H-1 Can open  corporation. You cannot work for the company though unless you apply another H-1b. But I heard it is not easy to be approved since your company is new. If you take any money from the company, you has to pay capital gain. For what I know is that you can have many options to choose from when you set up a company. However, for Tax purpose, there is a little options. I know this is confuse. If you really what to have a company here, try U.S. Small Business Administration: http://www.sba.gov/ you can find many useful information there. More importantly, you can find a free counsel, assist and protect the interests of small business concerns from there.