Shilpa Malik 
Boris Ignachkov 
The H-1B visa is available to anyone who gets a specialty job with a U.S. company. However, even if a company technically qualifies for the H-1B, not all situations are the same. For small businesses, some hurdles need to be overcome before committing to this visa path for a worker. For workers, it is important to know these hurdles to effectively choose an employer that can see the process all the way through. In this post, we’ll address the main question, “Can a small business sponsor an H-1B Visa??”
How the H-1B Visa Works
If you are new to the world of immigration law or just the H-1B visa, here is a rundown of what goes into this popular work visa.
To get an H-1B, you must have a full or part-time job offer from a U.S. employer for a specialty position that requires a bachelor’s degree. You must also have the required degree. Because the barrier to entry is low, there has been an influx of petitioners over the past several years.
To manage this, the USCIS has instituted an annual lottery for the H-1B in which 85,000 total petitions are randomly selected to go on to processing. All unselected petitions are returned along with their fees, and you will need to wait until the next year to file again.
Now, there are ways to get around this lottery and file a cap-exempt petition. These include:
- Having a cap-exempt employer (i.e., an institute of higher education, a nonprofit associated with an institute of higher education, or a governmental research center)
- Filing to extend your status on an H-1B visa
- Filing to transfer your H-1B status to another employer
In any of these cases, your petition will not be entered into the cap and will go straight to processing. In all other cases, you will have to file the petition as soon as the lottery window opens on March 7.
The petition (an I-129 form) needs to be filed along with a Labor Condition Application, any necessary supporting evidence, and the required fees.
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Keep in mind that the employer is responsible for filing these items and fees, and it is not legal to have the beneficiary pay or file.
If the petition is subject to the cap and is selected in the lottery, then it will go on to processing, where it will be either approved, denied, or rejected. If it is approved, then the employee will not be able to start working until October 1st of the year that the petition was filed.
What Goes Into H-1B Sponsorship?
Every year, 65,000 H-1B visas are made available for first-time applicants and an additional 20,000 for higher degree holders, but in past years, that quota was met five days after the application date. Many small businesses are advocating a higher quota or seeking a simpler application process that wouldn’t dedicate as much time and resources.
Find Out How A Small Business Can Sponsor a Green Card.
Leading technology companies have advocated for an increase in H-1B visas to Congress members. Companies such as Microsoft Corp, Intel Corp, and Facebook Inc. are some of the few that are raising awareness of the cause. Even though Senate lawmakers have approved an annual H-1B cap increase, small business employers still face the disadvantage of competing against major technology companies in attracting H-1B talent.
Recommended read: Learn how to get a green card without sponsorship.
If you are selected in the 2025-26 H-1B visa lottery, contact VisaNation attorneys for filing your H-1B petition.
Challenges to Small Companies
Small businesses and startups may face challenges when seeking funds to carry out the H-1B hiring process while simultaneously retaining the best talent.
Alden Zecha, the chief financial officer of Sproxil, Inc. said, “We’re looking for qualified individuals, and if they’re U.S. nationals, that would be easier for us.” Mr. Zecha hopes that a portion of H-1B visas can be segregated just for smaller businesses and startups to eliminate the competition against large employers.
1. Requirements for Employers
- The employer must have the financial resources to pay the employee.
- They must demonstrate that they do not intend to displace U.S. workers.
- The H-1B employee will be working at the worksite specified in the filing.
For small companies, the burden lies on them to prove to USCIS that they have the financial stability to support the employee during their period of employment. This can be done by showing balance sheets, income statements, tax returns, work contracts, etc. While the H-1B visa is a great option due to its streamlined process, it may not always be the most appropriate or feasible option for small businesses.
Discuss other alternatives as a backup option with your immigration attorney.
2. The LCA
The Labor Condition Application is a document obtained from the Department of Labor that obligates the employer to make four attestations:
- That there are no strikes or lockouts taking place at the beneficiary’s proposed place of work (essentially that he or she is not replacing striking workers)
- Hiring the beneficiary will not negatively impact the employer’s current workforce
- The current employees have been notified of the employer’s attempt to hire the beneficiary
- That the employer will pay the beneficiary the prevailing wage as a minimum, a wage determined by the Department of Labor based on the position and the geographic location of the work
While the LCA is instituted to protect the current U.S. workers, it can present a problem for small companies, particularly that final attestation. An employer needs to be able to prove through bank statements and tax documents that they are capable of and prepared to pay the prevailing wage to the beneficiary. For small companies and startups, this can be a very difficult thing to prove.
If you are selected in the 2025-26 H-1B visa lottery, contact VisaNation attorneys for filing your H-1B petition.
3. The Cost
Many small businesses don’t recognize the cost involved in hiring an H-1B worker. Here are the fees for a small company as of the writing of this post:
- Registration Fee: $215
- Basic Filing Fee: $780 for bigger companies; $460 for small employers and nonprofits
- (ACWIA) Training Fee: $750- $1,500
- Public Law 114-113 Fee: $4,000 for companies with more than 50 employees with over half on H-1B or L-1 status
- Asylum Program Fee: $600 for employers with 26 or more Full-Time Employees (FTEs); $300 for small employers (25 FTEs or less); $0 for nonprofit organizations
- Fraud Prevention and Detection Fee: $500
- Premium Processing: $2,805
These fees may be a drop in the bucket to a larger company, but can easily be a burden on the fledgling budget of a smaller business.
Additionally, if the petition is not approved (for example, if it was determined that you are unable to pay the prevailing wage), then all of those fees are lost and not refundable. Thus, consider the expense of this process before beginning the immigration journey.
Can a small business sponsor an H-1B Visa?
Based on the above information, a small business can sponsor an H-1B visa, but several factors make the process more challenging compared to larger companies.
Self-Petitioning – H1B for Entrepreneurs
USCIS now permits H-1B petitions to be filed by a U.S. company that is owned by the beneficiary – essentially self-sponsoring. This new category has been dubbed an H-1B visa for entrepreneurs.
You still, however, must prove that a bonafide employer-employee relationship exists. Because this is such a complex and relatively confusing process, it’s best to seek professional legal help from an attorney before attempting this.
If you are selected in the 2025-26 H-1B visa lottery, contact VisaNation attorneys for filing your H-1B petition.
Green Card
Additionally, for small businesses, keep in mind that many H-1B holders use this visa as a stepping stone to an employment-based green card. Like the H-1B, the process for getting a green card is difficult and costly. If you are not prepared to sponsor your H-1B employee, understand that he or she will likely look elsewhere for sponsorship during their employment with you.
Tips for Small Businesses Looking to Sponsor an H1B Visa
1. Assess Financial Resources Early
Ensure that your business can afford the costs associated with the H-1B visa application, including filing fees, prevailing wage requirements, and additional costs such as premium processing. Have clear financial documentation ready, like balance sheets and tax returns, to prove your financial stability.
2. Consult with an Immigration Attorney
Navigating the H-1B process can be complex, especially for small businesses. A qualified immigration attorney can help guide you through the requirements and ensure all documentation is complete to avoid costly mistakes.
3. Focus on Specialized Roles
H-1B visas are for specialized jobs that require specific expertise. Make sure the job you are hiring for meets these criteria. It is mandatory to prove to USCIS that you require a foreign worker’s specialized skills.
4. Prepare for High Competition
Be aware that the H-1B lottery system is highly competitive. Consider submitting applications early and ensuring that the role you’re hiring for is critical to your company’s success, which can increase the likelihood of selection in the lottery.
5. Consider Alternative Visas
If an H-1B sponsorship is not feasible, consider other visa options such as the L-1 (for intra-company transferees) or O-1 (for individuals with extraordinary ability). These visas may have different eligibility requirements and could be a better fit for your business needs.
Frequently Asked Questions
Below, you will find answers to the most commonly asked questions about this topic:
Does a startup have to have tons of money in the bank to go through the H-1B process?
Not necessarily; however, this is something you should thoroughly discuss with your immigration attorney. If you are able to demonstrate that there is tangible expected income from upcoming projects and the need for employees that won’t displace qualified U.S. workers, that can be enough to make your case.
Is a new startup able to file H-1B visas?
The age of the company is not the determining factor, assuming they meet the other requirements (including having an IRS tax number) and can demonstrate a need for the employees.
How much does it cost a company to sponsor an H1B?
The fees are outlined in the paragraph above, many of which depend on the size of the organization.
What is an RFE?
An RFE is a Request for Evidence for the H-1B petition. In other words, USCIS needs more information to be able to make a decision on your case. Below are some of the top reasons for RFEs to be issued. These can include:
- Determination of a specialty occupation
- Petitions filed on behalf of businesses for professionals not typically associated in that field
- Degree in a separate field of study
- Questionable employer-employee relationship
- Requests for an extension or change of status
- LCA issues
- Job itinerary issues
- Living far away from your place of work
- AC21 and the six-year limit
- F-1 OPT or CPT
- In-house projects at consulting companies
It’s important to submit your response before the deadline period ends. If you miss the deadline, then you’ll likely receive a denial, at which point you’ll have to file a motion to reopen the case.
VisaNation Law Group attorneys have an excellent track record of responding to RFEs and securing approvals for our clients.
How VisaNation Law Group Immigration Attorneys Can Help
Embarking on any immigration journey without the help of an expert is inadvisable. Just like you would hire a contractor to perform an inspection or a realtor to sell a home, an immigration attorney is there to protect your investment. Sponsoring someone for a visa is a long, complicated, and expensive process. Getting a lawyer can help you make sure that it’s done right the first time.