I have the prefect co-founder with a visa issue, so I'll just ask it straight. Can someone with an h1b, who has already started the green card process, be a co-founder in a YC company?
YC doesnt care about visa issues. You have a lot more than most people, visa-wise.
Good founders are resourceful. You'll make the visa stuff work, because you'll have to.
That said, it is a risk. If your cofounder quits, he may have to leave the country, and may not get back in on visa waiver since he has shown intent to emigrate.
So go ahead and apply to YC. They wont even ask about visas. But talk to a lawyer now, so you can get started on making this work.