Starting a Business in the US - Klasko, Rulon, Stock & Seltzer, LLP

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

[email protected]

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.

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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.

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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

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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    

“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  

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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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$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 [email protected] 215-825-8600 (Philadelphia) 212-796-8840 (New York) www.klaskolaw.com

Klasko, Rulon, Stock & Seltzer, LLP