I am not sure if your questions were rhetorical or not but I don't think you want them answered. I am happy to explain the situation though. She did not take a visa to circumvent the law, she has been here for years and we came up with this idea a few months ago. It's not remote applicable. So everything you said is true in a legal sense but it's unlikely any of it happens and now there is a very large fee for new applications so it's a very high risk to move back and then reapply. The reality of startups is at first they may not make enough money to support an H1-B so we're not sure how to make enough money to get her one without already having done work. I don't think this violates the intention of the H1-B it just creates a situation where starting a startup is very murky but working at a large firm is fine. I am not sure the intention of the law was meant to bias in favor of H1-B only benefitting large corporations.