"... 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."
I don't know how many startups have a board that can fire the founders...
Sad that Washington is so useless that even something as straightforward as "let really smart, educated, financed people in the country to start businesses that hire other people" is controversial.
Say, YC or other incubator can form a board that will formally control the founders but in reality it's in the incubator's best interest to let the founders do their thing
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You probably don't want to do that since it would invite quite a bit of scrutiny ...