Sponsoring your first H-1B employee means your company becomes the petitioner and takes on the legal obligations, not the worker. Before filing, you obtain a certified Labor Condition Application (LCA) from the Department of Labor, which commits you to pay the higher of your actual wage or the prevailing wage, post a notice of the filing for 10 days, and keep a public access file. You then file Form I-129 with USCIS and pay the fees: for a company with 25 or fewer U.S. employees, the core government fees come to $2,010 per petition, plus $2,965 if you choose premium processing. Your path depends on the candidate. Someone already in H-1B status can join through a cap-exempt transfer at any time of year. An F-1 graduate on OPT must first be selected in the spring registration, with October 1 as the earliest start. A candidate abroad adds consular processing and, for now, the $100,000 proclamation question.
Key takeaways
The company is the petitioner and pays the petition costs, including the attorney fees for the LCA and the petition. You owe the required wage from the start date, even when there is no work to assign. An employee already in H-1B status can usually start once a transfer petition is received; a new graduate needs a cap selection first. Registration cost $215 per beneficiary in the FY 2027 season, and selection is now weighted by the offered wage level. If you end the job early, you must notify USCIS and offer reasonable return transportation.
What sponsorship commits your company to
An H-1B is tied to one employer and one job. The obligations come from two places: the attestations you sign on the LCA, set out in the Department of Labor rules at 20 CFR 655.731 and the sections after it, and the USCIS rules in 8 CFR 214.2(h). In plain terms, a sponsor agrees to the following:
- Pay the required wage. That is the greater of the actual wage you pay others with similar experience in the same job, or the prevailing wage for the occupation in the area of employment. Only cash wages count, paid at least monthly through payroll.
- Offer the same benefits (health insurance, retirement plans, bonuses, stock options) on the same basis as to U.S. workers.
- Post notice of the LCA in at least two conspicuous places at each worksite, or electronically, for a total of 10 days, starting no more than 30 days before the LCA is filed.
- Keep a public access file available within one working day after filing: the certified LCA, the wage paid, an explanation of your actual wage system, the prevailing wage source, the notice, and a summary of benefits. Records are kept for one year after the last H-1B worker under that LCA leaves.
- Pay the costs. Petition fees and attorney fees for the LCA and petition are the employer’s business expense. You cannot deduct them from pay, and the worker may never pay the ACWIA training fee.
- No benching. If the worker is idle because of a business decision, such as no assigned project, you still owe the full salary. The exception is time off at the worker’s own request or when the worker is unable to work.
- End it properly. If you dismiss the worker before the end of the approved period, you are liable for the reasonable cost of return transportation abroad, and you must notify USCIS so the petition is withdrawn. Until both happen, the Department of Labor may treat the wage obligation as continuing.
- Report changes. A material change in the job, such as a move to a worksite outside the LCA’s area, generally needs a new LCA and an amended petition before the change takes effect.
The three hiring situations
Identify your candidate’s situation before making the offer, because it decides the calendar.
| Candidate today | Cap selection needed? | Earliest start | What drives the timing |
|---|---|---|---|
| Already in H-1B status with another U.S. employer | No, if previously counted against the cap | When the petition is received (portability) | LCA certification, then filing; any month of the year |
| F-1 student or graduate on OPT or STEM OPT | Yes | October 1 after selection | Spring registration, then a filing window of at least 90 days from April |
| Living outside the United States | Yes, unless previously counted | After approval and a visa interview | Selection (if needed), petition approval, consular appointment, the proclamation |
Candidate already on an H-1B: a transfer
This is the fastest and most common first case. A worker counted against the cap in the past six years is not counted again, so your company files a change-of-employer petition whenever it is ready, and the worker can start once USCIS receives it. Our H-1B transfer service handles these from offer letter to approval. One check matters: a worker coming from a university or other cap-exempt employer who was never counted against the cap needs a selection like any new hire.
F-1 graduate on OPT or STEM OPT: the registration
A new graduate has never been counted, so your company must register the candidate in the electronic registration and be selected before it can file. USCIS’s registration page set the FY 2027 window at March 4 to 19 and the fee at $215 per beneficiary; the FY 2028 dates and fee will be announced before the window opens. Under the regulation now in force, selection is weighted: a Level IV wage enters the pool four times and a Level I wage once, so the wage level you offer changes the odds. Our cap registration guide covers the mechanics. If you file a change-of-status petition on time, the cap-gap rule extends the student’s status and OPT work authorization until April 1 of the fiscal year requested, or the petition’s start date if earlier, which bridges the gap to October 1. A candidate on the 24-month STEM OPT extension can only work for an employer enrolled in E-Verify that signs a Form I-983 training plan.
Candidate abroad
After approval, the worker applies for a visa at a U.S. consulate before entering. This is also where the September 2025 proclamation matters: it restricts entry of new H-1B workers from abroad unless the petition carries a $100,000 payment. USCIS reports that a federal court vacated its implementing guidance in June 2026 and the government appealed, and Proclamation 11069 extended the restriction until September 21, 2027. The status can change; confirm the current position before you file for anyone outside the United States.
Company readiness checklist
USCIS defines a U.S. employer as one with a bona fide job offer for work in the United States (remote work included), a legal presence here, and an IRS tax identification number. Before the first filing, have these ready:
- A Federal Employer Identification Number and a registered U.S. entity in good standing.
- A running payroll that withholds taxes, because the required wage must be paid as reported earnings.
- A written job description with real duties, a title, a supervisor, and a worksite, matched to the correct occupational code and wage level.
- A degree match. The job must normally require a bachelor’s degree or higher in a specific field, and the candidate’s degree (or equivalent experience) must fit it.
- Proof the business is real: a lease or coworking agreement, financial statements or a funding round, and an organizational chart showing where the role sits.
- E-Verify enrollment only if needed. The H-1B does not require it, but hiring or keeping a worker on STEM OPT does.
Founder-owned companies
A founder can be the beneficiary of the company’s own petition. If the beneficiary owns more than 50 percent of the company or holds majority voting rights, the initial approval and the first extension are each limited to 18 months, and the founder must spend the majority of the time on specialty occupation duties, with time on running the business allowed on top of that. Founders weighing this route should also read our guide to the O-1 for startup founders, which has no cap.
Remote employees
The LCA must cover the place where the person actually works. For a fully remote engineer, that is usually the employee’s home area, not your headquarters, and the prevailing wage is set there. The notice must be given at that worksite too, typically by email or an intranet posting. If the employee later moves to a different metropolitan area, plan the new LCA and amended petition before the move.
Equity does not count toward the required wage
Many early-stage companies pay engineers a modest salary plus stock options. For an H-1B, only cash wages paid through payroll count toward the required wage; stock options are a benefit, offered on the same basis as to U.S. staff. A future bonus counts only if its payment is assured, not tied to profits or a funding event. Set the base salary at or above the required wage from the first paycheck.
What the first petition costs a small employer
Government fees below come from the USCIS fee schedule (G-1055), edition dated October 16, 2026. For a company with 25 or fewer U.S. employees, the four core fees add up to $2,010.
| Fee | Small employer | Standard | Notes |
|---|---|---|---|
| Registration (cap cases only) | $215 | $215 | FY 2027 amount, per beneficiary, non-refundable |
| Form I-129, H-1B | $460 | $780 paper / $730 online | Also $460 for nonprofits |
| Asylum Program Fee | $300 | $600 | $0 for nonprofits |
| Fraud Prevention and Detection Fee | $500 | $500 | Initial petitions and changes of employer |
| ACWIA training fee | $750 (25 or fewer U.S. employees) | $1,500 | Employer only; some universities and nonprofits exempt |
| Public Law 114-113 fee | Rarely applies | $4,000 | Only 50+ U.S. employees with more than half in H-1B or L-1 status |
| Premium processing (Form I-907) | $2,965 | $2,965 | Optional; action within 15 business days |
Two pending items can change these numbers. In August 2026, DHS proposed a $103,265 fee for every cap-subject petition; it is a proposal, not a rule, and it would not apply to transfers of workers already counted. The Department of Labor has also proposed raising the prevailing wage levels used on LCAs. Neither applies today; we check both before every filing.
Planning your company’s first H-1B?
Request a free consultation. We identify which of the three paths your candidate is on, check the wage level and job description, and quote a flat fee for the case in writing before any work starts.
How long it takes
The Department of Labor decides an LCA within 7 working days, and an LCA can be filed up to six months before the start date. A transfer for a worker already in H-1B status typically runs two to three weeks from offer to filing, then 15 business days to a USCIS action with premium processing. A cap case follows the government calendar:
| When | Step |
|---|---|
| January to February | Job description, occupational code, wage level, and registration account set up |
| March | Registration window (FY 2027 ran March 4 to 19) |
| After the window | Selection notices posted in the registration account |
| From April 1 | LCA and petition filed within the filing window of at least 90 days; cap-gap protects the OPT worker |
| October 1 | Earliest H-1B start date |
Other visas a startup should compare
The H-1B is not the only way to hire, and for a candidate who is not selected it may not be available at all. Four alternatives have no lottery:
| Visa | Who it fits | Main limit |
|---|---|---|
| TN | Canadian and Mexican citizens in a profession listed under USMCA, such as engineer or computer systems analyst | Citizenship and the listed professions only |
| O-1 | People with extraordinary ability shown by awards, press, high pay, or critical roles; often founders | A demanding evidence standard |
| L-1 | Employees transferred from a related company abroad | One continuous year of work abroad within the last three years |
| E-2 | Investors from treaty countries, and employees of the same nationality as the company | Treaty nationality and a substantial investment |
We often run two options in parallel for a key hire: an H-1B registration plus an O-1 or TN as a backup. Our work visa practice covers all of them.
How to start with one case and choose a firm
You do not need a retainer or a company-wide agreement to sponsor one person. Most first-time sponsors, and many mid-size companies unhappy with hourly billing, start by giving a new firm a single petition on a flat fee. That one case shows you how the firm communicates and whether the filing goes out on time. If you are billed hourly today, ask for a per-case quote that names what is included, so you can compare it with your recent invoices. Questions worth asking for a cap-subject petition:
- Who chooses the occupational code and wage level for the registration, and how do you document it so the petition matches?
- Is the fee flat, what milestones trigger billing, and is a Request for Evidence response included?
- Who prepares the case day to day, how fast do they respond, and which attorney signs off?
- How will we see case status and deadlines without sending an email to ask?
- What happens to our fee if the candidate is not selected?
Our guide to choosing a corporate immigration firm covers the wider comparison once you sponsor regularly.
How Atlas Immigration Law helps
We work with startups and first-time employers on their first sponsorship: sorting the candidate into the right path, setting the wage level and job description, preparing the LCA and public access file, and filing the petition, with a backup visa planned when the cap is involved. Every case runs on a flat fee agreed in writing and billed at milestones, with a dedicated paralegal reachable by call, email, or text, same-business-day responses, and attorney Jordan Weinberg reviewing every filing. Employers follow each case in the Atlas Vision client portal. Atlas is based in Dallas and represents employers in all 50 states; see our H-1B services and employer sponsorship practice, or request a free consultation.
Frequently asked questions
What does it mean for my company to sponsor an H-1B?
Your company files the petition as the employer and signs a Labor Condition Application promising to pay the higher of the actual or prevailing wage, offer equal benefits, post a notice, and keep a public access file. You also pay the petition costs, keep paying during idle periods, and cover return transportation if you dismiss the worker early.
Can a startup sponsor an H-1B?
Yes. A startup qualifies if it has a bona fide job offer, a legal presence in the United States, and an IRS tax identification number. It needs a running payroll, a real specialty-occupation job, and the ability to pay the required wage for the full petition period. Funding documents and an organizational chart help show the role is genuine.
How much does it cost a small company to sponsor an H-1B?
For a company with 25 or fewer U.S. employees, the core government fees are $460 for the I-129, $300 Asylum Program Fee, $500 fraud fee, and $750 ACWIA fee, or $2,010 total. Add $215 for registration in cap cases and $2,965 for optional premium processing. Attorney fees are separate and paid by the employer.
Do we need E-Verify to sponsor an H-1B?
No. E-Verify is not an H-1B requirement. It becomes required if you want to employ a student on the 24-month STEM OPT extension, which many startups do while waiting for a cap selection. In that case you also sign a Form I-983 training plan.
Can the employee pay the H-1B fees or attorney fees?
No. Department of Labor rules treat the petition fees and the attorney fees for the LCA and petition as the employer’s business expense, and the ACWIA training fee can never be paid by the worker. Only the premium processing fee may be paid by either party.
Can I hire someone who already has an H-1B without the lottery?
Usually yes. A worker counted against the cap in the past six years is not counted again, so your company can file a change-of-employer petition at any time of year, and the worker may start once USCIS receives it. A worker who only ever held cap-exempt H-1B status needs a selection.
Can we try an immigration firm with one case first?
Yes. You can engage a firm for a single petition without a retainer or long-term agreement. A flat-fee quote that lists what is included lets you compare it with hourly billing, and one case shows you the firm’s responsiveness, document requests, and filing discipline before you move more work.
This guide is part of our work visa services for employers — the service page covers eligibility, fees, and how we handle these cases.
Founder & Managing Attorney, Atlas Immigration Law
Member of the American Immigration Lawyers Association (AILA) and the Dallas Bar Association. Licensed to practice in Texas; fluent in English and Spanish.
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This guide is general information, not legal advice, and reading it does not create an attorney-client relationship. Immigration law and procedures change, and how they apply depends on your specific facts — consult a licensed immigration attorney about your situation.