I am on an F-1 visa and my friends want to start a party rental company. Is it legal for me to purchase the expensive equipment, like a photo booth, and collect a leasing fee, provided a US citizen manages all sales, delivery, and setup, and I do absolutely no work?
You can invest money in a business, but the government considers starting a business to be work. Because there is no official safe harbor guaranteeing that equipment leasing counts as purely passive investment, the safest route is to authorize the venture through Optional Practical Training (OPT).
You did the right thing by checking the rules before buying the equipment. By securing the right authorization first, you protect your visa status and keep your future options open.
You asked if doing absolutely no daily operational work automatically exempts you from being employed. It does not. The U.S. government explicitly defines starting your own business, or entrepreneurship, as work.
Immigration attorneys advise that while immigration law allows F-1 students to invest in a company and receive dividends, you are not permitted to operate the business, engage in business, or receive revenue or salary once it is established.
You also asked if leasing equipment constitutes unauthorized employment. The documents do not provide a safe harbor to guarantee that leasing equipment will be classified as a purely passive investment rather than unauthorized entrepreneurship. Because any venture classified as a business requires OPT authorization, relying only on a lack of daily work is risky.
