Learn what employment contracts and company structures work best for O-1 tech founders. Discover agent agreements, self-sponsorship, and compliance strategies.
O-1 visa company setup starts with understanding who can petition for your visa. The petitioner must be a US employer or agent. For founders, this typically means either your startup serves as petitioner or you work with an agent who petitions on your behalf. Your company can petition for you even if you own it, as long as proper supervision exists. USCIS updated guidance in January 2025 explicitly confirming that a corporation or LLC owned by the beneficiary may file on that individual's behalf when appropriate governance exists.
The key requirement is demonstrating your company can supervise or terminate you. This proves a genuine employer-employee relationship exists rather than you just working for yourself completely independently. Establish a board of directors with at least one independent director who isn't you. The board should have authority to fire you and control major company decisions. Document this authority through corporate bylaws, board resolutions appointing you to your role, and organizational charts showing reporting structures. Even if you're the majority shareholder, the board's authority over your employment satisfies USCIS requirements.
Choose the right corporate entity type for your situation. Most tech founders choose Delaware C-corporations for investor compatibility and clear governance structures. LLCs can work but require careful documentation of member agreements and management structures. Sole proprietorships don't work because they can't create the employer-employee relationship USCIS requires. Incorporate before filing your O-1 petition, establish your board, and document everything with corporate records showing proper formation and governance.
Planning your company structure for O-1 sponsorship? Beyond Border helps founders set up entities that satisfy immigration requirements while supporting business goals.
Founder employment agreement O-1 documents must cover all essential employment terms clearly. Specify your title, role description, and specific duties you'll perform. Don't use vague language like "general business activities." Instead, detail your responsibilities like "developing product strategy, overseeing engineering team, managing investor relations, and establishing strategic partnerships." The more specific your job description, the better USCIS understands your actual work and its importance to the company.
Compensation structure needs clear documentation including all components. Specify base salary, equity grants with vesting schedules, bonuses tied to performance metrics, and any other benefits. If you're taking low cash salary initially while building the company, explain this strategy in supporting documents. Perhaps you're prioritizing equity over cash compensation because you believe in the company's long-term value. This rationale makes sense for startups and doesn't weaken your O-1 case as long as total compensation (including equity value) is substantial relative to industry standards.
Include proper employment terms like start date, initial duration, renewal provisions, and termination conditions. The agreement should specify that your board has authority to terminate your employment for cause or company performance reasons. This proves genuine supervision exists. Specify notice periods and severance terms if applicable. While you might never actually enforce these provisions, their presence demonstrates a real employment relationship subject to normal employment law principles rather than just you paying yourself from your own company randomly.
Need help drafting O-1 compliant employment agreements? Beyond Border works with founders and attorneys to create employment contracts that satisfy immigration requirements.
Agent agreement O-1 visa arrangements provide maximum flexibility for founders. An agent can be an individual, talent agency, management company, or specialized visa sponsorship organization. The agent petitions for your O-1 on behalf of your actual clients or company. This structure works well when you want flexibility to work on multiple projects, pivot your business, or don't yet have your startup fully established. The agent becomes the petitioner instead of your company, changing the paperwork structure but not your actual work authorization.
Agent agreements must specify the relationship clearly. Document how you'll be compensated, which projects or clients you'll work with, and the agent's role in managing your US employment. Include provisions explaining that you'll work primarily for your startup but the agent relationship allows flexibility for other activities. This setup lets you consult, advise other companies, or pivot your business without filing amendments. The agent agreement should list your startup as the primary client with provisions for additional clients or projects as opportunities arise.
Choose agents carefully based on their experience with O-1 visas for founders. Some agents specialize in entertainers or athletes but don't understand founder situations. Look for agents with successful track records filing for tech entrepreneurs. Check references and ask about approval rates. Agent fees typically range from $3,000 to $10,000 for petition preparation and filing, separate from attorney fees. Factor these costs into your budget when deciding between agent sponsorship and direct company sponsorship.
Considering agent sponsorship for flexibility? Beyond Border connects founders with experienced agents and structures compliant agent agreements.
Self-sponsored O-1 tech founders must establish proper board oversight to satisfy supervision requirements. Create a board with at least three members including at least one independent director. The independent director should be someone with relevant experience who isn't your family member or financially dependent on you. Perhaps an advisor, investor, or respected industry figure serves in this role. Document their qualifications and independence clearly in your petition to prove genuine oversight exists.
Board authority over your employment must be real and documented. Adopt bylaws specifying the board can hire, supervise, evaluate, and terminate executives including you. Hold regular board meetings with documented minutes showing the board reviews your performance, approves major decisions, and provides genuine oversight. Even if these meetings are brief and you maintain significant control as founder, the formal process proves a governance structure exists. Board resolutions appointing you to your role, approving your compensation, and setting performance objectives all strengthen the employment relationship documentation.
Investors on your board naturally provide independent oversight. If you've raised venture capital, your investors likely already require board seats. Leverage this existing governance structure for your O-1 petition. Investors have every incentive to ensure you're performing well, providing natural supervision. Include term sheets, shareholder agreements, and board composition documents showing investor oversight. Letters from investor board members confirming they supervise your performance and could remove you if necessary provide powerful evidence of legitimate governance.
Setting up proper board governance for O-1? Beyond Border helps founders establish compliant corporate governance while maintaining operational control.
O-1 employment contract founders should document compensation thoroughly including all components. Specify base salary in your employment agreement even if it's modest initially. Many founders take low salaries ($60,000-$100,000) while building their companies. This is acceptable as long as you document equity compensation bringing total compensation to substantial levels. Calculate equity value using your most recent valuation from investors or a professional valuation if you're pre-funding. Show total compensation including equity exceeds industry averages for your role and experience.
Payment mechanisms matter for documentation purposes. As a founder, you'll likely pay yourself through regular payroll rather than irregular distributions. Establish proper payroll with tax withholding even if you're the only employee initially. This creates formal documentation of the employment relationship. Provide pay stubs, W-2 forms, and bank statements showing regular deposits. If you're using a contractor relationship instead, provide 1099 forms and contracts specifying payment terms. Either structure works as long as documentation is comprehensive and consistent.
Board approval of your compensation adds credibility to the employment relationship. Include board resolutions or meeting minutes where the board reviewed and approved your compensation package. This proves compensation isn't just you deciding how much to pay yourself but results from board oversight and approval. If investors participated in setting your compensation, include correspondence showing their involvement. This third-party validation by sophisticated investors proves your compensation reflects market rates and appropriate governance oversight.
Need help documenting founder compensation properly? Beyond Border helps tech entrepreneurs structure and document compensation for O-1 compliance.
Company structure O-1 visa requirements don't end at approval. Maintain compliance throughout your O-1 validity period through proper corporate governance. Hold regular board meetings at least quarterly with documented minutes. Keep your employment agreement current and amend it as your role evolves. File all required corporate documents with your state, maintain registered agent status, and keep corporate records organized. USCIS can request evidence of continued compliance during extension applications or if questions arise.
When your company circumstances change, evaluate whether visa amendments are needed. Significant changes to job duties, work location, or company structure might require filing amended petitions. Minor changes typically don't require amendments but should be documented in case USCIS asks questions later. Consult immigration counsel before making major company changes like mergers, acquisitions, or significant pivots. Proactive consultation prevents problems better than trying to fix compliance issues after they arise.
Plan for extensions well before your current O-1 expires. Extension petitions require updated evidence of your continuing extraordinary ability and company operations. Collect new achievements, updated letters of recommendation, and documentation showing your company's progress. Extension applications filed 6 months before expiration ensure you maintain continuous status. Premium processing guarantees 15-day decisions but costs $2,805. Budget this cost into your planning if you need predictable timing.
Maintaining O-1 compliance and planning extensions? Beyond Border provides ongoing support ensuring founders maintain proper corporate structure and visa status.
Can founders sponsor their own O-1 visas? Yes, self-sponsored O-1 tech founders can have their companies petition when proper board oversight exists, with at least one independent director having authority to supervise or terminate employment.
What company structure works best for founder O-1 visas? Delaware C-corporations work best for O-1 visa company setup because they provide clear governance structures, board requirements, and investor compatibility that satisfy USCIS supervision requirements.
Do I need to pay myself a high salary for O-1 visa? No, founders can take modest salaries initially as long as total compensation including equity value is substantial and board-approved, with documentation showing equity value through valuations or funding rounds.
How does agent sponsorship work for O-1 tech founders? Agent agreement O-1 visa arrangements let agents petition on your behalf, providing flexibility to work on multiple projects or pivot businesses without filing amendments for each company change.
