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Dear Sophie: Which immigration options allow me to launch my own startup?
Here’s another edition of “Dear Sophie,” the advice column that answers immigration-related questions about working at technology companies.
“Your questions are vital to the spread of knowledge that allows people all over the world to rise above borders and pursue their dreams,” says Sophie Alcorn, a Silicon Valley immigration attorney. “Whether you’re in people ops, a founder or seeking a job in Silicon Valley, I would love to answer your questions in my next column.”
Extra Crunch members receive access to weekly “Dear Sophie” columns; use promo code ALCORN to purchase a one- or two-year subscription for 50% off.
Dear Sophie,
I’ve been working on an H-1B in the U.S. for nearly two years.
While I’m immensely appreciative of my company’s sponsorship and that I made it through the H-1B lottery and am working, I’m stuck in a rut. I really want to start something of my own and work on my own terms in the United States.
Are there any immigration options that would allow me to do that?
— Seeking Satisfaction near Stanford
Dear Seeking,
A couple of exciting immigration news updates to get us started today! In breaking startup founder news, U.S. Rep. Zoe Lofgren (D-CA) introduced the LIKE Act for startup founders in the House of Representatives last week. Below, we’ll share what this could mean for your startup aspirations. Also, U.S. Citizenship and Immigration Services (USCIS) conducted a second H-1B lottery because it didn’t receive enough H-1B petitions to meet the annual cap. So, if you or your employer were selected, be sure to file an H-1B petition by November 3.
Although job dissatisfaction and frustration on an H-1B can be normal, according to Edward Gorbis, there’s a lot you can do to take control of your U.S. immigration situation and go out on your own. I interviewed Gorbis for my podcast; he’s the founder of Career Meets World and a performance coach who works with immigrants and first-generation professionals to help them find fulfillment and thrive in their careers and life. Gorbis said that “once immigrants reach stability, they start to think, ‘Who am I, what do I value, what’s my core identity?’” It’s possible for any of us to retrain our brain for success.
Gorbis said that imagining overcoming the hurdles that stand in the way of doing the work that will fulfill you is the first step. So, here are some options that can help you imagine how to build the life of your dreams.
Become a founding CEO and raise $250,000
A great new option for aspiring entrepreneurs is International Entrepreneur Parole (IEP), a new immigration program in the United States that allows CEOs, CTOs and others to live in the U.S. and run their company for 2.5 years with an option for a 2.5-year extension. Your spouse can obtain a work permit.
How to qualify? You need to own at least 10% of a U.S. company, such as a Delaware C corporation registered in California. Ideally, you’ll want to show that your company bank account has at least $250,000 raised from qualified U.S. investors, but you can use other evidence to demonstrate that your company has the potential to grow rapidly and create jobs in the U.S.
A startup visa and path to a green card may be soon on the way for entrepreneurs and their crucial employees: Last week, Lofgren introduced the Let Immigrants Kickstart Employment (LIKE) Act. The requirements for the proposed startup visa are the same as for IEP but would allow a longer stay — up to eight years total if the startup creates jobs and generates substantial revenue.
I’m very proud to have aided in drafting the LIKE Act. It’s a thrill to see how my suggestions were included, such as making Startup Green Cards not subject to the visa bulletin, clarifying that you can seek consecutive Startup Visas from different companies, how to allocate employee visas to startups, ensuring the Startup Visa is a dual intent status, and adding premium processing. It was such a joy to be able to contribute ideas to this amazing process. I look forward to supporting this bill to become a law; please reach out to me if you want to support this worthy cause.
Image Credits: Joanna Buniak / Sophie Alcorn (opens in a new window)
See yourself at another company
There is technically no limit to how many H-1B employers you can have or how many — or few — hours you work in an H-1B position. So, think about other companies.
One option would be to have concurrent H-1Bs: Keep your current H-1B job for stability and start your own company, preferably with another individual or two, and have your startup sponsor you for an H-1B. Take a look at this Dear Sophie column for what to do before embarking on this path.
Another option would be to transfer your H-1B to another employer, or your own startup if you are going to work there. Since you already went through the H-1B lottery with your current employer, you will not have to go through the lottery process again for a second H-1B whether you choose the concurrent or transfer option.
Setting up a startup that can sponsor you for an H-1B is complicated, so I suggest you work with both a corporate attorney and an immigration attorney. Keep in mind that you will not be able to do any work for your startup until an H-1B with your startup has been approved, which is why having co-founders is helpful. Another reason is H-1Bs require an employer-employee relationship between a startup and the H-1B candidate. That means a co-founder — or the startup’s board — must supervise you and have the ability to fire you. Moreover, we often advise founders that it may be best to own less than a 50% stake in the startup when applying for an H-1B.
Consider a green card
If you end up pursuing concurrent H-1Bs, consider asking your employer whether it is willing to sponsor you for a green card. If that’s not the case, your startup can sponsor you for one, or you can self-petition for a green card:
- EB-1A extraordinary ability green card
- EB-2 NIW (National Interest Waiver) green card
- EB-2 green card for professionals holding advanced degrees
- EB-2 exceptional ability green card
- EB-3 green cards for skilled workers and professionals
All EB-2 green cards — except the EB-2 NIW — and the EB-3 green card require labor certification approval (PERM) from the U.S. Department of Labor. The two green cards that allow an individual to self-sponsor are the EB-1A and EB-2 NIW.
Imagine yourself doing gigs in your field
Many startup founders qualify for an O-1A extraordinary ability visa. However, you cannot have both an H-1B and an O-1A at the same time, so if your startup sponsors you for an O-1A, you will be required to leave your current H-1B job once an O-1A is approved.
An O-1A offers more flexibility than an H-1B. You can work for a single petitioning company or on multiple gigs through an agent. However, qualifying for an O-1A is more difficult than an H-1B. Resources, such as through my firm, support people with getting qualified. The one similarity with the H-1B is that you must show your startup and you have an employer-employee relationship.
Invest in your own company
The E-2 visa for treaty investors and employees is ideal for startup founders whose home country has a treaty of commerce and navigation with the U.S. Here is a list of treaty countries. For more details on E-2 visas for founders and employees, check out this previous Dear Sophie column and podcast episode.
Although there is no minimum dollar amount that a founder must invest in a startup to qualify for an E-2, we often advise founders to invest at least $100,000 to have a strong case. You cannot have both an H-1B and an E-2, so you will need to leave your current H-1B job if your E-2 is approved.
An immigration attorney can offer additional options based on your personal circumstances and legal advice tailored to you.
Enjoy the journey of building your dreams!
Sophie
Have a question for Sophie? Ask it here. We reserve the right to edit your submission for clarity and/or space.
The information provided in “Dear Sophie” is general information and not legal advice. For more information on the limitations of “Dear Sophie,” please view our full disclaimer. You can contact Sophie directly at Alcorn Immigration Law.
Sophie’s podcast, Immigration Law for Tech Startups, is available on all major platforms. If you’d like to be a guest, she’s accepting applications!
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Dear Sophie: Should we sponsor international hires for H-1B transfers and green cards?
Here’s another edition of “Dear Sophie,” the advice column that answers immigration-related questions about working at technology companies.
“Your questions are vital to the spread of knowledge that allows people all over the world to rise above borders and pursue their dreams,” says Sophie Alcorn, a Silicon Valley immigration attorney. “Whether you’re in people ops, a founder or seeking a job in Silicon Valley, I would love to answer your questions in my next column.”
Extra Crunch members receive access to weekly “Dear Sophie” columns; use promo code ALCORN to purchase a one- or two-year subscription for 50% off.
Dear Sophie,
My startup is desperately recruiting, and we see a lot of engineering candidates on H-1Bs. They’re looking for H-1B transfers and green cards. What should we do?
— Baffled in the Bay Area
Dear Baffled,
Yes, you should absolutely sponsor international talent for green cards! Listen to my podcast in which I discuss how to hire international professionals who are already in the United States by transferring their H-1B visa and using green cards as a benefit to attract and retain them.
The severe shortage of tech talent currently in the U.S. is prompting professionals to negotiate better compensation packages, and companies are increasingly using green card sponsorship as a benefit to attract and retain international talent.
Green card sponsorship as a benefit
Companies need to offer green card sponsorship to remain competitive. In fact, Envoy’s 2021 Immigration Trends Report found that 74% of employers said they have sponsored an individual for permanent residence (a green card), which is the highest percentage in the six years Envoy has asked this question in its annual survey. Rather than waiting until the last possible moment to sponsor an H-1B visa holder for a green card, 58% of employers say they are starting the process with the employee’s first year at the company on an H-1B visa. Most employers — 96% — said that sourcing international talent is important to their company’s talent acquisition strategy.
Image Credits: Joanna Buniak / Sophie Alcorn (opens in a new window)
Sponsoring international talent for a green card is a way for companies to show they invest in and prioritize their employees and are willing to make a long-term commitment to a prospective employee. Employers can further distinguish themselves by offering to cover expenses for green card applications for a spouse and children, as well as a work permit application for a spouse.
Employers should also consider paying for an employee’s marriage-based green card as a third-party payor, particularly since marriage-based green cards take about one-third of the time and one-third of the investment compared to employment-based green cards. What’s more, most marriage-based green cards are not subject to annual quotas.
H-1B transfers are most common right now
Because most U.S. embassies and consulates abroad remain closed for routine visa processing due to COVID-19, most employers are hiring international talent who are already in the United States on an H-1B sponsored by another employer. In these situations, an employer must file for an H-1B transfer for the prospective employee. Take a look at a previous Dear Sophie column for more details on the H-1B transfer process.
The questions that employers ask me most often about the H-1B transfer process include:
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Dear Sophie: What options would allow me to start something on my own?
Here’s another edition of “Dear Sophie,” the advice column that answers immigration-related questions about working at technology companies.
“Your questions are vital to the spread of knowledge that allows people all over the world to rise above borders and pursue their dreams,” says Sophie Alcorn, a Silicon Valley immigration attorney. “Whether you’re in people ops, a founder or seeking a job in Silicon Valley, I would love to answer your questions in my next column.”
Extra Crunch members receive access to weekly “Dear Sophie” columns; use promo code ALCORN to purchase a one- or two-year subscription for 50% off.
Dear Sophie,
I’ve been working on an H-1B in the U.S. for nearly two years. While I’m grateful to have made it through the H-1B lottery and to be working, I’m feeling unhappy and frustrated with my job.
I really want to start something of my own and work on my own terms in the United States. Are there any immigration options that would allow me to do that?
— Seeking Satisfaction
Dear Seeking,
Job dissatisfaction and frustration while on H-1B is normal, according to Edward Gorbis. He is the founder of Career Meets World and a performance coach who specifically works with immigrants and first-generation professionals to help them find fulfillment and thrive in their careers and life. I recently spoke with him for my podcast, “Immigration Law For Tech Startups.”
He says that “once immigrants reach stability, they start to think, ‘Who am I, what do I value, what’s my core identity?’” He partners with people to help them to gain a better understanding of why they think the way they do, teach them how our brain really works, and then reshape and retrain the brain for success.
Gorbis says that imagining overcoming the hurdles that stand in the way of doing the work that will fulfill you is the first step. So, here are some options that can help you imagine how to move toward building the life of your dreams.
Image Credits: Joanna Buniak / Sophie Alcorn (opens in a new window)
Raise $250,000 and be the CEO
A great new option for aspiring entrepreneurs is International Entrepreneur Parole, a new immigration program in the United States that allows CEOs, CTOs and others to obtain a 2.5-year immigration status. You can live in the U.S. and run your company. Your spouse can work and you could be eligible for a 2.5-year extension.
How to qualify? You’ll need to own at least 10% of a U.S. company, such as a Delaware C corporation registered in California. Ideally, you’ll want to show that your company bank account has at least $250,000 raised from qualifying U.S. investors prior to applying, but you can demonstrate other evidence to show that your company has the potential to grow rapidly and create jobs in the U.S.
See yourself at another company
There is technically no limit on how many H-1B employers you can have or how many hours you work — or how few hours you work — in an H-1B position. So, think about other companies.
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Dear Sophie: When can I finally come to Silicon Valley?
Here’s another edition of “Dear Sophie,” the advice column that answers immigration-related questions about working at technology companies.
“Your questions are vital to the spread of knowledge that allows people all over the world to rise above borders and pursue their dreams,” says Sophie Alcorn, a Silicon Valley immigration attorney. “Whether you’re in people ops, a founder or seeking a job in Silicon Valley, I would love to answer your questions in my next column.”
Extra Crunch members receive access to weekly “Dear Sophie” columns; use promo code ALCORN to purchase a one- or two-year subscription for 50% off.
Dear Sophie:
I’m a startup founder looking to expand in the U.S. I was originally looking at opening an office in Silicon Valley to be close to software engineers and investors, but then … COVID-19 🙂
A lot has changed over the last year — can I still come?
— Hopeful in Hungary
Dear Hopeful:
How and where work is getting done in Silicon Valley (as well as in much of the world) shifted during the COVID-19 pandemic. That said, yes, it can still make business sense for many to join the Silicon Valley ecosystem.
According to a recent report from PitchBook, Silicon Valley will continue to be the center for VC investment and high-tech talent, even though several large tech companies relocated out of Silicon Valley and implemented full-time work-from-home policies — and many predicted that “the Bay Area tech scene as we know it would be lost, and VC would find a new home.”
Clearly, while the pandemic’s impact on the venture industry will be felt in years to come, VC will continue to be centered in Silicon Valley. In a recent episode of my podcast, I discussed work trends and how to use immigration to support company priorities as well as attract and retain talent in the United States.
The PitchBook report points out that Silicon Valley “has kept a tight hold on fundraising in the U.S., closing on commitments exceeding $151 billion over the past five years, more than the rest of the U.S. ecosystems combined. LPs have continued to funnel capital to area VCs because of the region’s track record of success, which includes 17 of the 22 U.S. companies to ever receive a private valuation of $10 billion or more.”
Image Credits: Joanna Buniak / Sophie Alcorn (opens in a new window)
So while VCs will likely return to the old ways of networking and funding post-pandemic, we’ll see a hybrid of online and in-person meetings because there are so many benefits to in-person networking and exchanging ideas.
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Dear Sophie: Can you demystify the H-1B process and E-3 premium processing?
Here’s another edition of “Dear Sophie,” the advice column that answers immigration-related questions about working at technology companies.
“Your questions are vital to the spread of knowledge that allows people all over the world to rise above borders and pursue their dreams,” says Sophie Alcorn, a Silicon Valley immigration attorney. “Whether you’re in people ops, a founder or seeking a job in Silicon Valley, I would love to answer your questions in my next column.”
Extra Crunch members receive access to weekly “Dear Sophie” columns; use promo code ALCORN to purchase a one- or two-year subscription for 50% off.
Dear Sophie:
Our startup is planning on registering an international student employee in this year’s H-1B lottery. This will be our first H-1B.
Can you help demystify the H-1B process and provide any tips? We also want to hire an Australian and transfer their E-3. How quickly can this be done?
— Plucky in Pleasanton
Dear Plucky:
Thanks for your timely questions! There’s some great news for Australian citizens currently in the U.S. and looking for job transfers, amendments and extensions. Premium processing is now available for the E-3 working visa category! This means that transfers, changes of status, and extensions of status for Australians in the U.S. seeking an E-3 can now obtain adjudications from USCIS in as little as 15 days, making it much easier to hire an Australian who is currently in the U.S. for a new role. Go for it!
On the topic of H-1Bs, the registration period for this year’s H-1B lottery will open at 9 a.m. PST on March 9 and will close at 9 a.m. on March 25. Startups need to make sure they’re registering anybody they want to sponsor during this window. Take a listen to my recent podcast on H-1B Lottery Planning, Part 1 and Part 2, for a general explanation of how this year’s process will work and how best to prepare.
Planning is key for implementing a successful immigration strategy. As always, I suggest you consult with an experienced immigration attorney ASAP to help get organized for registering your H-1B candidate for the March lottery and doing as much prep work as possible so that you can put together a strong H-1B petition in the event your candidate is selected in the lottery.
An attorney will also be up to date on all the recent changes to immigration policy, such as USCIS rescinding a Trump-era policy that went into effect in 2017 that effectively made computer programming positions ineligible for an H-1B visa. You will also want to discuss backup options for the international student employee if they are not selected in this year’s lottery.
Image Credits: Joanna Buniak / Sophie Alcorn (opens in a new window)
Registration and lottery process
Recently, U.S. Citizenship and Immigration Services (USCIS) announced it will delay until next year the plan to shift from a random H-1B lottery to a wage-based one that would have selected registrants who would be paid the highest wage for their position and location. In January, the previous administration had finalized the rule implementing the wage-based lottery. The latest announcement ended weeks of speculation whether USCIS under the Biden administration would retain a wage-based H-1B allocation process, which falls in line with President Biden’s presidential campaign platform.
The random H-1B lottery in March means that H-1B candidates with the same education level who will be paid more will have no greater advantage than those being paid less. However, next year that may not be the case.
Regardless of whether there’s a random or wage-based lottery, individuals with a master’s or higher degree from a U.S. university will continue to have the best chance of being selected in the H-1B lottery. The annual cap on H-1Bs remains at 85,000 and of those, 20,000 H-1Bs are reserved for individuals with a master’s degree or higher from a U.S. university. USCIS randomly selects enough registered candidates from the entire pool of registrants to reach the 65,000 regular H-1B cap first. Then it randomly selects another 20,000 registered candidates holding a U.S. master’s degree or higher, in what is called the advanced-degree cap exemption. Therefore, individuals with a U.S. advanced degree have two chances to be selected. To be eligible, your international student employee must have earned their advanced degree from an eligible and accredited U.S. institution by the time the H-1B petition is filed.
After the online registration period closes on March 25, USCIS will conduct a random computerized selection of registrations and will notify those selected by March 31. A completed H-1B petition must be filed within 90 days of being notified that the H-1B candidate was selected in the lottery, which means the filing deadline will be June 30.
In order to register your candidate for the H-1B lottery, your company will need to set up an online USCIS account if it does not already have one. This can be done at any time between now and the end of the registration period. Your attorney can help you with this and the online registration process.
For the online registration process, your company will have to provide the following information:
- Full legal name of the candidate.
- Gender.
- Date of birth.
- Country of birth.
- Country of citizenship.
- Passport number.
- If the candidate is eligible for inclusion in the U.S. advanced-degree cap.
In addition, your company will have to pay the $10 registration fee, which can be submitted by entering a credit card, debit card, checking or savings account directly into the H-1B registration portal.
Tips for preparing
Generally, your startup and your H-1B candidate should start assembling documents you will need to submit. Your startup will need to get its tax identification number verified by the U.S. Department of Labor to prove that your startup is capable of sponsoring an individual for an H-1B. This needs to be done before your company can submit a Labor Condition Application (LCA), which is also sent to the Labor Department. An approved LCA must be submitted with your H-1B petition to USCIS. In addition to your startup’s tax ID, it will need the following:
- If your startup formed recently, articles of incorporation, pitch deck, business plan, term sheet, cap tables.
- Documentation showing your company can pay the prevailing wage for the H-1B candidate’s position and location: bank statements, tax returns, other financial documents.
- Documents to prove your company is operating within the normal course of business, including marketing materials, company reports, screenshots of the company website.
- Job offer letter to the H-1B candidate, including job title, detailed duties, benefits, salary and start date.
- Minimum requirements for the position.
Your H-1B candidate will need:
- An up-to-date resume.
- Originals of diplomas, certificates, and transcripts (also scanned copies).
- Past immigration documents, such as Form I-20 (certificate of eligibility for F-1 student status) or Form DS-2019 (certificate of eligibility for J-1 status.
- Translations of any documents not in English along with a certified translation document.
For tips for filing the H-1B petition, listen to my podcast episodes on “Your Startup’s First H-1B” and “What Makes a Strong H-1B Petition.” Your attorney will be able to make the case that your H-1B candidate and the position your startup is offering meet the requirements of the H-1B specialty occupation visa.
As of now, premium processing for H-1B petitions remains available. Currently, USCIS is severely backlogged in all case types, so I often suggest using it, depending on the H-1B candidate’s start date and current geographic location. With premium processing, which is an optional service for a $2,500 fee, USCIS guarantees it will make a decision on a case within 15 days. If USCIS approves your H-1B petition, the earliest the international student employee can begin working under the H-1B visa is Oct. 1, 2022, which is the first day of the federal government’s new fiscal year.
Fingers crossed for you in this year’s H-1B lottery
All the best,
Sophie
Have a question for Sophie? Ask it here. We reserve the right to edit your submission for clarity and/or space.
The information provided in “Dear Sophie” is general information and not legal advice. For more information on the limitations of “Dear Sophie,” please view our full disclaimer. You can contact Sophie directly at Alcorn Immigration Law.
Sophie’s podcast, Immigration Law for Tech Startups, is available on all major platforms. If you’d like to be a guest, she’s accepting applications!
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Dear Sophie: Which immigration options are the fastest?
Here’s another edition of “Dear Sophie,” the advice column that answers immigration-related questions about working at technology companies.
“Your questions are vital to the spread of knowledge that allows people all over the world to rise above borders and pursue their dreams,” says Sophie Alcorn, a Silicon Valley immigration attorney. “Whether you’re in people ops, a founder or seeking a job in Silicon Valley, I would love to answer your questions in my next column.”
Extra Crunch members receive access to weekly “Dear Sophie” columns; use promo code ALCORN to purchase a one- or two-year subscription for 50% off.
Dear Sophie:
Help! Our startup needs to hire 50 engineers in artificial intelligence and related fields ASAP. Which visa and green card options are the quickest to get for top immigrant engineers?
And will Biden’s new immigration bill help us?
— Mesmerized in Menlo Park
Dear Mesmerized,
I’m getting this question quite frequently now as more and more startups with recent funding rounds are looking to quickly expand. In the latest episode of my podcast, I discuss some of the quickest visa categories for startups to consider when they need to add talent quickly.
As always, I suggest consulting with an experienced immigration lawyer who can help you quickly strategize and implement an efficient and cost-effective hiring and immigration plan. An immigration lawyer will also be up to date on any immigration policy changes and plans in the event that the Biden administration’s U.S. Citizenship Act of 2021 passes. It was introduced in the House and Senate this month.
That proposed legislation would enable more international talent to come to the U.S. for jobs and clear employment-based visa backlogs, among other things. Given the legislation’s substantial benefits offered to employers, I encourage your startup — and other companies — to let congressional representatives know you support it.
Image Credits: Joanna Buniak / Sophie Alcorn (opens in a new window)
Given that most U.S. embassies and consulates remain at limited capacity for routine visa and green card processing due to the pandemic, it is generally quicker to hire American and international workers who are already in the U.S. Although U.S. Citizenship and Immigration Services (USCIS) is experiencing substantial delays in processing cases due to the coronavirus, as well as an increase in applications, Premium Processing is currently available for most employment-based petitions. We are still able to support many folks with U.S. visa appointment scheduling at consulates abroad using various national interest strategies.
With all of that in mind, here are the visa categories that offer the quickest way to hire international talent.
H-1B transfers
Hiring individuals by transferring their H-1B to your startup can be completed in a couple of months with premium processing. Premium processing is an optional service that for a fee guarantees USCIS will process the petition within 15 calendar days.
What’s more, H-1B transferees can start working for your startup even before USCIS has issued a receipt notice or made a decision in the case. You just need to make sure that USCIS received the petition, which is why I always recommend sending all packages to USCIS with tracking.
Premium processing can help to get a digital receipt as the paper receipts are often backlogged. I stopped suggesting this route during the Trump administration, but am feeling more comfortable providing it as an option under the Biden administration. The H-1B is the only type of visa that allows somebody to start working upon the filing of a transfer application.
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Dear Sophie: What are Biden’s immigration changes?
Here’s another edition of “Dear Sophie,” the advice column that answers immigration-related questions about working at technology companies.
“Your questions are vital to the spread of knowledge that allows people all over the world to rise above borders and pursue their dreams,” says Sophie Alcorn, a Silicon Valley immigration attorney. “Whether you’re in people ops, a founder or seeking a job in Silicon Valley, I would love to answer your questions in my next column.”
Extra Crunch members receive access to weekly “Dear Sophie” columns; use promo code ALCORN to purchase a one- or two-year subscription for 50% off.
Dear Sophie:
I work in HR for a tech firm. I understand that Biden is rolling out a new immigration plan today.
What is your sense as to how the new administration will change business, corporate and startup founder immigration to the U.S.?
—Free in Fremont
Dear Free:
Today is a historic day. The pace of change is accelerating now, especially in Washington. At the time of this writing, Biden is expected to imminently launch a new legislative proposal for comprehensive immigration reform. As the world sits back and watches, we are focusing great collective attention on upgrading our political, sociological and technological structures so that each human has the chance to succeed.
One of the things I adore about my practice of supporting international professionals with U.S. immigration is bearing witness to the process of individual transformation; it is an honor to support people in their personal journey from living in a world of effects to becoming the cause.
The immediate focus of the proposed legislation is centered around a solution for Dreamers (who are in the U.S. without documentation) as well as supporting the rights of refugees and asylum-seekers and children. For more of my recent thoughts on this topic, check out my recent podcast explaining many of the changes. The draft bill is expected to span hundreds of pages, so please follow this Dear Sophie column for more updates as I track and explore the details, especially related to tech immigration.
Innovation will be supported by many new immigration opportunities coming into greater focus. Biden’s campaign platform celebrated how “Immigrants are essential to the strength of our country and the U.S. economy.” The Biden team has prioritized immigration as a key focus within COVID, with an immediate goal of rewriting most Trump-era rules. For context, Trump issued more than 400 immigration-related executive orders and proclamations during his term.
H-1Bs: Although H-1Bs have been in the news a lot regarding new wage rules changing the order of the lottery and litigation, the lottery is still happening this spring, and if you want to sponsor candidates, the time to act is now, regardless of what is happening in Washington. If your company is planning on sponsoring individuals for an H-1B visa — whether they’re already living in the U.S. or are living abroad — I suggest that you continue to prepare for the upcoming H-1B registration period.
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Dear Sophie: How did immigration change for startup founders in 2020?
Here’s another edition of “Dear Sophie,” the advice column that answers immigration-related questions about working at technology companies.
“Your questions are vital to the spread of knowledge that allows people all over the world to rise above borders and pursue their dreams,” says Sophie Alcorn, a Silicon Valley immigration attorney. “Whether you’re in people ops, a founder or seeking a job in Silicon Valley, I would love to answer your questions in my next column.”
Extra Crunch members receive access to weekly “Dear Sophie” columns; use promo code ALCORN to purchase a one- or two-year subscription for 50% off.
Dear Sophie:
I’m on an F1 OPT and am about to incorporate a startup with my two American co-founders. What were the biggest immigration changes in 2020 affecting us?
—Ambitious in Albany
Dear Ambitious:
Congrats on creating your startup. The Electoral College has voted and Biden is scheduled to take office on January 20, 2021. It may take him a few months to undo many of the Trump immigration changes, so there are several things for you to consider.
2020 gave many of us whiplash with all the things that happened! We braced for the worst in April after President Trump tweeted that he would suspend immigration to the U.S. In the end, the executive proclamations he issued in April and June fell far short of that and immigration remains possible.
However, these bans remain in effect until at least the end of 2020. The proclamations placed moratoriums on the issuance of green cards by the U.S. Embassies and consulates abroad, as well as H-1B, H-2B, J-1 and L-1 work visas. The Department of State has expanded the list of exceptions to these bans so many people now qualify.
One of the current constraints affecting the most people is that many embassies and consulates remain closed or are operating at significantly reduced capacity. Given that, we are recommending to our clients who are already in the U.S. to avoid leaving by seeking Extensions of Status, Changes of Status and Adjustments of Status with USCIS stateside.
The H-1B may be another promising visa option for your future as a founder. There are two ways to do it: “cap-subject” (the annual spring lottery) and “cap-exempt” (anytime of year). At a minimum, it’s easy for your startup to register you for the upcoming H-1B lottery in March 2021. It only costs $10 to register an H-1B candidate. If you’re selected, your startup could file an H-1B petition on your behalf. If you are not selected, your startup can register you again in 2022.
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Dear Sophie: What visa options exist for a grad co-founding a startup?
Sophie Alcorn is the founder of Alcorn Immigration Law in Silicon Valley and 2019 Global Law Experts Awards’ “Law Firm of the Year in California for Entrepreneur Immigration Services.” She connects people with the businesses and opportunities that expand their lives.
Here’s another edition of “Dear Sophie,” the advice column that answers immigration-related questions about working at technology companies.
“Your questions are vital to the spread of knowledge that allows people all over the world to rise above borders and pursue their dreams,” says Sophie Alcorn, a Silicon Valley immigration attorney. “Whether you’re in people ops, a founder or seeking a job in Silicon Valley, I would love to answer your questions in my next column.”
Extra Crunch members receive access to weekly “Dear Sophie” columns; use promo code ALCORN to purchase a one- or two-year subscription for 50% off.
Dear Sophie:
What are the visa prospects for a graduate completing an advanced degree at a university in the United States who wants to co-found a startup after graduation? Can the new startup or my co-founders sponsor me for a visa?
—Brilliant in Berkeley
Dear Brilliant,
Thank you for your questions and for your contributions. The U.S. economy greatly benefits from entrepreneurial individuals like you who create companies — and jobs — in the U.S.
Let me take your second question first: Yes, it is theoretically possible for your startup to sponsor you for a visa, and for one of your co-founders to be your supervisor. Many visas and employment green cards require a company to sponsor you and for you to demonstrate that a valid employer-employee relationship exists.
Given your situation, timing will be key, particularly since one of your best visa options is the H-1B Visa for Specialty Occupations. The number of H-1B visas issued each year is typically capped at 85,000-60,000 for individuals with a bachelor’s degree and 25,000 for individuals with a master’s or higher degree. Because of the cap on H-1B visas and because the demand for them far outstrips the supply, U.S. Citizenship and Immigration Services (USCIS) holds a lottery once a year in the spring to determine who can apply for this visa.
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The H-1B visa ban is creating nearshore business partnership opportunities
Andrés Vior
Contributor
Contributor
Andrés Vior is the VP and country manager for Argentina at intive. A computer engineer who graduated from the University of Buenos Aires (UBA), he is also a member of the Chamber of Software and Computer Services Companies of Argentina (CESSI).
In June, President Donald Trump signed an executive order temporarily suspending work visas for H-1B holders, which includes skilled workers like software developers.
Considering that 71% of workers in Silicon Valley and other tech hubs are international, the order poses a number of logistical and business challenges for startups.
While nearshoring was an option before the virus struck, the urgency to nearshore due to the visa ban, combined with the remote revolution taking place, has meant companies are reconsidering it as a solution. As a result, the suspension presents an opportunity for companies to bring on board software development capabilities from abroad.
Nearshoring is a way to hire teams in locations that share similar time zones and are easily accessible. Nearshoring also enables U.S. companies to utilize services from close locations, where the talent, working conditions, and salaries are more favorable. In fact, it can save businesses up to 80% on costs, while providing employees with flexibility, autonomy and better career development pathways.
Not only is nearshoring a pragmatic response to the visa ban, it has the potential to be a long-term hiring alternative for businesses. Here’s how:
Laying the groundwork for remote teams
Amid the pandemic, demand for developers has remained high, no doubt due to companies needing teams to build, maintain and optimize digital platforms as they transition to online services. The visa ban means that businesses in foreign markets can help meet such demand, particularly as tech talent from other countries comes with a fresh, different skill set that empowers companies to solve problems in new ways.
In the past, moving to the U.S. and living the American Dream oriented many foreign businesses’ professional paths. However, the trend has changed. The appeal of the United States was slipping prior to the virus — it ranked 46th out of 66 for “perceived friendliest to expats” — and post-COVID-19 may be even more detrimental.
In a more connected world, businesses and individuals can reap the benefits of U.S. opportunities — top technology stack, access to exciting companies and world-class research — without having to actually live in the country. In this respect, nearshoring means foreign teams have the best of both worlds: the comfort of home and ties to an international powerhouse.
The remote shift is demonstrating that teams can function well at a distance; some studies have even revealed that employee productivity and happiness benefit from remote work. In the global remote shift, nearshoring is being seen as an accepted and advantageous model. Companies that opt to nearshore in response to the visa ban can take advantage of the changing tides and use this time to lay the groundwork for best practices within remote teams. For instance, by devising policies for things like communication, tracking progress, vacation and development plans according to the new conditions and specific mission statements. As a result, businesses can seamlessly build professional partnerships.
Another advantage of nearshoring is that the flexible teams contribute to a ready-to-scale model for startups. By having development partners located in different countries, companies can network on a wider level and grow faster among local markets. Rather than start from scratch when expanding, nearshoring gives companies a presence — no matter how small — across regions, which can later be built upon.
Attracting fresh investment
Similar to having a readiness to scale, the H-1B visa suspension positions nearshoring as a viable way to strategically partner with foreign development studios. In contrast to offshoring, nearshored businesses are often more vested in the projects they work on because they share time zones and are thus able to work more closely and with greater agility. Within startups, such agility is essential to continuously test, iterate and pivot products or services. Outsourced teams often have defined outputs to achieve, while freelancers are split across several projects, so aren’t completely ingrained in companies’ visions.
With nearshoring, startups can target partners that have experience in a particular area of business or with a specific tech feature and accelerate their time to market. Instead of building systems from zero, they can launch into version 2.0 because the wider choice of experts means there’s a higher chance of partnering with teams who already understand how the industry functions. Nearshore partners also have vast knowledge across industrial fields at a level that is impossible for direct hires to have. Companies therefore don’t have to tackle the difficulty of curating a great team, because nearshore partners are an already solid pairing.
When it comes to funding, this synchronicity, agility and preparedness indicates that a startup has momentum. For investors, nearshoring shows that the company has on-the-ground insights about potential markets to disrupt, and that the business model can thrive using remote teams. As the world braces itself to go fully digital, startups that have already adopted remote processes that catalyze growth will no doubt catch the attention of investors.
Promoting greater diversity in teams
Latin America is a clear choice for U.S. businesses looking to nearshore. The region’s proximity, increasing internet penetration, and impressive number of highly skilled developers are all a significant draw.
It’s also worth noting that diversity plays a core role in nearshoring. Currently within tech, Hispanic workers are noticeably underrepresented, making up a mere 16.7% of jobs. Despite the physical distance, nearshoring in Latin America can bring people from different social and economic backgrounds into companies, boosting their visibility in industries as a whole, and setting a firm foundation for equality.
Studies also show that diversity influences creativity among teams, as well as increases company revenue.
Moreover, nearshoring accelerates diversity in a manner that isn’t disruptive. Foreign team members don’t have to sacrifice their home, friends and family to further their professional career. Relocating to the U.S. can be daunting for people who haven’t previously worked abroad, especially when factoring the change in living costs and new culture norms. Nearshoring means teams can work from locations they’re familiar with, so need less time to get up to speed on business processes. They additionally have the emotional support of their social circles nearby, which in the current climate is important for employees’ personal and professional wellbeing.
Leveraging the right partnership
Research is key to successfully find a nearshore company, and startups don’t always have the time and resources to conduct an in-depth analysis of locations and their ecosystems. The most practical manner to nearshore the right talent is with a nearshoring partner that is responsible for scouting, vetting and communicating with foreign developers.
To find an appropriate partner, ensure that they have previous experience in your industry and positive testimonials from startups in your location. They should also have a clear presence in the regions they operate in; try checking online for their press releases, events they sponsor and general content that validates they are active and respected.
Once you’ve found an appropriate nearshore partner, rely on them to know what teams in your preferred locations need in terms of culture. Nearshore partners will essentially be your development partner — you can leverage them to be your whole Research and Development department. They can guide you on the tech side of your business, advise you on the right team at the right time, give you direction on stack and methodology, and curate the right environment for the team to be productive. In contrast, hiring freelancers comes with risks because you won’t necessarily know the specific needs of the location they’re in. Be aware — if there’s a cultural disconnect, you risk not finding a partner, but a vendor that’s buying into a superficial version of your startup, as opposed to your real startup vision.
Once you’ve settled on a well-fitting nearshoring partner, ensure you have detailed contracts with all team members, as well as nondisclosure agreements. Nearshoring requires a level of mutual trust, however, at such an early stage of your company’s lifecycle, you need to know that your processes and data will not be revealed to competitors. Check that your nearshore partner’s financial status is secure and sufficient for a long-term model. Correspondingly, service level agreements will set the parameters for job responsibilities and deliverables. After all the formalities are covered, you can focus on curating fruitful, long-term relationships.
Acclimatizing in the new normal
The COVID-19 crisis has made recruitment a remote-dominated sphere. Traditional modes of hiring are being reassessed, and companies are realizing that teams don’t have to be in an office to be productive. In fact, not having to cover visa and administration fees for foreign employees is much more cost-effective for companies.
As time passes and businesses develop habits best-suited to remote work, nearshoring will become increasingly popular. People are prioritizing joining teams where their career development, well-being and ethics are protected, all of which nearshoring can offer with the added benefit of not completely upheaving workers’ lives.
Startups who embrace nearshoring early on could find themselves competing with top tech firms that struggle because of recruiting limitations. With the end of the pandemic unknown, and thus no hard deadline for the visa ban, tech companies have to look at alternative modes of building teams. Startups have the advantage of revising their remote product development approach without disturbing workflows too severely. They are also known for pioneering fairer and more innovative workplaces that are enticing for a broader scope of employees.
Nearshoring is mutually beneficial because developers don’t have to give up their culture for a great employment opportunity, and businesses can reap the benefits of diversification. Ultimately, the H-1B visa suspension could stimulate true globalization in tech, where companies can achieve their best performance using global resources.
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