Starting a Business in
the US: Immigration
Issues for Students
William A. Stock, Esq.
Klasko, Rulon, Stock & Seltzer, LLP
Philadelphia
New York
1800 JFK Blvd. Suite 1700
Philadelphia, PA 19103
215.825.8600
317 Madison Ave. Suite 1518
New York, NY 10017
212.796.8840
www.klaskolaw.com
wstock@klaskolaw.com
William A. Stock, Esq.

William A. Stock is a founding partner of Klasko, Rulon, Stock & Seltzer, LLP and
has been providing immigration assistance and solutions to leading universities,
research institutions, hospitals, multinational corporations, and individuals for nearly
15 years.

Bill is featured in The Chambers Global Guide, The Best Lawyers in America, and
other guides to prominent attorneys. He is active in the American Immigration
Lawyers Association on a national level, and in 2000 he received AILA’s Joseph
Minsky Award, given to the lawyer under age 35 who has made the most
outstanding contributions to the field of immigration law.

Bill is a graduate of the University of Minnesota Law School and is a frequent author
and lecturer on business-related immigration topics and currently is an Adjunct
Faculty Member at Villanova University School of Law.
Klasko, Rulon, Stock & Seltzer, LLP
Starting a Business in the US:
Issues for International Students
Agenda
Starting a business in F-1 Status
 How much work can be done "on campus"
 Investing in a business
 Limitations on Volunteering
 Nonimmigrant Visas for Entrepreneurs
 Investment-based Permanent Residence

Klasko, Rulon, Stock & Seltzer, LLP
Starting a Business in F-1 Status

Definition of “Employment”: Performing
Services in Exchange for Remuneration
(such as the expectation of profits)
“Self-employment” is still “employment”
 Drawing Lines regarding “Employment:”

 Student
sells her car after using it: OK
 Student buys a car at auction to sell it at a
profit: “employment.”
Klasko, Rulon, Stock & Seltzer, LLP
Starting a Business in F-1 Status

Using “Practical Training” to Start a
Business
 Curricular
Practical Training: Business must
be tied to a school project (and ends with the
project)
 Optional Practical Training: Must be
authorized as employment in the field of
study, causing difficulty in practice if not law
Klasko, Rulon, Stock & Seltzer, LLP
“On Campus” Work


Up to 20 hours per week while school in session
“On campus” definition
 Employment
BY the university
 Employment for on-campus business serving the
students (e.g. bookstore, on-campus Starbuck’s)
 Must be authorized by school

Too-clever ideas:

Running the business out of a dorm room
 Web-based or remote work
Klasko, Rulon, Stock & Seltzer, LLP
Investing in a Business

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“Investing” is not “employment”
“Overseeing Investment” is arguably not
“employment”
“Providing Services” is not “Investing”
Investing in a small business is not different
than investing in a big business, but does not
normally meet the student’s goal of actively
participating in the business.
Klasko, Rulon, Stock & Seltzer, LLP
Limitations on Volunteering

Employer Limitations:
 Not
Normally a Staff Position
 Work actually done must be paid, if “employment”
 Unpaid Internships OK, if authorized by school

Employee Limitations:
 Future
payment (or promise of a job) is
“remuneration”
 Forgoing payment does not turn “employment”
into “volunteering”
Klasko, Rulon, Stock & Seltzer, LLP
F-1 Employment Issues Summary
Be Conservative When Planning Your
Conduct: Avoid Even Looking Like You
Are “Employed”
 Remember That “I Probably Won’t Get
Caught” Does Not Mean “My
Employment Is Authorized”

Klasko, Rulon, Stock & Seltzer, LLP
Visa Options for Entrepreneurs

H-1B For Your Own Company
 Companies
are separate from their owners,
and an “owner” can also be an “employee”
 Issue of H-1B “cap”
 Employment must be in “specialty
occupation” (Bach. Degree required for job)
 “Small Company” Issue: enough revenue to
pay required wage
Klasko, Rulon, Stock & Seltzer, LLP
Visa Options for Entrepreneurs

E-1 Treaty Trader



E-2 Treaty Investor

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
“Substantial” import or export
Treaty country nationality
“Substantial” investment
Treaty country nationality
L-1 Intracompany Transferee



Related company (equity ownership)
One year employment overseas
Managerial or specialized knowledge
Klasko, Rulon, Stock & Seltzer, LLP
Investment-Based Permanent Residence


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
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$500,000 or $1,000,000
Own business or regional center
New business or expand existing business
Create 10 jobs within two years
Must document source of funds
Conditional residence, petition to become
permanent after 2 years
Klasko, Rulon, Stock & Seltzer, LLP
Questions ?
Klasko, Rulon, Stock & Seltzer, LLP
For Further Information
William A. Stock, Esq.
Klasko, Rulon, Stock and Seltzer, LLP
wstock@klaskolaw.com
215-825-8600 (Philadelphia)
212-796-8840 (New York)
www.klaskolaw.com
Klasko, Rulon, Stock & Seltzer, LLP