The H-4 visa is a dependent visa issued to the immediate family members of H-1B visa holders, allowing spouses and children to live in the United States. In recent years, many H-4 visa holders have developed a strong interest in starting their own businesses, driven by the country’s vibrant startup ecosystem, access to capital, and culture of innovation. Building a business can provide long-term financial independence and even open doors to future immigration opportunities.

However, there is a key challenge: H-4 visa holders face restrictions on employment and active business management unless they secure additional authorization such as an Employment Authorization Document (EAD). These limitations mean that while you may be able to form a company or invest, directly working for or managing the business can require extra steps or a change of visa status. This guide provides a comprehensive roadmap for aspiring entrepreneurs on H-4 visas. 

Understanding the H-4 Visa and Employment Authorization

To engage in employment or run a company directly, most H-4 visa holders need to apply for an Employment Authorization Document (EAD). This work permit, issued by U.S. Citizenship and Immigration Services (USCIS), allows them to take jobs, start and manage a business, or freelance legally. Without an EAD, H-4 holders may still own a business or invest passively, but they cannot participate in the day-to-day operations, make executive decisions, or receive a salary from that company.

Understanding these distinctions is critical before taking any entrepreneurial step. It ensures that your business activities remain compliant with U.S. immigration law, protecting both your current visa status and any future applications for permanent residency or alternative entrepreneur visas.

What is an H-4 Visa?

The H-4 visa is a non-immigrant visa that allows the immediate family members (spouses and children under 21) of H-1B visa holders to live in the United States. While the primary H-1B visa holder is authorized to work in the U.S. in a specialty occupation, the H-4 visa holder traditionally does not have work authorization. This means that if you are on an H-4 visa, you are not automatically allowed to work unless you meet specific conditions.

However, there is a pathway for H-4 visa holders to gain work authorization through an Employment Authorization Document (EAD). This document allows H-4 visa holders to work in the U.S., including owning and running a business.

Employment Authorization Document (EAD) for H-4 Visa Holders

To open and run a business in the U.S. as an H-4 visa holder, obtaining an Employment Authorization Document (EAD) is essential. The EAD provides the legal right to work, including engaging in entrepreneurial activities.

Eligibility Criteria for EAD

The eligibility to apply for an EAD depends on specific circumstances. To qualify for an EAD as an H-4 visa holder, the primary H-1B visa holder must have an approved Form I-140 (Immigrant Petition for Alien Worker) or meet certain conditions that extend their H-1B status beyond the six-year limit. This is crucial, as it allows you to legally work and start your business while your spouse continues to work on their H-1B visa.

Obtaining an EAD allows H-4 visa holders the freedom to legally work, whether it’s through an existing job or by launching a new business. However, not all H-4 visa holders are eligible, so it's important to review your situation with an immigration attorney to ensure you meet the requirements.

Temporary and Permanent Visa Pathways for Entrepreneurs

For H-4 visa holders who want to actively build and manage a U.S. business, securing a more flexible immigration status is often the next critical step. The United States offers a variety of temporary and permanent visa options designed for entrepreneurs. Each pathway comes with distinct eligibility rules, investment expectations, and benefits.

Temporary Visa Options

Temporary visas let you live and work in the U.S. for a limited period, with opportunities for renewal or transition to permanent residency.

H-1B – Specialty Occupations in Your Own Startup

• Eligibility: Bachelor’s degree (or equivalent) in a specialized field and a legitimate employer–employee relationship with your startup.
• Benefits: Up to six years of renewable work authorization and a pathway to a green card.
• Processing Time: Around 6–8 months, with selection through the annual H-1B lottery.

O-1 – Extraordinary Ability in Business or Sciences

• Eligibility: National or international recognition for outstanding achievements—such as patents, publications, or significant press coverage.
• Benefits: Three-year initial stay, renewable in one-year increments; ideal for high-impact startup founders.
• Processing Time: Typically 2–3 months.

E-2 – Investor Visa for Treaty Countries

• Eligibility: Citizen of a country with an investment treaty with the U.S. and a “substantial investment” (often $100,000 or more) in a U.S. business you will direct and develop.
• Benefits: Renewable indefinitely as long as the business remains active and profitable.
• Processing Time: Usually a few weeks to a few months depending on the consulate.

L-1 – Intracompany Transferee for International Entrepreneurs

• Eligibility: At least one year of employment with a foreign company in an executive, managerial, or specialized-knowledge role and plans to open a U.S. branch or subsidiary.
• Benefits: Enables you to manage the new U.S. office and can lead to an EB-1C green card.
• Processing Time: Around 2–6 months, with premium processing available.

Permanent Visa Options

Permanent visas provide long-term stability and allow you to live and work in the U.S. without time restrictions.

EB-2 National Interest Waiver (NIW)

• Eligibility: Advanced degree or exceptional ability, plus evidence that your business benefits U.S. national interests (e.g., job creation, technological innovation).
• Benefits: Ability to self-petition without a U.S. employer sponsor.
• Processing Time: Typically 12–18 months, with premium processing available in many cases.

EB-5 Immigrant Investor Program

• Eligibility: Minimum investment of $800,000 in a targeted employment area or $1,050,000 elsewhere, along with the creation of at least 10 full-time U.S. jobs.
• Benefits: Direct pathway to permanent residency for you, your spouse, and dependent children.
• Processing Time: Roughly 18–30 months, depending on project details and USCIS backlog.

Why These Pathways Matter

Exploring these visa options allows H-4 visa holders to move beyond dependent status and fully participate in their ventures. Whether you begin with a temporary visa like H-1B or O-1 to kickstart operations or aim straight for a permanent route like EB-2 NIW or EB-5, each pathway offers unique advantages, timelines, and investment requirements. Careful planning and guidance from an experienced immigration attorney are essential to choose the best fit for your entrepreneurial goals.

Legal Considerations for Starting a Business in the USA

Launching a business in the United States as an H-4 visa holder—or through any entrepreneurial visa pathway—requires careful attention to legal and regulatory requirements. U.S. business law is a mix of federal, state, and local rules, and staying compliant from the start will protect both your company and your immigration status.

Ownership vs. Active Participation

One of the first things to understand when starting a business on an H-4 visa is the distinction between ownership and active participation. While H-4 EAD holders are legally allowed to own a business in the U.S., actively managing or working within the business can have legal implications if not done properly.

As an H-4 visa holder with an EAD, you can own your business and make key decisions. However, the specific rules around your involvement in day-to-day operations should be closely examined. While you may have the ability to manage your business, certain activities, such as working more than the allowable hours or engaging in specific types of work without proper authorization, could lead to complications with your visa status.

To avoid potential issues, it’s highly recommended that you consult with an immigration attorney to ensure that you are not violating the terms of your visa by taking on too much active involvement in the business. They can help clarify what activities are permissible under your EAD and provide guidance on the best way to run your business while staying in compliance with your visa conditions.

State-Specific Regulations

Another critical aspect of starting a business in the U.S. as an H-4 visa holder is understanding that business laws and regulations can vary significantly from state to state. This means that the process of registering your business, obtaining permits, and complying with tax laws will depend on the state where you plan to operate your business.

Some states have more streamlined procedures for small businesses, while others might require extensive documentation or additional steps. For example, California has certain licensing requirements for service-based businesses, while Texas has simpler registration processes. Additionally, local regulations in your city or county could impose additional requirements, such as zoning laws or specific business permits.

Before proceeding, it’s essential to research the state-specific regulations for the area where you plan to start your business. This will ensure that you meet all local, state, and federal requirements and avoid unnecessary delays.

Understanding U.S. Financial Systems and Safety Nets

As you build your business, it’s important to understand not just taxes and banking, but also broader aspects of the U.S. financial support system. While most H-4 visa holders won’t qualify for federal benefits like Social Security Disability Insurance (SSDI) unless they’ve previously worked and contributed to the system, knowing about such programs and how to apply for disability may be useful if your visa status changes or if you're exploring permanent residency.

Steps to Start a Business

Starting a business in the United States involves several structured steps to ensure legal compliance and long-term success. Begin with market research to validate your business idea—understanding your target customers, competition, and pricing will help you create a strong foundation. From there, develop a comprehensive business plan that outlines your goals, funding strategy, and projected finances. A solid plan is essential not only for operations but also for visa applications, investors, or potential partners.

Choose a Business Structure

Choosing the right business structure is one of the most important decisions you’ll make when starting a business. Your business structure will determine your taxes, personal liability, and how you can run your company. As an H-4 visa holder, the most common business structures to consider are:

• Sole Proprietorship: This is the simplest structure where you, as the owner, are responsible for everything. It’s ideal for small, low-risk businesses. However, the downside is that you have personal liability for any business debts or legal issues.
• Limited Liability Company (LLC): An LLC is a more flexible structure that separates your personal and business liabilities. This means your personal assets are protected if the business faces legal action. It’s one of the most popular structures for small business owners because of the protection it offers and the flexibility it provides in taxation.
• Corporation: A corporation is a more formal structure that is suitable for larger businesses or those looking to raise capital. It provides a layer of liability protection and allows you to issue shares of stock. However, it also comes with more complex management and tax requirements.

When choosing a business structure, consider factors like liability protection, tax implications, and how much control you want over your business operations. For many small businesses, starting with an LLC is a good choice, as it provides a balance of flexibility and protection.

Register Your Business

Once you've selected your business structure, the next step is to register your business. The registration process will vary depending on the state, but generally, it involves:

• Choosing a Business Name: Your business name should be unique and reflect your services. Make sure to check with your state’s business registration office to ensure that the name is available.
• Filing the Necessary Forms: Depending on your business structure, you’ll need to file certain documents with your state government. For example, if you’re forming an LLC, you'll need to file Articles of Organization. If you're starting a corporation, you'll file Articles of Incorporation.
• Obtaining Licenses and Permits: Many businesses require licenses or permits to operate legally. These vary depending on your location and the type of business you’re starting. For instance, service businesses may need specific professional licenses, while others might need health department permits.

Make sure to research your state’s specific requirements and file the necessary paperwork to ensure that your business is legally recognized and compliant.

Obtain an Employer Identification Number (EIN)

An Employer Identification Number (EIN), sometimes referred to as a Federal Tax ID Number, is necessary for almost all businesses, even if you don’t plan to hire employees. You’ll need an EIN to file taxes, open a business bank account, and apply for permits.

Getting an EIN is easy and free. You can apply online through the IRS website, and once you’re approved, you’ll receive your EIN immediately. This number serves as your business’s identification for tax purposes and helps ensure that your business complies with federal tax laws.

Open a Business Bank Account

Opening a separate business bank account is essential for keeping your personal and business finances distinct. A business account will help you track income and expenses, manage cash flow, and simplify tax filing. Many banks require your EIN and business registration documents to open an account.

Having a business bank account not only helps with organizing finances but also adds a layer of professionalism to your business, making it easier to attract customers and handle payments.

The International Entrepreneur Rule (IER) as a Pathway

The International Entrepreneur Rule (IER) is a U.S. immigration policy specifically designed to help foreign entrepreneurs launch and grow high-potential startups in the United States. Unlike traditional work visas, the IER provides a unique, flexible route for founders who can demonstrate that their businesses will create jobs, attract investment, and drive innovation in the U.S. economy.

Eligibility Requirements

To qualify for IER, applicants must meet several key criteria:

• Qualified Investment or Grant: Secure at least $250,000 in qualified U.S. private investment from established venture capital firms, angel investors, or similar entities. Alternatively, you can qualify with $100,000 in government grants or awards from U.S. federal, state, or local agencies.
• Growth and Job Creation Potential: Present strong evidence—such as a business plan, product pipeline, or early traction—showing the startup has the potential for rapid growth and significant job creation.
• Substantial Ownership and Active Role: You must own at least 10% of the business at the time of application and play a central role in its operations.

Benefits of the IER

• Five-Year Stay: The IER allows an initial stay of up to 30 months, with a possible extension for another 30 months, for a total of five years.
• No Traditional Visa Sponsor Needed: Unlike the H-1B visa, which requires an employer sponsor, the IER lets you self-sponsor through your startup, giving you more independence and control.
• Family Inclusion: Your spouse and children can also live in the United States during your IER stay, and spouses are eligible for work authorization.

How to Apply and Stay Compliant

• Application: File Form I-941 with U.S. Citizenship and Immigration Services (USCIS), providing detailed documentation of investment, business plan, and proof of ownership
• Compliance: Maintain the business’s growth trajectory, create U.S. jobs, and meet ongoing reporting requirements. Failure to meet these benchmarks can affect extensions or future immigration applications.

The IER is especially valuable for innovators and tech founders who may not fit into traditional visa categories but can demonstrate clear economic impact and scaling potential.

Investment Requirements Across Visa Pathways

When planning to start or scale a U.S. business as a foreign entrepreneur, understanding visa-specific investment requirements is essential. Each pathway has different financial expectations, and meeting these requirements can make or break your application.

E-2 Visa: Substantial Investment

The E-2 treaty investor visa requires a “substantial investment,” often $100,000 or more, in a U.S. enterprise.

• Purpose of Funds: The money must be committed and at risk, meaning it’s already invested or actively being used for startup costs such as equipment, marketing, or staffing.
• Business Viability: The enterprise must generate significant income and not simply provide a minimal living for the investor.

EB-5 Immigrant Investor Program: High-Capital Option

The EB-5 program is aimed at entrepreneurs capable of large-scale investment:

• Minimum Investment: At least $800,000 in a Targeted Employment Area (TEA) or $1,050,000 elsewhere.
• Job Creation Requirement: Your investment must create at least 10 full-time jobs for U.S. workers within two years of approval.
• Benefit: Direct path to a green card for the investor, spouse, and unmarried children under 21.

Start-Up Capital for H-1B Entrepreneurs

While the H-1B visa doesn’t require a formal minimum investment, entrepreneurs using it to work for their own startup must show sufficient capital to sustain operations and pay a fair wage that meets prevailing wage requirements.

• Proof of Financial Viability: Business plans and bank statements should demonstrate the ability to pay salaries and maintain operations.
  

Tips for Securing and Documenting Funds

• Source of Funds: All investments must be lawfully obtained and well-documented, including bank statements, contracts, or sale-of-asset records.
• Structured Funding: Using venture capital, angel investments, or government grants not only satisfies visa requirements but also signals credibility.
• Plan for Sustainability: Outline how the investment will drive growth and job creation, strengthening your visa case.

Resources and Professional Support

Launching a U.S. business as an H-4 visa holder or through other entrepreneurial visa pathways can be complex, and professional guidance is invaluable. The right advisors and networks help you stay compliant, secure funding, and accelerate growth.

Immigration Attorneys Specializing in Entrepreneurial Visas

Immigration law around business formation—especially for founders on visas like H-4, E-2, O-1, or EB-5—is intricate.

• Why They Matter: An experienced immigration lawyer can clarify which visa best matches your business goals, ensure that your application meets U.S. Citizenship and Immigration Services (USCIS) requirements, and guide you on maintaining status as your company scales.
• What They Offer: Assistance with complex filings, interpretation of work-authorization rules, preparation of business plans for visa petitions, and risk management to prevent accidental violations.

Startup Accelerators, Incubators, and SBA Programs

Support networks like Y Combinator, Techstars, or local accelerators provide early-stage startups with mentoring, seed funding, and access to investor networks—benefits that strengthen visa applications and fuel rapid growth.

• Incubators: Often offer office space, legal and accounting support, and connections to venture capital.
• U.S. Small Business Administration (SBA): Provides free counseling, training, and resources on business planning, funding, and compliance. Their programs can help entrepreneurs—especially those new to U.S. regulations—navigate financing, marketing, and scaling.

Banking and Tax Professionals for Foreign Founders

Proper financial setup is critical for credibility with both investors and immigration authorities.

• Banking Support: Business bankers familiar with foreign entrepreneurs can help you open accounts, set up merchant services, and handle international transfers.
• Tax Advisors and CPAs: U.S. taxes differ by state and business type. Professionals with experience in non-resident and cross-border taxation can help you minimize liabilities, meet reporting requirements, and structure compensation legally for yourself and any employees.

Conclusion & Action Plan

Starting a business in the United States as an H-4 visa holder is possible, but it requires careful planning and strict compliance with immigration and business regulations. While H-4 status allows you to own or invest in a company, actively managing or working for your business usually demands an Employment Authorization Document (EAD) or a change to a more flexible visa. Exploring alternative visa pathways—such as H-1B, O-1, E-2, the International Entrepreneur Rule, or EB-5—can provide greater long-term freedom, allowing you to take on executive roles and scale your venture confidently.

The best next steps are to consult an experienced immigration attorney, decide which visa option aligns with your goals and resources, and prepare a comprehensive business plan that highlights your startup’s growth potential, job creation prospects, and investment strategy. As your business grows, remain vigilant with ongoing compliance—from tax filings to visa renewals—to protect both your immigration status and your company’s legal standing.