You Can Work For Your Own Company on H1B
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.
Source : On Immigration, a step in the right direction, Vivek Wadhwa
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.