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There are ways for someone in H-1B status to start a company and not in a roundabout way. The approach will depend in part on whether she will leave her current employer and get an H-1B through her startup, stay with her current employment and get a concurrent part-time H-1B through her startup, or just stay with her current employer and somehow work on her startup.

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If she is issued equity (reverse vesting restricted stock) and not paid a salary, does she still need work authorization for the startup?

> or just stay with her current employer and somehow work on her startup.

The first two options make sense but this latter option sounds like a risk. As I understand it, she can't earn any active income from this startup unless see has an I-129 for it. A share grant counts as income.

I mean, yeah you can work on a side project in your spare time that could become a business, but the moment employment and active income enters the picture that becomes something else.

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