Quick Answer
When your employer closes, your visa status is at risk:
H-1B gives you 60-day grace period to find new sponsor; O-1 requires new petitioner or agent; L-1 status ends when company closes; employer-sponsored green cards may survive if I-140 was approved for 180+ days (AC21 portability).
The key is acting before the company officially closes - file for new status while still employed if possible.
Key Takeaways
Your visa is tied to employer
When employer closes, your work authorization typically ends.
60-day grace period applies
For most work visas, you have 60 days after employment ends to find new status.
O-1 is more portable
You can find new petitioner or use agent to maintain O-1 status.
Green card with approved I-140 (180+ days) has protection
AC21 portability allows you to continue green card process with new employer.
Act before company closes
If you see company failing, start job searching and visa planning immediately.
Self-petitioned green cards are safest
EB-1A and NIW don't depend on employer, so company closure doesn't affect them.
Key Takeaways
Your visa is tied to employer
When employer closes, your work authorization typically ends.
60-day grace period applies
For most work visas, you have 60 days after employment ends to find new status.
O-1 is more portable
You can find new petitioner or use agent to maintain O-1 status.
Green card with approved I-140 (180+ days) has protection
AC21 portability allows you to continue green card process with new employer.
Act before company closes
If you see company failing, start job searching and visa planning immediately.
Self-petitioned green cards are safest
EB-1A and NIW don't depend on employer, so company closure doesn't affect them.
Table of Content
H-1B: What Happens When Company Closes
Immediate effect:
Your H-1B status ends when employment ends
60-day grace period begins
You cannot work during grace period
Your options:
Option 1: Find new H-1B sponsor (within 60 days)
Apply to jobs immediately
New employer files H-1B transfer
You can start working once transfer is filed
No lottery required (transfer, not new H-1B)
Option 2: Change to different status
B-1/B-2 (visitor): cannot work
F-1 (student): if returning to school
O-1 (if you qualify)
Option 3: Leave the U.S.
If no new sponsor found within 60 days
Depart before grace period ends
Best practice: Start job searching as soon as company shows signs of trouble. Don't wait for shutdown.
O-1: What Happens When Company Closes
Your situation:
O-1 is petition-based (your current employer petitioned)
When petitioner no longer exists, O-1 petition is affected
Your options:
Option 1: New employer files O-1 transfer
Find new employer willing to sponsor O-1
File O-1 transfer petition
Use premium processing (15 days)
Can start working once filed
Option 2: Use agent petitioner
Agent can petition for O-1 on your behalf
Work for multiple clients through agent
Continues your O-1 status
Good option for consultants or freelancers
Option 3: File O-1 for yourself (own company)
If you're starting new company, it can petition for you
Complex setup - need legitimate business structure
Consult attorney
O-1 advantage: Your evidence doesn't change. You already qualified for O-1, so transfer is typically straightforward if you find new petitioner.
L-1: What Happens When Company Closes
Your situation:
L-1 requires both foreign entity and U.S. entity to exist
If U.S. entity closes, L-1 basis is gone
Immediate effect:
L-1 status ends when company closes
60-day grace period begins
Cannot work during grace period
Your options:
Option 1: Find new employer for H-1B or O-1
New employer sponsors H-1B transfer (no lottery for transfers)
Or O-1 if you qualify
Option 2: Change to different status
B-1/B-2, F-1, or other status
Option 3: Return to foreign entity (if still operating)
If parent company abroad is still operating
Return and work from there
Potentially transfer to U.S. again later
L-1 challenge: L-1 is specifically for intracompany transfers. If company doesn't exist, L-1 is gone. Must switch to different visa type.
Employer-Sponsored Green Card: What Happens When Company Closes
The critical question: Was your I-140 approved for 180+ days?
If I-140 approved for 180+ days:
AC21 portability applies:
You can change employers
Green card process continues with new employer
Keep your priority date
New job must be in "same or similar" occupation
What you need to do:
Find new job in same/similar field
New employer doesn't need to file new I-140
Inform USCIS of job change (when I-485 is pending)
Green card process continues
If I-140 approved for less than 180 days:
More complex:
Original employer can withdraw I-140
If withdrawn, you lose priority date
New employer would need to file new I-140
Strategy: If company is failing and your I-140 is approaching 180 days, try to keep company operating until that threshold.
If I-140 not yet approved:
Most vulnerable:
If company closes before I-140 approval, case is typically abandoned
You lose everything filed so far
New employer would need to start from scratch
EB-1A and NIW: Unaffected by Company Closure
Why self-petitioned green cards are safest:
EB-1A (Extraordinary Ability):
You petitioned for yourself
No employer involved
Company closure doesn't affect your petition
Process continues regardless
EB-2 NIW (National Interest Waiver):
Self-petition
No employer dependency
Company closure doesn't affect your petition
This is why self-petitioned green cards provide insurance:
You're not dependent on employer
Job loss doesn't affect green card
Can change jobs, start companies, or be unemployed
Warning Signs Your Company Is Failing
Financial indicators:
Missed payroll
Layoffs accelerating
Runway running out (less than 3 months cash)
Failed fundraising attempts
Key executives leaving
Operational indicators:
Hiring freeze
Benefits being cut
Office downsizing
Major customers leaving
What to do when you see signs:
Start job searching immediately
Update your visa evidence (in case you need to file O-1)
Consult immigration attorney
Understand your I-140 status (if in green card process)
Timeline: Company Closure Scenario
Month -3 (Company showing trouble):
Start job searching
Update resume
Consult immigration attorney
Check I-140 status
Month -1 (Closure imminent):
Intensify job search
Explore O-1 agent options
Prepare visa documentation
Consider filing change of status preemptively
Month 0 (Company closes):
Last day of employment
60-day grace period begins
Focus entirely on finding new sponsor
Month 0-2 (Grace period):
Interview aggressively
Accept offer and get new petition filed
If H-1B: Can start working once transfer filed
If no offer: Consider B-1/B-2 change of status
Month 2+ (If no solution):
Leave U.S. before grace period ends
Continue job search from abroad
Return on new visa when sponsored
Special Considerations for Founders
If you're a founder and company is failing:
Option 1: Pivot the company
If company can pivot, you maintain visa basis
Restructure rather than close
Option 2: Acquihire
Larger company acquires your company (and you)
New company sponsors your visa
Smooth transition
Option 3: Join new company
Close failed company
Join new employer on H-1B or O-1 transfer
Use grace period to find new sponsor
Option 4: Start new company
If you have O-1, new company can petition for you
Complex but possible
Consult attorney on structure
How to Protect Yourself Before Company Fails
1. Pursue self-petitioned green card:
File EB-1A or NIW while still employed
Even if company fails, your green card process continues
2. Build O-1 evidence:
Keep publications, press, awards documented
If you need to file O-1 quickly, evidence is ready
3. Network continuously:
Maintain relationships with potential employers
Have backup job options identified
4. Know your I-140 status:
Check if I-140 is approved
Know when 180-day threshold occurs
Understand AC21 portability options
5. Save documentation:
Keep copies of all visa documents
Save I-797s, I-94s, pay stubs
Have everything ready for new applications
How OpenSphere Helps When Company Is Failing
Status Assessment
Input your current visa and green card status. OpenSphere shows your options if company closes.
Grace Period Countdown
If employment ended, OpenSphere tracks your 60-day grace period and deadlines.
AC21 Portability Check
If in green card process, OpenSphere evaluates whether AC21 protects you.
Backup Strategy
OpenSphere recommends actions to take while company is still operating: File EB-1A/NIW. Build O-1 evidence. Network for backup employers.
Comparison Table: Visa Impact When Company Closes
Visa Type | Effect of Company Closure | Grace Period | Best Option |
H-1B | Status ends | 60 days | H-1B transfer to new employer |
O-1 | Petitioner gone | 60 days | O-1 transfer or agent petition |
L-1 | Status ends (no related entity) | 60 days | Switch to H-1B or O-1 |
EB green card (I-140 180+ days) | AC21 portability applies | N/A | Find same/similar job |
EB green card (I-140 < 180 days) | May lose priority date | N/A | Try to keep company open until 180 days |
EB-1A / NIW | Unaffected | N/A | Process continues |
Worried about your company's stability and how it affects your visa? Want to understand your options before problems arise?
Take the OpenSphere evaluation. You'll get risk assessment and backup planning recommendations.
H-1B: What Happens When Company Closes
Immediate effect:
Your H-1B status ends when employment ends
60-day grace period begins
You cannot work during grace period
Your options:
Option 1: Find new H-1B sponsor (within 60 days)
Apply to jobs immediately
New employer files H-1B transfer
You can start working once transfer is filed
No lottery required (transfer, not new H-1B)
Option 2: Change to different status
B-1/B-2 (visitor): cannot work
F-1 (student): if returning to school
O-1 (if you qualify)
Option 3: Leave the U.S.
If no new sponsor found within 60 days
Depart before grace period ends
Best practice: Start job searching as soon as company shows signs of trouble. Don't wait for shutdown.
O-1: What Happens When Company Closes
Your situation:
O-1 is petition-based (your current employer petitioned)
When petitioner no longer exists, O-1 petition is affected
Your options:
Option 1: New employer files O-1 transfer
Find new employer willing to sponsor O-1
File O-1 transfer petition
Use premium processing (15 days)
Can start working once filed
Option 2: Use agent petitioner
Agent can petition for O-1 on your behalf
Work for multiple clients through agent
Continues your O-1 status
Good option for consultants or freelancers
Option 3: File O-1 for yourself (own company)
If you're starting new company, it can petition for you
Complex setup - need legitimate business structure
Consult attorney
O-1 advantage: Your evidence doesn't change. You already qualified for O-1, so transfer is typically straightforward if you find new petitioner.
L-1: What Happens When Company Closes
Your situation:
L-1 requires both foreign entity and U.S. entity to exist
If U.S. entity closes, L-1 basis is gone
Immediate effect:
L-1 status ends when company closes
60-day grace period begins
Cannot work during grace period
Your options:
Option 1: Find new employer for H-1B or O-1
New employer sponsors H-1B transfer (no lottery for transfers)
Or O-1 if you qualify
Option 2: Change to different status
B-1/B-2, F-1, or other status
Option 3: Return to foreign entity (if still operating)
If parent company abroad is still operating
Return and work from there
Potentially transfer to U.S. again later
L-1 challenge: L-1 is specifically for intracompany transfers. If company doesn't exist, L-1 is gone. Must switch to different visa type.
Employer-Sponsored Green Card: What Happens When Company Closes
The critical question: Was your I-140 approved for 180+ days?
If I-140 approved for 180+ days:
AC21 portability applies:
You can change employers
Green card process continues with new employer
Keep your priority date
New job must be in "same or similar" occupation
What you need to do:
Find new job in same/similar field
New employer doesn't need to file new I-140
Inform USCIS of job change (when I-485 is pending)
Green card process continues
If I-140 approved for less than 180 days:
More complex:
Original employer can withdraw I-140
If withdrawn, you lose priority date
New employer would need to file new I-140
Strategy: If company is failing and your I-140 is approaching 180 days, try to keep company operating until that threshold.
If I-140 not yet approved:
Most vulnerable:
If company closes before I-140 approval, case is typically abandoned
You lose everything filed so far
New employer would need to start from scratch
EB-1A and NIW: Unaffected by Company Closure
Why self-petitioned green cards are safest:
EB-1A (Extraordinary Ability):
You petitioned for yourself
No employer involved
Company closure doesn't affect your petition
Process continues regardless
EB-2 NIW (National Interest Waiver):
Self-petition
No employer dependency
Company closure doesn't affect your petition
This is why self-petitioned green cards provide insurance:
You're not dependent on employer
Job loss doesn't affect green card
Can change jobs, start companies, or be unemployed
Warning Signs Your Company Is Failing
Financial indicators:
Missed payroll
Layoffs accelerating
Runway running out (less than 3 months cash)
Failed fundraising attempts
Key executives leaving
Operational indicators:
Hiring freeze
Benefits being cut
Office downsizing
Major customers leaving
What to do when you see signs:
Start job searching immediately
Update your visa evidence (in case you need to file O-1)
Consult immigration attorney
Understand your I-140 status (if in green card process)
Timeline: Company Closure Scenario
Month -3 (Company showing trouble):
Start job searching
Update resume
Consult immigration attorney
Check I-140 status
Month -1 (Closure imminent):
Intensify job search
Explore O-1 agent options
Prepare visa documentation
Consider filing change of status preemptively
Month 0 (Company closes):
Last day of employment
60-day grace period begins
Focus entirely on finding new sponsor
Month 0-2 (Grace period):
Interview aggressively
Accept offer and get new petition filed
If H-1B: Can start working once transfer filed
If no offer: Consider B-1/B-2 change of status
Month 2+ (If no solution):
Leave U.S. before grace period ends
Continue job search from abroad
Return on new visa when sponsored
Special Considerations for Founders
If you're a founder and company is failing:
Option 1: Pivot the company
If company can pivot, you maintain visa basis
Restructure rather than close
Option 2: Acquihire
Larger company acquires your company (and you)
New company sponsors your visa
Smooth transition
Option 3: Join new company
Close failed company
Join new employer on H-1B or O-1 transfer
Use grace period to find new sponsor
Option 4: Start new company
If you have O-1, new company can petition for you
Complex but possible
Consult attorney on structure
How to Protect Yourself Before Company Fails
1. Pursue self-petitioned green card:
File EB-1A or NIW while still employed
Even if company fails, your green card process continues
2. Build O-1 evidence:
Keep publications, press, awards documented
If you need to file O-1 quickly, evidence is ready
3. Network continuously:
Maintain relationships with potential employers
Have backup job options identified
4. Know your I-140 status:
Check if I-140 is approved
Know when 180-day threshold occurs
Understand AC21 portability options
5. Save documentation:
Keep copies of all visa documents
Save I-797s, I-94s, pay stubs
Have everything ready for new applications
How OpenSphere Helps When Company Is Failing
Status Assessment
Input your current visa and green card status. OpenSphere shows your options if company closes.
Grace Period Countdown
If employment ended, OpenSphere tracks your 60-day grace period and deadlines.
AC21 Portability Check
If in green card process, OpenSphere evaluates whether AC21 protects you.
Backup Strategy
OpenSphere recommends actions to take while company is still operating: File EB-1A/NIW. Build O-1 evidence. Network for backup employers.
Comparison Table: Visa Impact When Company Closes
Visa Type | Effect of Company Closure | Grace Period | Best Option |
H-1B | Status ends | 60 days | H-1B transfer to new employer |
O-1 | Petitioner gone | 60 days | O-1 transfer or agent petition |
L-1 | Status ends (no related entity) | 60 days | Switch to H-1B or O-1 |
EB green card (I-140 180+ days) | AC21 portability applies | N/A | Find same/similar job |
EB green card (I-140 < 180 days) | May lose priority date | N/A | Try to keep company open until 180 days |
EB-1A / NIW | Unaffected | N/A | Process continues |
Worried about your company's stability and how it affects your visa? Want to understand your options before problems arise?
Take the OpenSphere evaluation. You'll get risk assessment and backup planning recommendations.
1. How do I know if my I-140 has been approved for 180+ days?
Check your I-140 approval date on the I-797 notice. Count 180 days from that date.
2. Can my employer withdraw my I-140 after 180 days?
Employer can withdraw, but after 180 days, your priority date is protected for future use.
3. What if I'm laid off, not company closure?
Same rules apply. 60-day grace period, find new sponsor, or change status.
4. Can I file my own H-1B if my company closes?
No. H-1B requires employer-employee relationship. You can't sponsor yourself.
5. What happens to my H-4 spouse if I lose H-1B?
H-4 status depends on your H-1B. If your H-1B ends, H-4 also ends (same grace period).
6. Can I use the 60-day grace period multiple times?
Yes, each new employment period can have its own grace period. But there are limits on total usage.
7. What if company closes while my I-140 is pending?
Case is typically abandoned. You'd need new employer to start over.
8. Can I work for my own new company on O-1?
Complex. Your company can petition for you, but you need proper corporate structure. Consult attorney.
9. What if I'm on OPT and company closes?
OPT allows 90 days of unemployment (cumulative). Find new employer within that window.
10. Should I tell my employer I'm job searching because I'm worried about company stability?
Risky. May accelerate your termination. Job search discreetly if company is still operating.
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