Learn how to hire and sponsor employees after green card approval. Complete guide on employer obligations, visa sponsorship, and building your US team legally.
Once you have your green card, hiring employees after green card approval follows the same rules that apply to any US employer. Your permanent resident status doesn't give you special hiring powers or restrictions compared to US citizen business owners. You have the same rights and responsibilities regarding employment. The key is properly establishing your business entity, registering as an employer, and following federal and state employment laws that apply to all employers.
Many green card holders who started companies while on work visas like H-1B or L-1 find that hiring becomes simpler after receiving permanent residence. You no longer need to worry about your own visa status affecting business decisions. You can freely move between roles or pivot your business without immigration complications. This stability helps in recruiting employees who may have been hesitant to join a company where the founder's visa situation was uncertain.
Your business structure matters for hiring purposes. Sole proprietorships can hire employees but create personal liability issues. LLCs and corporations provide liability protection and appear more professional to potential employees. Most green card holders who plan to build teams choose to incorporate as C-corporations or LLCs. These structures also make visa sponsorship clearer if you later want to hire foreign workers who need sponsorship.
Ready to start hiring your first employees? Beyond Border guides you through proper employer setup and compliance.
Before hiring your first employee, you need to establish yourself as a legitimate employer with appropriate registrations and accounts. Start by ensuring your business has an Employer Identification Number (EIN) from the IRS. The EIN functions like a social security number for your business. Even if you already have an EIN from when you formed your company, verify it's still active. Apply for EIN online at the IRS website - the process takes about 15 minutes for most applicants.
Register with your state's employment security department or workforce agency. Each state has different names for these agencies but all states require employers to register before hiring. This registration allows you to pay unemployment insurance taxes and comply with state employment laws. Some states also require registration with separate departments for disability insurance or workers compensation. Research your specific state's requirements early in the hiring process.
Set up payroll systems before your first employee starts. You can handle payroll manually for very small teams but most employers use payroll services like Gusto, ADP, or Paychex. These services calculate tax withholdings, file payroll tax returns, and generate pay stubs automatically. They cost $40-150 monthly for small teams but save enormous time and reduce compliance risks. Proper payroll setup from day one prevents tax problems that can become serious legal issues later.
Need help setting up employer infrastructure? Beyond Border connects you with payroll and HR service providers who understand small business needs.
Every employer must verify every employee's identity and work authorization through Form I-9, regardless of the employee's citizenship or immigration status. This is one of the most important employer responsibilities after green card that many new employers overlook or handle incorrectly. I-9 forms must be completed within 3 business days of an employee's start date. Failing to complete I-9s or completing them incorrectly creates significant liability including fines and potential criminal charges for repeat violations.
The I-9 process requires employees to present documents proving identity and work authorization. US citizens typically present driver's licenses and social security cards, or passports. Green card holders present their permanent resident cards. Work visa holders present their visa documents and employment authorization documents. As employer, you must physically examine original documents - not copies - and verify they appear genuine and relate to the person presenting them. Keep completed I-9 forms in secure files separate from regular personnel files.
You cannot discriminate in the I-9 process based on citizenship status or national origin. This means you can't refuse to hire someone just because they need to present a green card instead of being a US citizen. You also can't demand specific documents - employees can choose which acceptable documents to present from USCIS lists. Many new employers make mistakes in this area, so educate yourself thoroughly on proper I-9 procedures before hiring anyone.
Concerned about I-9 compliance for your hiring? Beyond Border provides I-9 training and compliance resources for employers.
One common question is can green card holders sponsor H-1B or other work visas for employees they want to hire. The answer is yes - green card holders can sponsor foreign workers through their companies just like US citizens can. Your immigration status doesn't prevent you from being an employer who sponsors work visas. However, the company must meet certain requirements to successfully sponsor workers for H-1B, L-1, O-1, or green cards.
The primary requirement is that your company must be a legitimate operating business with the financial capacity to pay the sponsored worker's salary. For H-1B sponsorship, you need to file Labor Condition Applications certifying you'll pay the required prevailing wage for the position and location. Your company must have the revenue or funding to credibly afford this salary. USCIS reviews company financial documents, tax returns, and bank statements during visa petition processing. Startups with adequate venture funding can sponsor workers successfully.
The sponsored position must be a genuine job that your business actually needs. You can't sponsor someone just to help them get a visa - the position must exist because your business operations require it. Document the business need through job descriptions, organizational charts, and explanations of how this role fits into your company structure. For green card sponsorship, the process is more complex and expensive than work visa sponsorship, typically requiring PERM labor certification proving no qualified US workers are available for the position.
Planning to sponsor foreign workers for your company? Beyond Border handles the complete visa sponsorship process from LCA through petition filing.
Sponsoring employees as green card holder means complying with all federal and state employment laws. Fair Labor Standards Act (FLSA) establishes minimum wage, overtime, and recordkeeping requirements. Most employees must be paid at least federal minimum wage ($7.25/hour) or your state's minimum wage if higher. Non-exempt employees must receive overtime pay (1.5x regular rate) for hours over 40 per week. Classify workers correctly as exempt or non-exempt based on actual job duties, not just job titles.
Anti-discrimination laws prohibit making employment decisions based on protected characteristics. You cannot discriminate based on race, color, religion, sex, national origin, age (40+), disability, or genetic information. Immigration status is also protected - you can't refuse to hire someone solely because they have a green card instead of citizenship. These laws apply to hiring, firing, compensation, promotions, and all employment terms. Even unintentional discrimination can create liability if your hiring patterns or practices disparately impact protected groups.
State employment laws add additional requirements beyond federal minimums. Many states require meal breaks, rest breaks, paid sick leave, or family leave. California, New York, and other states have particularly extensive employment law requirements. Research your specific state's laws or consult with employment attorneys before hiring. Violating state employment laws can result in employee lawsuits, government investigations, and significant financial penalties that can threaten your business survival.
Overwhelmed by employment law compliance? Beyond Border connects you with employment law attorneys who provide practical guidance for startups.
Successfully building team after permanent residence requires thinking strategically about when to hire employees versus using contractors, which roles to fill first, and how to create effective recruiting processes. Many green card holders who receive permanent residence while running small businesses immediately want to scale hiring. However, hiring employees creates significant fixed costs and legal obligations. Make sure your business revenue or funding can sustain a team before committing to payroll.
Start with the most critical roles that directly impact revenue or product development. For tech startups, this often means engineering and product roles. For service businesses, it might mean sales or client delivery roles. Avoid hiring administrative or support roles too early - founders should handle these responsibilities initially. Each hire should clearly contribute to business growth in measurable ways. Create specific success metrics for roles before recruiting so you can evaluate whether hires are working out.
Consider contractors for temporary projects or specialized skills you need occasionally. Independent contractors don't receive benefits, you don't withhold taxes, and you have more flexibility to end relationships. However, misclassifying employees as contractors creates serious legal problems. The IRS and states have specific tests for determining worker classification. If you control how, when, and where someone works, they're likely an employee regardless of what your contract says. Use contractors appropriately but don't try to avoid employment laws through misclassification.
Need strategic hiring advice for your growing business? Beyond Border provides business consulting covering team building and organizational development.
Can green card holders hire US citizens and permanent residents? Yes, green card holders can hire any workers authorized to work in the United States including citizens, permanent residents, and work visa holders without restrictions.
Do I need special permits to hire employees as green card holder? No special permits required beyond standard employer registrations - EIN from IRS, state unemployment insurance registration, and workers compensation insurance in most states.
Can I sponsor my employees for green cards? Yes, if your company meets financial requirements and can prove business need, you can sponsor employees for work visas and green cards through PERM labor certification.
What are my tax obligations when hiring employees? You must withhold federal income tax, Social Security, Medicare, pay unemployment insurance taxes, and comply with state withholding requirements for all employees.
