Running a side-business while on H-1B?

[Toaster]

This question has puzzled me for a while. I've resided in the US for a couple of years now through a H-1b sponsored by my employer, and I'm contributing to a startup in my spare time as co-founder.

What can I and can't do in terms of running this business while on a H-1b? I went to an immigration lawyer a few months ago and he said it was a bit of a grey area and that he'd have needed at least a grand or more to research that question (which in my opinion he clearly knew the answer to, but simply wanted more cash than my measly $300).

In his words, generally speaking I can "do business" in the US all I wanted as long as I wasn't receiving salaried income, but I haven't had the chance to confirm this yet. What happens if my "part-time company" receives investment and I'm a co-owner? Would that be breaking any laws?

Thanks guys!

 

[angela20]

The only type of business you (as a non-US resident) can incorporate in the US, is a C corporation. That allows you to incorporate a company in any state of the US, but you need to have a foreign address. So in-corporation is possible.