Thinking of Sponsoring a Foreign Worker? What You Need to Know First

Sponsoring an employee for a visa like the H-1B or employment-based green card isn’t just a matter of filling out paperwork. It comes with financial, legal, and operational commitments. And for smaller businesses, the stakes can be higher if something goes wrong: whether it’s a missed deadline, a rejected petition, or a misunderstanding of your obligations as an employer.

Let’s walk through the key facts you need to know before sponsoring a foreign worker.

What Sponsoring A Foreign Worker Actually Means for Your Business

When you sponsor a foreign worker, you’re taking legal responsibility for part of their immigration process. That usually means:

• Proving that the job qualifies as a “specialty occupation” (for H-1B visas).
• Paying all required government filing fees.
• Attesting that you’ll pay a fair wage and follow all relevant labor laws.
• Keeping good records and complying with Department of Labor and USCIS rules.

The H-1B visa is one of the most common ways to sponsor a foreign worker, but it’s very limited. Only 85,000 new visas are available each year (65,000 regular and 20,000 for people with a U.S. master’s or higher). Because so many people apply, spots are given out in a lottery. In the most recent cycle, over 470,000 applications were filed, so chances of being picked were less than 20%.

Applying for an H-1B involves several steps, like filing a Labor Condition Application. The process takes at least two months and follows the lottery schedule. Even if you find someone in January, the earliest they could start on an H-1B is October 1—and only if they’re selected.

Employers also have ongoing duties. If the worker is laid off or changes jobs, you may need to notify USCIS or withdraw your petition to avoid problems.

Budgeting for Costs and Delays

Sponsoring a foreign worker for a visa like the H-1B involves significant upfront and ongoing costs beyond just salary, as updated in July 2025. For an H-1B visa:

• A small business (under 25 employees) should budget $2,500 in mandatory government fees, while larger employers will pay $3,380.
• These figures do not include legal fees, which typically range from $2,500 to $5,000 for a standard case.
• An optional $2,805 premium processing fee guarantees a response within 15 days.

Additionally:

• Compliance costs for tracking filings and maintaining records should be factored in.
• Generally, the employer is responsible for filing fees, fraud prevention fees, and premium processing fees.
• The employee may pay for fees related to their dependents' H-4 applications.
• Legal fees are usually covered by the employer but can vary based on the agreement between the employer and employee.

For many small businesses, this represents a substantial investment, making it crucial to evaluate if the role and candidate justify the associated cost and time.

Questions SMBs Should Be Asking Before Starting the Sponsorship Process

Before you move forward, ask yourself and your legal advisor a few critical questions:

• Does this position qualify for an H-1B or other employment visa? Is the job a "specialty occupation"?
• Can we afford the legal and filing fees involved? Are we prepared to budget for both the upfront and possible ongoing costs?
• What are our legal duties to sponsored employees? What happens if we lay them off, or if the visa isn’t approved?
• Should we talk to a legal professional first? What risks or timeline issues should we be aware of before committing?

What to Do Next

If you’re considering sponsorship, take these next steps:

1. Clarify the job requirements and whether the role qualifies for a visa like the H-1B.
2. Get clear on the cost structure for your situation, including legal fees, government charges, and potential delays.
3. Ask a Legal Pro to understand your legal responsibilities and options.

With the right preparation, sponsoring a foreign worker can open new doors for your business—just make sure you’re clear on the process and time it takes, before you commit.