Must-Know Facts: H-1B Sponsorship and Small Businesses
Breaking News: A new proclamation introduces a $100,000 fee for new H-1B petitions. At Green Card Link, its immigration attorneys are closely monitoring the changes, including important exclusions, and are prepared to help clients strategize effectively.
While H-1B sponsorship is possible for small companies, the associated costs and compliance hurdles often present challenges. Navigating this process can be complicated, but with the guidance of experienced immigration attorneys at Green Card Link, employers and employees alike can avoid costly errors and improve their chances of success.
The H-1B visa is open to foreign nationals who receive a specialty occupation offer from a U.S. employer. However, not every situation is straightforward—particularly for small businesses. Before moving forward, both employers and workers should understand the unique obstacles that small companies face. This article explores the key question: “Can a small business sponsor an H-1B visa?”
How the H-1B Visa Works
To qualify for an H-1B visa, you must:
- Have a part-time or full-time job offer from a U.S. employer in a specialty occupation requiring at least a bachelor’s degree.
- Hold the appropriate degree or equivalent qualification.
Because the application threshold is relatively low, demand has surged in recent years. To manage this, USCIS conducts an annual lottery to select 85,000 registrations.
Cap-Exempt Options
Some petitions bypass the lottery entirely:
- Employment with a cap-exempt employer (e.g., universities, nonprofits tied to higher education, or government research centers)
- Extensions of H-1B status
- Transfers to another employer
All other petitions must be filed as soon as the lottery window opens—typically in March—with selected cases moving on to processing.
Filing Requirements
Employers must file:
- Form I-129
- A certified Labor Condition Application (LCA)
- Supporting evidence
- Required filing fees
It is important to note that employers, not employees, are legally responsible for covering these costs. If selected in the lottery, petitions are reviewed and may be approved, denied, or rejected. Approved employees generally cannot begin working until October 1 of that year.
What Goes Into H-1B Sponsorship
Each year, 65,000 H-1B visas are reserved for bachelor’s degree holders, plus 20,000 more for advanced degree holders. Demand regularly outpaces supply within days. While large tech corporations advocate for expanded quotas, small businesses often struggle to compete for talent.
Even though lawmakers have considered increases, smaller employers remain at a disadvantage against global tech leaders. This is why many small businesses explore alternative visa or green card pathways in consultation with the immigration attorneys at Green Card Link.
Challenges Small Companies Face
1. Employer Requirements
Small businesses must prove:
- Financial ability to pay the H-1B worker
- That hiring will not displace U.S. workers
- The employee will work at the designated job site
USCIS often requests proof such as balance sheets, tax returns, income statements, and contracts. For startups or smaller organizations, meeting these requirements can be a significant challenge.
2. The Labor Condition Application (LCA)
Employers must attest that:
- No strikes or lockouts are ongoing
- Hiring will not adversely affect current employees
- Existing workers have been informed
- The foreign worker will be paid at least the prevailing wage
The last requirement is particularly difficult for startups, which must provide strong evidence of their ability to pay competitive wages.
3. The Cost of Sponsorship
Small businesses are often surprised by the costs. Current fees for small employers and nonprofits include:
- Registration Fee: $215
- Basic Filing Fee: $460
- ACWIA Training Fee: $750
- Asylum Program Fee: $300 (waived for nonprofits)
- Fraud Prevention Fee: $500
- Premium Processing (optional): $2,805
With the newly announced $100,000 fee for new H-1B petitions, costs may rise dramatically depending on exemptions. Employers should work closely with immigration attorneys at Green Card Link to explore all options.
Can a Small Business Sponsor an H-1B Visa?
Many small business owners wonder whether they can sponsor an H-1B visa. The answer is yes—small businesses can petition for H-1B employees. However, the process can be more complex and demanding compared to larger companies due to stricter scrutiny of financial and operational stability.
H-1B for Entrepreneurs: Self-Petitioning Options
USCIS allows an H-1B petition to be filed by a U.S. company that is owned by the beneficiary, creating opportunities for entrepreneurs. This is often referred to as the H-1B for entrepreneurs or self-sponsored H-1B visa.
Even in this scenario, petitioners must prove a legitimate employer-employee relationship exists. Because the process is complicated and often misunderstood, it is strongly recommended to work with an immigration attorney at Green Card Link to structure your case properly.
If you are selected in the upcoming 2026–2027 H-1B lottery, consulting with immigration attorneys at Green Card Link is the best next step for filing a strong petition.
Transitioning from H-1B to Green Card
For many employees, the H-1B is a stepping stone toward permanent residency. However, sponsoring an employment-based green card involves significant costs and long processing times. If a small business is not prepared to pursue sponsorship, employees may ultimately look for larger employers willing to support their green card journey.
Tips for Small Businesses Sponsoring an H-1B Visa
- Assess Financial Resources Early
Ensure your company can cover all expenses, including USCIS filing fees, prevailing wage requirements, and premium processing costs if applicable. Maintain clear financial documentation—such as tax returns, payroll records, and balance sheets—to demonstrate financial stability. - Work with an Immigration Attorney
The H-1B process is complex, particularly for startups and small businesses. Partnering with an immigration attorney at Green Card Link can help you avoid costly mistakes and ensure your petition is fully compliant with USCIS requirements. - Hire for Specialized Roles
H-1B visas are strictly reserved for specialty occupations requiring advanced knowledge. Be prepared to prove that your role requires highly specialized skills that justify the need for a foreign worker. - Prepare for Intense Competition
The H-1B lottery is highly competitive. Submitting a well-documented application and emphasizing the critical nature of the position can improve your chances of selection. - Explore Alternative Visa Options
If H-1B sponsorship is not viable, consider other visa categories such as the L-1 visa (for intracompany transferees) or the O-1 visa (for individuals with extraordinary ability). These may better suit your business needs and timelines.
Frequently Asked Questions
Does a startup need significant funds in the bank to file an H-1B?
Not always. While financial stability is important, USCIS may also consider evidence of upcoming contracts or revenue streams that justify hiring a specialized employee. Discussing your situation with an immigration attorney at Green Card Link can help determine eligibility.
Can a new startup sponsor H-1B employees?
Yes, provided the company has a valid IRS tax identification number, meets USCIS requirements, and demonstrates a legitimate business need for the position.
How much does it cost for a company to sponsor an H-1B?
Costs vary depending on company size and whether premium processing is requested. Filing fees, legal fees, and compliance expenses should all be factored into your budget.
What is an RFE?
A Request for Evidence (RFE) is a notice from USCIS requesting additional documentation before a decision is made. Common RFE triggers include:
- Proving the position qualifies as a specialty occupation
- Degree or field of study discrepancies
- Questionable employer-employee relationships
- LCA or worksite issues
- Requests related to OPT/CPT transitions or in-house projects
If you receive an RFE, timely and thorough responses are critical. An immigration attorney at Green Card Link can help craft a strong response to improve approval chances.
Why Partner with Green Card Link?
Sponsoring an H-1B visa is a major investment. Just as you would hire experts for financial or real estate matters, working with experienced immigration attorneys at Green Card Link ensures your case is handled correctly from the beginning.
Whether you are a small business owner sponsoring your first foreign employee or an entrepreneur applying under the H-1B for entrepreneurs pathway, at Green Card Link, its immigration attorneys are ready to guide you every step of the way.