Can you start a business if you are on H1B ? And Can that business sponsor your H1B and hire you as an employee ?
Yes and Yes.
Under the previous interpretations of CIS rules, a highly skilled worker who is legally in the United States on an H-1B visa could start a company but could not work for it. CIS updated the H1-B guidelines to “clarify” that business owners on H1-B visas could work for their own companies, provided that they work full time for the company and are treated like an employee. For example, the company could have a board that is able to hire, fire, pay, supervise or otherwise control the worker like they would any other staff member.
Its really wonderful news and clarification to both questions. Even though many people knew that they could start a business while on H1B, its always a rather gray area with too many interpretations.