What is the basic requirement for a startup company to prove ‘ability to pay’ while applying for H1B visa?

Before we even consider proving that a startup can pay, it’s important that the startup fall under the definition of a “United States Employer.”

Person, firm, corporation, contractor, or other association, or organization in the United States which:

– Engages a person to work within the United States.

– [Will have] an employer-employee relationship [with the H-1B employee] as indicated by the fact that it may hire, pay, fire, supervise, or otherwise control the work of any such employee; and

– Has an IRS tax identification number.

So, first and foremost, make sure that the startup meets those qualifications from the USCIS.

Yes, the startup would need to prove that it has the financial ability to pay salary during the period of the position. Startups may also use a realistic promise that they’ll be able to access resources in the future that makes them able to do so. Some things that a startup may use include:

– Supporting statements and documentation that shows the liquid resources and cash flow of the startup

– Supporting statements and documentation that shows the cash flow and income that it anticipates it will have during the period listed in the petition

Some of the supporting documentation may include:

– Financial statements

– Bank statements

– Deeds for real property

– Payroll records that show the startup’s current ability to pay

– Tax returns

– Documentation or terms sheets of angel investing or VC

– Projected financial statements

– Copies of contracts that show where the business will grow because of the future use of the startup’s goods or services

Whether you’re the owner or co-owner of the startup or an immigrant looking to work for the startup, it wouldn’t hurt to talk with an experienced immigration attorney. LawTrades is a legal marketplace and we provide a service called Micro that will enable you to ask an experienced immigration attorney about your specific situation for a low flat-rate (usually around $25). You get an answer within 48 hours.