H-1B for Startups 2026: Can a New Company Sponsor H-1B?

Can startups sponsor H-1B visas? Requirements, costs, and strategies for new companies seeking to hire foreign workers in 2026.

Can startups sponsor H-1B visas? Requirements, costs, and strategies for new companies seeking to hire foreign workers in 2026.

QUICK ANSWER

Yes, startups can sponsor H-1B visas. There is no minimum company size, revenue, or age requirement. The startup must demonstrate a legitimate specialty occupation, ability to pay the prevailing wage, and a valid employer-employee relationship. Government fees include $1,055 (I-129) + $600 (Asylum) + $500 (fraud) + $750 (ACWIA for small employers). The September 2025 Presidential Proclamation added a $100,000 fee for new H-1B petitions. Premium processing costs $2,805 ($2,965 after March 1, 2026).

KEY TAKEAWAYS

  • No minimum company size, revenue, or employee count is required to sponsor an H-1B visa.

  • The startup must demonstrate ability to pay the prevailing wage through tax returns, bank statements, or funding documentation.

  • A valid employer-employee relationship must exist - USCIS scrutinizes founder/owner petitions more closely.

  • The September 2025 Presidential Proclamation added a $100,000 fee for new H-1B petitions, significantly impacting startup budgets.

  • Startups subject to the annual cap must go through the lottery (85,000 slots, approximately 25-30% selection rate).

  • Alternative visa options include the O-1A (no lottery, no cap) and E-2 (treaty investor).

  • Small employers (fewer than 25 employees) pay reduced fees: $530 I-129 fee and $300 Asylum Program Fee.

KEY TAKEAWAYS

  • No minimum company size, revenue, or employee count is required to sponsor an H-1B visa.

  • The startup must demonstrate ability to pay the prevailing wage through tax returns, bank statements, or funding documentation.

  • A valid employer-employee relationship must exist - USCIS scrutinizes founder/owner petitions more closely.

  • The September 2025 Presidential Proclamation added a $100,000 fee for new H-1B petitions, significantly impacting startup budgets.

  • Startups subject to the annual cap must go through the lottery (85,000 slots, approximately 25-30% selection rate).

  • Alternative visa options include the O-1A (no lottery, no cap) and E-2 (treaty investor).

  • Small employers (fewer than 25 employees) pay reduced fees: $530 I-129 fee and $300 Asylum Program Fee.

Table of Content

Can Startups Sponsor H-1B Visas?

Yes. U.S. startups can sponsor H-1B visas regardless of company size, age, or revenue. USCIS does not impose minimum requirements for these factors. However, the startup must meet all standard H-1B requirements: a legitimate specialty occupation, ability to pay the prevailing wage, and a valid employer-employee relationship.

Startups face additional scrutiny because they often have limited financial history, small teams, and sometimes involve founders who are both petitioner and beneficiary.

Learn more about the H-1B visa

Key Requirements for Startups

Ability to Pay

This is the most common challenge. USCIS evaluates through:

  • Tax returns (for companies with filing history)

  • Bank statements showing sufficient funds

  • Venture capital documentation (term sheets, SAFE agreements)

  • Financial statements (audited or unaudited)

Employer-Employee Relationship

For founder-petitions where the beneficiary owns a majority of the company, USCIS questions whether a valid relationship exists. Solutions include board of directors oversight, investor control provisions, or minority ownership structures.

Specialty Occupation

The position must require at least a bachelor's degree in a specific field. Provide detailed job descriptions with specific technical requirements.

Startup-Specific Challenges and Solutions

Challenge

Solution

No revenue history

Provide funding docs, bank statements, investor letters

Small team (1-5 employees)

Detailed org chart, growth projections, client contracts

Founder as beneficiary

Document board oversight, investor governance

Generic job description

Specify technologies, projects, degree requirements

High total fees

Explore O-1A as alternative (lower fees, no lottery)

Step-by-Step Process

Step 1: Register during the H-1B lottery window ($215). Step 2: If selected, file an LCA with DOL. Step 3: File Form I-129 with financial and operational evidence. Step 4: Respond to any RFEs with detailed documentation. Step 5: Worker begins employment upon approval (October 1 for cap-subject).

Processing Time and Costs 2026

Item

Cost (Small Employer)

Cost (Large Employer)

Registration

$215

$215

I-129 filing fee

$530

$1,055

Asylum Program Fee

$300

$600

Anti-fraud fee

$500

$500

ACWIA fee

$750

$1,500

Presidential Proclamation fee

$100,000

$100,000

Premium processing

$2,805

$2,805

Total (with premium + Proclamation)

$105,100

$106,675

Alternative Visas for Startup Founders

Visa

Advantage

Key Requirement

O-1A

No lottery, no cap, lower total fees

Extraordinary ability (3 of 8 criteria)

E-2

No lottery, business investment

Treaty country + substantial investment

L-1A

Intracompany transfer, no cap

1 year with foreign company

EB-2 NIW

Green card, self-petition

Advanced degree + national interest

EB-1A

Green card, self-petition

Extraordinary ability (3 of 10 criteria)

Learn more about the O-1A visa Learn more about the E-2 visa

Common Mistakes

1. Not Documenting Financial Ability

Include funding documentation, bank statements, and investor letters proactively.

2. Weak Employer-Employee Relationship for Founders

Establish board governance or investor oversight to demonstrate a valid relationship.

3. Generic Job Descriptions

Provide specific technical requirements, projects, and degree specifications.

4. Not Exploring Alternatives

Given the $100,000 Proclamation fee, many startups find the O-1A visa more cost-effective.

Sources

Disclaimer: OpenSphere is not a law firm and does not provide legal advice. This article is for informational purposes only and should not be considered legal counsel. Immigration laws change frequently; always consult with a licensed immigration attorney for advice specific to your situation.

Not sure which visa is right for you? Take OpenSphere's free visa evaluation to get a personalized recommendation in minutes.

Can Startups Sponsor H-1B Visas?

Yes. U.S. startups can sponsor H-1B visas regardless of company size, age, or revenue. USCIS does not impose minimum requirements for these factors. However, the startup must meet all standard H-1B requirements: a legitimate specialty occupation, ability to pay the prevailing wage, and a valid employer-employee relationship.

Startups face additional scrutiny because they often have limited financial history, small teams, and sometimes involve founders who are both petitioner and beneficiary.

Learn more about the H-1B visa

Key Requirements for Startups

Ability to Pay

This is the most common challenge. USCIS evaluates through:

  • Tax returns (for companies with filing history)

  • Bank statements showing sufficient funds

  • Venture capital documentation (term sheets, SAFE agreements)

  • Financial statements (audited or unaudited)

Employer-Employee Relationship

For founder-petitions where the beneficiary owns a majority of the company, USCIS questions whether a valid relationship exists. Solutions include board of directors oversight, investor control provisions, or minority ownership structures.

Specialty Occupation

The position must require at least a bachelor's degree in a specific field. Provide detailed job descriptions with specific technical requirements.

Startup-Specific Challenges and Solutions

Challenge

Solution

No revenue history

Provide funding docs, bank statements, investor letters

Small team (1-5 employees)

Detailed org chart, growth projections, client contracts

Founder as beneficiary

Document board oversight, investor governance

Generic job description

Specify technologies, projects, degree requirements

High total fees

Explore O-1A as alternative (lower fees, no lottery)

Step-by-Step Process

Step 1: Register during the H-1B lottery window ($215). Step 2: If selected, file an LCA with DOL. Step 3: File Form I-129 with financial and operational evidence. Step 4: Respond to any RFEs with detailed documentation. Step 5: Worker begins employment upon approval (October 1 for cap-subject).

Processing Time and Costs 2026

Item

Cost (Small Employer)

Cost (Large Employer)

Registration

$215

$215

I-129 filing fee

$530

$1,055

Asylum Program Fee

$300

$600

Anti-fraud fee

$500

$500

ACWIA fee

$750

$1,500

Presidential Proclamation fee

$100,000

$100,000

Premium processing

$2,805

$2,805

Total (with premium + Proclamation)

$105,100

$106,675

Alternative Visas for Startup Founders

Visa

Advantage

Key Requirement

O-1A

No lottery, no cap, lower total fees

Extraordinary ability (3 of 8 criteria)

E-2

No lottery, business investment

Treaty country + substantial investment

L-1A

Intracompany transfer, no cap

1 year with foreign company

EB-2 NIW

Green card, self-petition

Advanced degree + national interest

EB-1A

Green card, self-petition

Extraordinary ability (3 of 10 criteria)

Learn more about the O-1A visa Learn more about the E-2 visa

Common Mistakes

1. Not Documenting Financial Ability

Include funding documentation, bank statements, and investor letters proactively.

2. Weak Employer-Employee Relationship for Founders

Establish board governance or investor oversight to demonstrate a valid relationship.

3. Generic Job Descriptions

Provide specific technical requirements, projects, and degree specifications.

4. Not Exploring Alternatives

Given the $100,000 Proclamation fee, many startups find the O-1A visa more cost-effective.

Sources

Disclaimer: OpenSphere is not a law firm and does not provide legal advice. This article is for informational purposes only and should not be considered legal counsel. Immigration laws change frequently; always consult with a licensed immigration attorney for advice specific to your situation.

Not sure which visa is right for you? Take OpenSphere's free visa evaluation to get a personalized recommendation in minutes.

Frequently Asked Questions

Can a startup with no revenue sponsor an H-1B?

Yes. The startup must demonstrate ability to pay through other means such as venture capital funding, bank statements, or investor commitments. A startup with $1M+ in funding can demonstrate ability to pay even without revenue. USCIS may issue an RFE requesting additional financial documentation.

Can a startup with no revenue sponsor an H-1B?

Can a startup founder sponsor themselves for an H-1B?

It is possible but complex. The company can file the petition, but USCIS requires a valid employer-employee relationship. Majority owners face scrutiny - board oversight or investor control provisions help. Many founders find the O-1A visa simpler since it avoids this employer-employee issue.

Can a startup founder sponsor themselves for an H-1B?

Is the H-1B the best visa for startup founders in 2026?

Often not. The lottery (25-30% selection rate) and $100,000 Presidential Proclamation fee make H-1B expensive and uncertain. The O-1A visa (no lottery, no cap, lower fees) is frequently preferred for founders with extraordinary ability. The E-2 treaty investor visa is another option for founders from treaty countries.

Is the H-1B the best visa for startup founders in 2026?

What is the $100,000 Presidential Proclamation fee?

On September 19, 2025, a Presidential Proclamation introduced a $100,000 fee for new H-1B petitions filed after September 21, 2025. This is in addition to standard filing fees. The fee significantly impacts startup budgets and has led many founders to explore alternative pathways. Consult a licensed immigration attorney for the latest requirements.

What is the $100,000 Presidential Proclamation fee?

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