US Startup Visa Guide for Entrepreneurs [2024]

The United States has long been a beacon for innovative entrepreneurs worldwide, offering the best opportunities for startups to thrive. For international founders looking to tap into this market, understanding the choices of US startup visas is crucial.

These visas provide a pathway for foreign entrepreneurs to establish and grow their businesses on American soil. From the well-known H1B to the more specialized International Entrepreneur Rule, each visa type offers unique opportunities and challenges.

In this comprehensive guide, we’ll explore the various US startup visa options, their benefits, requirements, and application processes. We’ll also delve into essential considerations for growing your startup in the US, such as non-equity-based financing, helping you navigate this exciting journey.

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What is a US Startup Visa?

A US startup visa is a category of visas designed to encourage foreign entrepreneurs to establish and grow their businesses in the United States. While there isn’t a single, dedicated “startup visa” in the US immigration system, several visa options cater to entrepreneurs and business founders.

These visas provide a legal pathway for international innovators to enter the US market, contribute to the economy, and potentially achieve permanent residency.

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Benefits of Using a US Startup Visa as an Entrepreneur

Opting for a US startup visa can offer numerous advantages for international entrepreneurs:

• Access to the world’s largest economy. The US market provides unparalleled opportunities for growth and scaling.
• Robust startup ecosystem. Benefit from a well-developed network of investors, accelerators, and tech hubs.
• Talent pool. Tap into a diverse and highly skilled workforce to build your team.
• Legal protection. Enjoy strong intellectual property rights and a stable legal system.
• Funding opportunities. Access to venture capital, angel investors, and other funding sources.
• Networking. Connect with industry leaders and potential partners in your field.
• Path to permanent residency. Many startup visas offer a route to green cards and long-term settlement.
• Innovation-friendly environment. Leverage cutting-edge research and development facilities.
• Global credibility. Gain international recognition and credibility for your startup.

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Types of US Startup Visa

The United States offers several visa options that can be suitable for entrepreneurs looking to start or expand their businesses. Each visa type has its own set of requirements, benefits, and limitations.

Here are seven common options:

H-1B

The H-1B visa is primarily for specialty occupations but can be used by startup founders in certain circumstances. It allows US companies to employ foreign workers in specialized fields.

Requirements:

• Bachelor’s degree or higher in the specific specialty
• Job offer from a US employer in a specialty occupation
• The position must typically require a bachelor’s degree
• The applicant must possess the required degree or its equivalent

Fees:

• Base filing fee: $460
• American Competitiveness and Workforce Improvement Act of 1998 (ACWIA) fee: $750 (for employers with 1-25 full-time employees) or $1,500 (for employers with 26+ full-time employees)
• Fraud Prevention and Detection fee: $500
• Optional Premium Processing fee: $2,500

Application process:

1. Employer files Labor Condition Application (LCA) with the Department of Labor

2. Once LCA is certified, the employer files Form I-129 with USCIS

3. If approved, the applicant applies for an H-1B visa at a US embassy or consulate

4. Attend visa interview and provide required documentation

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O-1

The O-1 visa is for individuals with extraordinary ability in sciences, arts, education, business, or athletics. It can be a good fit for highly accomplished entrepreneurs.

Requirements:

• Demonstrate extraordinary ability in their field
• Provide extensive documentation of national or international acclaim
• Have a job offer or contract to work in their area of expertise in the US

Fees:

• Base filing fee: $460
• Optional Premium Processing fee: $2,500

Application process:

1. Employer or agent files Form I-129 with USCIS

2. If approved, applicant applies for O1 visa at a US embassy or consulate

3. Attend visa interview and provide required documentation

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E-2 Visa

The E-2 visa is for entrepreneurs from countries with which the US has a trade treaty. It allows individuals to enter and work in the US based on a substantial investment in a US business.

Requirements:

• Be a national of a country with which the US maintains a treaty of commerce and navigation
• Have invested, or be actively in the process of investing, a substantial amount of capital in a US business
• Be seeking to enter the US solely to develop and direct the investment enterprise

Fees:

• Nonimmigrant visa application processing fee: $205
• Issuance fee (if visa is approved): varies by nationality

Application process:

1. Prepare a comprehensive business plan and gather supporting documents

2. File Form DS-160 online

3. Pay the visa fee

4. Schedule and attend a visa interview at a US embassy or consulate

5. Provide required documentation at the interview

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EB-5 Visa

The EB-5 visa is designed for foreign investors who make a substantial investment in a US business that creates jobs for American workers.

Requirements:

• Invest $1.8 million in a new commercial enterprise (or $900,000 in a targeted employment area)
• Create or preserve at least 10 full-time jobs for qualifying US workers
• Demonstrate that the investment funds were obtained through lawful means

Fees:

• Form I-526 filing fee: $3,675
• Biometric services fee: $85
• Form I-485 filing fee: $1,140 (if adjusting status in the US)

Application process:

1. File Form I-526 with USCIS

2. Upon approval, file DS-260 with the National Visa Center (if abroad) or Form I-485 (if in the US)

3. Attend visa interview at a US embassy or consulate (if abroad)

4. Enter the US and start the two-year conditional permanent residency

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EB1C Visa

The EB1C visa is for multinational executives or managers transferring to a US office of the same employer or its affiliate.

Requirements:

• Have been employed outside the US for at least 1 year in the 3 years preceding the petition
• The employment must have been in an executive or managerial capacity
• The US employer must have been doing business for at least 1 year
• The applicant must be coming to work in an executive or managerial capacity

Fees:

• Form I-140 filing fee: $700
• Premium Processing fee (optional): $2,500

Application process:

1. Employer files Form I-140 with USCIS

2. Upon approval, file DS-260 with the National Visa Center (if abroad) or Form I-485 (if in the US)

3. Attend visa interview at a US embassy or consulate (if abroad)

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L-1A Visa

The L-1A visa allows multinational companies to transfer executives, managers, or specialized knowledge employees to a US office.

Requirements:

• Have worked for a qualifying organization abroad for at least 1 continuous year within the 3 years immediately preceding the petition
• Be coming to the US to work in an executive, managerial, or specialized knowledge capacity
• The US and foreign employers must have a qualifying relationship

Fees:

• Base filing fee for Form I-129: $460
• Fraud Prevention and Detection fee: $500
• ACWIA fee: $750 (1-25 employees) or $1,500 (26+ employees)

Application process:

1. Employer files Form I-129 with USCIS

2. If approved, applicant applies for L-1A visa at a US embassy or consulate

3. Attend visa interview and provide required documentation

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International Entrepreneur Rule

While not a visa, the International Entrepreneur Rule allows certain foreign entrepreneurs to be considered for parole (temporary permission to be in the US) to start and grow their businesses.

Requirements:

• The startup was formed within 5 years of the application
• The applicant has at least 10% ownership in the startup
• The startup has received at least $250,000 from qualified US investors or $100,000 in government grants
• Alternatively, partially meet the above criteria and provide additional evidence of the startup’s potential for rapid growth and job creation

Fees:

• Form I-941 filing fee: $1,200
• Biometric services fee: $85

Application process:

1. File Form I-941 with USCIS

2. If approved, file Form I-131 to request travel documentation

3. Enter the US under parole status

Note: This rule has faced some uncertainty in recent years, so it’s important to check the current status here before applying.

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What else to consider when growing your US startup

While securing the right visa is a crucial step for international entrepreneurs, it’s just the beginning of your journey in the US market. To ensure your startup’s success, you’ll need to navigate several other important aspects of doing business in the United States.

Let’s explore some key considerations that will help you establish a strong foundation for your venture.

1. Accessing startup funding

Securing adequate funding is often critical for startup growth. The US offers a diverse range of funding options for entrepreneurs. The country is home to the world’s largest venture capital ecosystem, making it an attractive destination for startups seeking substantial investment.

Research and connect with VC firms that specialize in your industry or stage of growth. Networking events, startup conferences, and accelerator programs can be excellent avenues to meet potential investors.

For early-stage funding and valuable mentorship, consider approaching angel investors or angel networks. Platforms like AngelList can help you connect with these individual investors. Crowdfunding is another viable option, with platforms like Kickstarter or Indiegogo helping you raise funds while validating your product concept. For equity crowdfunding, consider platforms like SeedInvest or Republic.

Don’t overlook government grants, particularly if your startup operates in fields like scientific research or clean energy. These non-dilutive funding sources can be particularly attractive. For SaaS startups or businesses with predictable revenue streams, revenue-based financing from companies like Efficient Capital Labs (ECL) provides an excellent alternative to traditional equity financing.

With a focus on simplicity and transparency, ECL provides businesses up to $2 million in funding with a streamlined application process and financing in under three days. Plus, these funds come from their $100M debt facility, so you know exactly where your money is coming from.

ECL provides funding in both USD and INR, catering to businesses operating in multiple countries. Its cross-border, multi-geography underwriting capability allows them to evaluate your business holistically, considering performance across different markets.

Learn more about ECL

2. Creating US bank accounts

Setting up a US bank account is essential for managing your startup’s finances efficiently. Begin by researching banks that cater to international customers and startups. Some options include Silicon Valley Bank, Mercury, or Brex. When opening an account, you’ll typically need your passport, visa documentation, proof of address, and business formation documents.

Before approaching banks, obtain an Employer Identification Number (EIN) from the IRS, which is necessary for opening a business bank account. Consider online-only banks, as they often offer more flexible options for international entrepreneurs and may have lower fees. It’s also wise to set up both business checking and savings accounts to manage different aspects of your finances effectively.

3. Managing accommodations and logistics

Finding suitable living and working spaces is crucial for your comfort and productivity. Start by researching different neighborhoods that align with your budget and lifestyle. Consider short-term rentals initially to give yourself flexibility as you settle into the new environment.

For office space, co-working facilities can provide cost-effective solutions and valuable networking opportunities. Companies like WeWork or Regus offer spaces in most major US cities. Familiarize yourself with local public transportation options, and in some cities, you might need to consider purchasing or leasing a car.

Building a professional network is crucial. Join local entrepreneur groups or attend meetups to connect with peers and learn about local resources. Additionally, find a reputable lawyer who specializes in startup and immigration law to help navigate any legal challenges that may arise as you establish your business.

4. Setting up healthcare

Understanding and securing proper healthcare coverage is vital in the US. Start by exploring plans offered through the Health Insurance Marketplace or private insurers. Keep in mind that some visas may require proof of health insurance. If your startup has employees, consider offering health insurance as a benefit, as this can help attract and retain talent.

Consider opening a Health Savings Account (HSA), which allows you to save money tax-free for medical expenses. Many healthcare providers now offer virtual consultations, which can be convenient for busy entrepreneurs. Lastly, consider implementing wellness initiatives in your startup to promote health and potentially reduce insurance costs.

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FAQs on US Startup Visas

How do I get a US visa to start a business?

To get a US visa for starting a business, you’ll need to choose the most appropriate visa category based on your situation. Common options include the E-2 visa for treaty investors, the L-1A visa for intracompany transferees, or the O-1 visa for individuals with extraordinary ability.

Each visa has specific requirements, but generally, you’ll need to demonstrate a significant investment or exceptional skills, prepare a comprehensive business plan, and follow the application process for your chosen visa category. It’s often beneficial to consult with an immigration attorney to determine the best option for your circumstances.

Can I get a visa if I own a business in the US?

Yes, owning a business in the US can potentially qualify you for certain visas. The E-2 visa is particularly relevant for business owners who have made a substantial investment in a US enterprise.

If you’re transferring from a foreign branch of your company to the US branch, you might qualify for an L-1 visa. For those with exceptional achievements in business, the O-1 visa could be an option. However, simply owning a business doesn’t guarantee visa approval; you’ll need to meet all the specific requirements of the visa category you’re applying for.

Which is better, EB2 or EB-5?

The choice between EB-2 and EB-5 visas depends on your individual circumstances. The EB-2 visa is for professionals with advanced degrees or exceptional ability, while the EB-5 is an investor visa.

The EB-2 requires a job offer and labor certification (unless you qualify for a national interest waiver), but doesn’t require a large investment. The EB-5, on the other hand, requires a substantial investment (typically $900,000 to $1.8 million) but offers a more direct path to permanent residency.

The EB-5 may be “better” if you have the capital to invest and want a more straightforward route to a green card, while the EB-2 might be preferable if you have advanced qualifications but not significant capital to invest.

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Scale your US startup

As you embark on your journey to establish and grow your startup in the United States, remember that securing the right visa is just the first step. The US market offers unparalleled opportunities for innovation and growth, but it also comes with unique challenges. From navigating the complex visa process to securing funding, setting up operations, and building a strong team, each stage requires careful planning and execution.

While this guide provides a comprehensive overview of US startup visas and key considerations for growing your business, it’s crucial to seek personalized advice for your specific situation. Immigration laws and business regulations can be complex and subject to change, so consulting with legal and financial experts is always recommended.

As you scale your startup, you’ll likely need access to capital to fuel your growth. This is where ECL can play a crucial role in your success story. ECL specializes in providing non-dilutive, revenue-based financing for B2B SaaS startups and businesses with recurring revenue models. Unlike traditional funding sources that may require giving up equity or control, ECL offers revenue-based financing that aligns with your business growth.

With ECL, you can access up to $2 million in funding within 72 hours–allowing you to seize opportunities quickly and scale your operations efficiently. Whether you need capital for marketing, product development, or expanding your team, ECL’s flexible funding model can provide the resources you need without the constraints of traditional startup loans.

Get started with ECL today‍