Immigration for Business: Form I-9, E-Verify, Work Visas and Owners on Visas
In Short
Immigration for Business covers the federal rules employers follow to verify that every hire may work in the U.S. and the visa categories used to employ foreign workers or let foreign owners run a company. It applies to every U.S. employer, and visa options matter most to growing companies and foreign investors.
TL;DR
- Every U.S. employer completes Form I-9 for each new hire, citizens included, and keeps it for three years after hire or one year after employment ends, whichever is later [1].
- Knowingly hiring or continuing to employ an unauthorized worker is unlawful and can bring civil penalties, and a pattern or practice can bring criminal penalties [2].
- H-1B has an annual cap of 65,000 plus 20,000 for U.S. master's degree holders, and a 2025 proclamation added a $100,000 payment for certain new petitions that a federal court has since blocked [3][4].
- Owning a U.S. company does not by itself allow a foreign national to work in it; categories such as E-2, L-1A, O-1A and H-1B each have their own tests [5].
- EB-5 requires an investment of $1,050,000, or $800,000 in a targeted employment area or infrastructure project, and 10 full-time jobs [8].
Quick Facts
| Legal Reference | Immigration and Nationality Act §274A (8 U.S.C. §1324a); INA §101(a)(15) |
|---|---|
| Complexity | High |
| Setup Cost | Low for I-9 compliance; government fees plus attorney fees, often thousands of dollars per visa petition |
| Time to Implement | Form I-9 within days of hire; visa petitions take months and some are tied to annual cap seasons |
| Illustrative Example | Illustrative example, not a projection. A foreign entrepreneur from a treaty country invests $250,000 in a Texas restaurant she owns and manages and applies for E-2 status. If approved, she can direct the business for an initial period of up to two years, with extensions. If the business earns only enough to support her family, it may be viewed as marginal, which can affect eligibility. Outcomes depend on the facts and on government decisions. |
Key Numbers & Limits
| Item | Limit or Rule | Notes |
|---|---|---|
| Form I-9 Section 2 Deadline | Within 3 business days after the first day of work | Kept 3 years after hire or 1 year after employment ends, whichever is later [1]. |
| H-1B (Specialty Occupation) | Cap of 65,000 per year plus 20,000 for U.S. master's degree or higher | Up to 3 years initially, 6 years total in most cases; requires a certified Labor Condition Application [3]. |
| H-1B $100,000 Payment | Required for certain new petitions filed on or after September 21, 2025 | Agency guidance vacated by a federal court on June 8, 2026; DHS said it will comply while it considers next steps [4]. |
| L-1A (Intracompany Manager or Executive) | 1 continuous year with a related company abroad in the past 3 years | 1 year initially for a new U.S. office [5]. |
| O-1A (Extraordinary Ability) | U.S. employer or agent files; up to 3 years initially | [5] |
| TN (USMCA Professional) | Canadian and Mexican citizens in listed professions; up to 3 years | Requires a prearranged job with a U.S. employer [6]. |
| E-2 (Treaty Investor) | Substantial investment and at least 50% ownership or operational control; up to 2 years initially | Only nationals of treaty countries [5]. |
| H-2B (Seasonal Nonagricultural) | 66,000 per fiscal year (33,000 per half) | Requires a DOL temporary labor certification and a temporary need [7]. |
| EB-5 (Investor Green Card) | $1,050,000 standard; $800,000 in a targeted employment area or infrastructure project | Plus 10 full-time jobs for qualifying U.S. workers [8]. |
What Is Immigration for Business and Which Visas Do Employers Use?
Immigration for business is the set of federal rules that apply when a company hires workers and when foreign nationals work in or own U.S. businesses. The baseline duty applies to every employer: complete Form I-9 for every person hired, including U.S. citizens, examine identity and work authorization documents, and keep the form for three years after hire or one year after employment ends, whichever is later [1]. It is unlawful to knowingly hire, or continue to employ, a worker who is not authorized to work in the United States [2]. E-Verify is an online system that compares Form I-9 information with government records; employers enrolled in it may use a DHS-authorized remote document examination procedure [1].
Employers sponsor foreign workers through visa categories with different purposes. H-1B covers specialty occupations that require at least a bachelor's degree in a related field, with an annual cap of 65,000 plus 20,000 for holders of U.S. master's degrees [3]. A September 19, 2025 proclamation required a $100,000 payment for certain new H-1B petitions filed on or after September 21, 2025; on June 8, 2026, a federal district court vacated the agency guidance implementing it, an appeals court denied a stay on July 24, 2026, and DHS said it will comply while it considers next steps [4]. DHS also replaced the random H-1B lottery with a weighted selection favoring higher wage levels, starting with the fiscal year 2027 registration season. H-2B covers temporary nonagricultural jobs, such as seasonal or peak-load work, and is capped at 66,000 per fiscal year [7].
Other categories fit specific situations. L-1A lets a multinational company transfer a manager or executive who has worked for a related company abroad for one continuous year in the past three years, including to open a new U.S. office [5]. O-1A covers people with extraordinary ability in business, science, education or athletics [5]. TN covers Canadian and Mexican citizens in professions listed in the U.S.-Mexico-Canada Agreement [6]. E-2 lets nationals of treaty countries who invest a substantial amount of capital in a U.S. business they control develop and direct it [5]. EB-5 is a permanent residence (green card) category for investors who invest $1,050,000, or $800,000 in a targeted employment area or infrastructure project, and create 10 full-time jobs [8].
Owners on visas face a separate question. A foreign national may own a U.S. company, but ownership alone does not give permission to work in it [5]. For H-1B, the owner can hold an interest in the petitioning company, but generally the company must file the petition as the employer [5]. E-2 and L-1A are built for owners and managers, and the International Entrepreneur Rule offers parole for founders with substantial ownership in qualifying start-ups [5].
How Does Immigration Compliance Work for Employers?
- On or before the first day of work, each new employee completes Section 1 of Form I-9; the employer completes Section 2 within three business days, examining the documents in person or through the DHS-authorized remote procedure if enrolled in E-Verify [1].
- The employer keeps Forms I-9 for the required period and makes them available for government inspection [1]. Workers whose temporary work authorization expires are reverified.
- To hire a foreign worker, the employer identifies a category that fits the job and the person — for example H-1B for a degreed specialty role, TN for a Canadian or Mexican professional, or H-2B for seasonal work [3][6][7].
- Many categories require a Department of Labor step first, such as a Labor Condition Application for H-1B or a temporary labor certification for H-2B, followed by a Form I-129 petition to USCIS [3][7].
- Foreign owners and investors compare categories built for owners — E-2, L-1A, O-1A, EB-5 or entrepreneur parole — and structure the company, investment and role to fit [5][8].
The Good: What Are the Benefits of Immigration for Business?
- Form I-9 compliance is a fixed, repeatable process that applies the same way to every hire [1].
- Visa categories give employers access to specialized talent (H-1B, O-1A), seasonal labor (H-2B) and internal transfers from abroad (L-1A) [3][5][7].
- TN status for Canadian and Mexican professionals is granted for up to three years at a time and can be extended [6].
- E-2 status is granted for up to two years initially and can be extended while the enterprise continues to qualify [5].
- EB-5 offers a path to permanent residence for investors who meet the investment and job-creation tests [8].
The Bad: What Are the Drawbacks of Immigration for Business?
- H-1B is capped, now uses weighted selection, and has carried uncertainty over the $100,000 payment requirement since 2025 [3][4].
- Visa petitions involve government fees, attorney fees, Labor Department steps and processing time measured in months [3][7].
- H-2B numbers are capped at 33,000 per half of the fiscal year and limited to temporary needs [7].
- E-2 is limited to nationals of treaty countries, and a marginal business that only supports the owner's family may not qualify [5].
- TN dependents cannot work in the United States [6].
The Ugly: What Are the Serious Risks of Immigration for Business?
- Knowingly hiring or continuing to employ an unauthorized worker can bring cease-and-desist orders and civil penalties for each worker, with higher penalties for repeat violations [2].
- A pattern or practice of knowingly hiring unauthorized workers can bring criminal fines of up to $3,000 per worker and up to six months in prison [2].
- Paperwork violations on Form I-9 bring civil penalties for each form, based on business size, good faith, seriousness and history [2].
- A foreign owner who works in a business without a status that allows it can violate the terms of the visa, which can affect future immigration options [5].
Who Uses Each Business Immigration Option?
Who It's Commonly Used By
- Every U.S. employer, for Form I-9 [1].
- Technology, engineering, health-care and professional service firms hiring degreed specialists through H-1B, TN or O-1A [3][5][6].
- Businesses with seasonal or peak-load needs, such as landscaping and hospitality, through H-2B [7].
- Multinational companies transferring managers or opening a U.S. office, through L-1A [5].
- Foreign investors from treaty countries buying or starting U.S. businesses through E-2, and investors seeking permanent residence through EB-5 [5][8].
Who It's Generally Not Suited For
- H-1B is generally not suited to roles that do not require a related bachelor's degree, or to hiring on a short timeline because of the annual cap season [3].
- H-2B is generally not suited to permanent, year-round positions [7].
- TN is generally not suited to self-employment, since it requires a prearranged job with a U.S. employer [6].
- E-2 is generally not suited to nationals of countries without a qualifying treaty or to small, marginal investments [5].
What Are the Key Rules for Immigration for Business?
- Employers complete Form I-9 for every new hire and keep it for three years after hire or one year after employment ends, whichever is later [1].
- It is unlawful to knowingly hire or continue to employ an unauthorized worker [2].
- H-1B requires a specialty occupation, a certified Labor Condition Application and a wage at least equal to that paid to similarly qualified workers [3].
- L-1A requires one continuous year of work for a qualifying related organization abroad within the three years before admission [5].
- E-2 requires a substantial investment in a real, non-marginal enterprise and at least 50% ownership or operational control [5].
- H-2B requires a temporary need — one-time, seasonal, peak-load or intermittent — and a Labor Department temporary labor certification [7].
- EB-5 requires $1,050,000, or $800,000 in a targeted employment area or infrastructure project, and 10 permanent full-time jobs [8].
What Are Common Mistakes & Red Flags With Immigration for Business?
- Skipping Form I-9 for family members, part-time workers or short-term hires [1].
- Asking employees for specific documents, or extra documents, during I-9 verification, which can be treated as unlawful discrimination.
- Paying a worker as a contractor to avoid verifying work authorization [2].
- Assuming a foreign owner can work in the business because he or she owns it [5].
- Using a seasonal H-2B worker to fill a permanent role [7].
- Relying on social media or unlicensed consultants about the H-1B $100,000 payment instead of the current USCIS notice [4].
What Should Texas Employers Know About Immigration for Business?
- Texas Government Code §673.002 requires state agencies and public institutions of higher education to use E-Verify for new hires; Texas law does not generally require private employers to use it.
- Texas employers follow the same federal Form I-9 rules as employers in other states [1].
- Foreign-owned companies operating in Texas form or register an entity with the Texas Secretary of State and are subject to Texas franchise tax like other entities.
- Texas businesses with seasonal or peak-load needs use the same federal H-2B process, which depends on a Labor Department temporary labor certification [7].
Frequently Asked Questions
Do Employers Have to Complete Form I-9 for U.S. Citizens?
Yes. All U.S. employers complete Form I-9 for every individual they hire for employment in the United States, including citizens [1].
Is the $100,000 H-1B Fee Still in Effect?
As of the USCIS update, a federal district court vacated the agency guidance implementing the $100,000 payment on June 8, 2026, the appeals court denied the government's request for a stay on July 24, 2026, and DHS said it will comply with the order while it considers next steps [4]. The status can change, so the current USCIS notice is the reference point.
Can a Foreign National Own a Business in the United States?
Yes, ownership is generally open to foreign nationals, but owning a business does not by itself authorize working in it [5]. Categories such as E-2, L-1A, O-1A, H-1B and entrepreneur parole each have their own requirements [5].
How Much Is the EB-5 Investment Amount?
For petitions filed on or after March 15, 2022, the minimum is $1,050,000, or $800,000 in a targeted employment area or infrastructure project, and the investment must create 10 full-time jobs for qualifying U.S. workers [8].
What Are the Penalties for Hiring Undocumented Workers?
Employers can face cease-and-desist orders and civil penalties for each unauthorized worker, separate civil penalties for I-9 paperwork violations, and criminal fines and up to six months in prison for a pattern or practice of violations [2]. Because rules and penalties change, employers commonly consult an immigration attorney about specific situations.
Sources
- I-9, Employment Eligibility Verification — U.S. Citizenship and Immigration Services
- 8 U.S. Code §1324a — Unlawful Employment of Aliens — Legal Information Institute, Cornell Law School
- H-1B Specialty Occupations — U.S. Citizenship and Immigration Services
- Presidential Proclamation on Restriction on Entry of Certain Nonimmigrant Workers — U.S. Citizenship and Immigration Services
- Options for Alien Entrepreneurs to Work in the United States — U.S. Citizenship and Immigration Services
- TN USMCA Professionals — U.S. Citizenship and Immigration Services
- H-2B Temporary Non-Agricultural Workers — U.S. Citizenship and Immigration Services
- About the EB-5 Visa Classification — U.S. Citizenship and Immigration Services
Primary sources only: the Internal Revenue Code, Treasury regulations and official agency guidance. Read how Zentavos researches these reports.