): For ventures demonstrating U.S. economic impact.
• EB-1C (Multinational Executive): If expanding operations internationally[10][13].

H1B1 Visa Holders: Limited Impact

The H1B1 visa, designated for nationals of Singapore and Chile, operates under separate regulations and quotas. Key distinctions include:

• Employment Restrictions: H1B1 visas are tied to specific employers, with no provisions for self-sponsorship or entrepreneurial activities[14].
• Policy Non-Applicability: The 2025 H-1B reforms do not extend to H1B1, leaving its holders reliant on traditional employer sponsorship[14].

Thus, H1B1 entrepreneurs seeking to launch U.S. businesses must either:

• Secure Employer Sponsorship: Through a third-party company.
• Pursue Alternative Visas: Such as the EB-5 or O-1 (for extraordinary ability)[10][14].

Conclusion

The 2025 H-1B modernization rule unlocks unprecedented opportunities for e-commerce entrepreneurs by legitimizing self-sponsorship and reducing reliance on external employers. However, stringent compliance requirements around specialty occupations and corporate governance necessitate meticulous planning. For H1B1 holders, the reforms offer no direct benefits, underscoring the need to explore alternative immigration pathways. As USCIS implements these changes, close collaboration with immigration attorneys will remain critical to navigating evolving regulatory landscapes[2][7][12].

Sources [1] New H-1B visa rule: Entrepreneurs can get visa sponsored by their ... https://www.business-standard.com/finance/personal-finance/new-h-1b-visa-rule-entrepreneurs-can-get-visa-sponsored-by-their-own-firm-124122000701_1.html [2] H1B for Entrepreneurs and Startups (Self-Sponsorship) https://www.lawfirm4immigrants.com/h1b-for-entrepreneurs-and-startups/ [3] Top 4 New H1B Rules 2025 (startup entrepreneur self-sponsorship ... https://www.youtube.com/watch?v=NEVfWpzZf8U [4] Sponsor Your Own H-1B Visas: Viability and New 2025 Rules https://cptdog.com/blogs/sponsor-your-own-h-1b-visas-viability-and-new-2025-rules [5] Can an H1B visa holder start e-commerce business in the US? https://www.myusacorporation.com/answers/can-an-h1b-visa-holder-start-e-commerce-business-in-the-us/ [6] Can an H-1B Holder Start a Business? - Herman Legal Group https://www.lawfirm4immigrants.com/h-1b-holder-start-a-business/ [7] New Regulation Simplifies Process for H1B Entrepreneurs https://www.murthy.com/2025/01/27/new-regulation-simplifies-process-for-h1b-entrepreneurs/ [8] Can my own company sponsor me for an H-1B visa? - Boundless https://www.boundless.com/faqs/can-own-company-sponsor-me-h1b/ [9] Can You Start Your Own Business While on an H-1B Visa? - Deel https://www.deel.com/blog/starting-your-own-business-h1b-visa/ [10] Starting a Business as an H1B Startup Founder - UpCounsel https://www.upcounsel.com/starting-a-company-on-h1b [11] Entrepreneurs can get H-1B visa sponsored by their own company https://timesofindia.indiatimes.com/nri/h-1b-modernisation-rule-entrepreneurs-can-get-h-1b-visa-sponsored-by-their-own-company/articleshow/116428095.cms [12] H-1B Visa: Self-Employed - Law Offices of Jacob J. Sapochnick https://www.h1b.biz/h-1b-visa-self-employed.html [13] H1B Hustle: Immigrant Founders' Playbook for U.S. Visa Success https://thevertical.la/immigration/h1b-hustle-immigrant-founders-playbook-for-u-s-visa-success/ [14] Which companies have the most employees working on an H-1B visa? https://www.cbsnews.com/news/elon-musk-h1b-work-visa-tesla-technology/ [15] [PDF] The Effects of High-Skilled Immigration Policy on Firms https://gspp.berkeley.edu/assets/uploads/research/pdf/h1b.pdf [16] H-1B, H-1B1 and E-3 Specialty (Professional) Workers https://www.dol.gov/agencies/eta/foreign-labor/programs/h-1b [17] The H-1B Visa Program and Its Impact on the U.S. Economy https://www.americanimmigrationcouncil.org/research/h1b-visa-program-fact-sheet [18] Options for Alien Entrepreneurs to Work in the United States - USCIS https://www.uscis.gov/working-in-the-united-states/options-for-alien-entrepreneurs-to-work-in-the-united-states [19] I am on an H1B visa, but I want to open a business in the U.S. What ... https://stelmakhlaw.com/blog/opening-a-business-on-h1b/ [20] H1B Visa Entrepreneurs | self-sponsored H-1B Visa https://www.simonebertollini.com/immigration/employment/h1b-entrepreneurs/ [21] How H1B Visa Holders Can Start A Business In The U.S. - LinkedIn https://www.linkedin.com/pulse/from-h1b-visa-business-owner-how-holders-can-start-us-varghese-esq--uu1ue [22] International Entrepreneur Rule - USCIS https://www.uscis.gov/working-in-the-united-states/international-entrepreneur-rule [23] Can H-1B and H-4 Visa Holders Start a Business?-New - Chugh, LLP https://www.chugh.com/news/h-1b-visas-and-entrepreneurship-can-h-1b-and-h-4-visa-holders-start-a-business [24] H-1B VISAS FOR VISITING ENTREPRENEURS & STARTUP ... https://cbkimmigration.com/employment-based-immigration/h-1b-visas-for-specialty-occupations/h-1b-visas-for-specialty-occupations-h-1b-visas-visiting-entrepreneurs-startup-companies/ [25] H-1B Specialty Occupations - USCIS https://www.uscis.gov/working-in-the-united-states/h-1b-specialty-occupations [26] Workers in Professional and Specialty Occupations (H-1B, H-1B1 ... https://webapps.dol.gov/elaws/elg/h1b.htm [27] H-1B Cap Season - USCIS https://www.uscis.gov/working-in-the-united-states/temporary-workers/h-1b-specialty-occupations/h-1b-cap-season [28] Project 2025 and Work-Based Immigration: Repercussions of H-1B ... https://www.rnlawgroup.com/project-2025-and-work-based-immigration-repercussions-of-h-1b-visa-changes/ [29] Biden's USICS Welcomes Entrepreneurs Through the H-1B and O ... https://www.lexisnexis.com/community/insights/legal/immigration/b/outsidenews/posts/biden-s-usics-welcomes-entrepreneurs-through-the-h-1b-and-o-visas-will-trump-do-the-same [30] Times of India: H1-B Modernisation Rules for Entrepreneurs and ... https://www.fragomen.com/insights/toi-h1-b-modernisation-rules-for-entrepreneurs-and-defining-eligible-occupations.html [31] DHS Announces H-1B Modernization Final Rule to Improve ... - USCIS https://www.uscis.gov/newsroom/stakeholder-messages/dhs-announces-h-1b-modernization-final-rule-to-improve-program-integrity-and-efficiency [32] H1B can start their own businesses under the new rules now?? https://www.reddit.com/r/h1b/comments/1hgxid1/h1b_can_start_their_own_businesses_under_the_new/ [33] Biden Administration Reshapes H-1B Visa Rules - Fisher Phillips https://www.fisherphillips.com/en/news-insights/biden-administration-reshapes-h-1b-visa-rules.html [34] Positive Changes for Business Immigration: The H-1B ... https://www.hklaw.com/en/insights/publications/2025/01/positive-changes-for-business-immigration-the-h-1b-modernization-rule [35] The future of H-1B under a potential second Trump term - B A L https://www.bal.com/perspectives/the-future-of-h1b-under-a-potential-second-trump-term/ [36] Recent H1B Visa Changes Offer Positive Signs For Future Applicants https://www.businessbecause.com/news/in-the-news/9657/h1b-visa-changes-positive-signs [37] I sponsored my own H1B Visa - LinkedIn https://www.linkedin.com/pulse/i-sponsored-my-own-h1b-visa-sid-sarasvati-ekxqc [38] H-1B Modernization: Biden's Final Move, Trump's First Challenge? https://www.mayerbrown.com/en/insights/publications/2024/12/h1b-modernization-bidens-final-move-trump-first-challenge [39] DHS H-1B Modernization | Grossman Young & Hammond https://www.grossmanyoung.com/blog/dhs-proposes-modernization-of-h-1b-visa-program-to-enhance-flexibility-and-integrity/ [40] FAQs for Individuals in H-1B Nonimmigrant Status - USCIS https://www.uscis.gov/working-in-the-united-states/temporary-workers/h-1b-specialty-occupations/faqs-for-individuals-in-h-1b-nonimmigrant-status [41] Think Immigration: The H-1B Nonimmigrant Visa Process https://www.aila.org/library/think-immigration-the-h-1b-nonimmigrant-visa-process-key-concepts-and-considerations