Learn how to set up a US subsidiary for O-1 visa sponsorship. Complete guide covering entity formation, corporate structure, and compliance for foreign startups.
Most foreign founders don't realize USCIS requires a US-based petitioner for O-1 visas. Your foreign company in London, Mumbai, or Singapore can't directly file your petition. You need a US subsidiary for O-1 visa sponsorship that acts as the petitioning entity. This US company files Form I-129 on your behalf, enters into an employment agreement with you, and takes responsibility for your visa status.
The US entity doesn't need to be huge or profitable immediately. It can be a newly formed subsidiary with minimal operations. But it must be a real legal entity with proper registration and governance. Immigration officers verify the petitioning company exists, has authority to employ you, and can financially support your salary or contractor payments. Shortcuts or informal arrangements don't work.
Think of the US subsidiary as your immigration vehicle and business foundation. Yes, it serves your visa needs. But it also becomes your platform for raising US capital, hiring American employees, signing contracts with US customers, and building market presence. The entity you create for immigration purposes will support your entire American business journey going forward.
Ready to establish your US subsidiary correctly? Beyond Border guides foreign founders through entity formation that satisfies both business and immigration requirements.
The foreign startup US entity question comes down to two main options - C-corporation or LLC. Most foreign founders choose Delaware C-corps for O-1 sponsorship. C-corps provide clear corporate structure USCIS recognizes easily. They're standard for venture capital investment. They offer liability protection and professional credibility. Delaware specifically provides favorable corporate law and efficient processing.
LLCs can also sponsor O-1 visas successfully. They offer tax flexibility through pass-through taxation. They require less formal governance than corporations. They work well for smaller operations or consulting businesses. However, LLCs can seem less substantial to immigration officers if not properly structured. Make sure your LLC has detailed operating agreements and clear management structure documented.
Whatever structure you choose for O-1 visa company setup, register it properly with your chosen state. File articles of incorporation or organization. Appoint directors or managers. Issue stock or membership interests. Get your federal EIN from the IRS. Open a business bank account. These basic steps prove your entity is real and operational rather than just paperwork.
Your subsidiary formation for visa purposes creates a legal relationship between your foreign parent company and new US entity. Typically, your foreign company owns 100 percent of the US subsidiary initially. This parent-subsidiary structure is clean and clear for immigration purposes. Document the ownership through stock certificates, shareholder agreements, or LLC membership documents showing the foreign entity as owner.
The relationship matters because it explains why a newly formed US company is sponsoring your O-1 visa. You're not a random applicant - you're a key executive or founder being transferred to establish US operations for your existing business. This narrative makes sense to immigration officers. They understand multinational companies sending leaders to open new markets. Your corporate structure tells this story clearly.
As your US business grows and raises capital, ownership structure might change. US venture capitalists will want equity in the US entity. That's fine. Your foreign parent's ownership can dilute over time as long as some connection remains. Just document all ownership changes with proper corporate resolutions, stock issuance records, and updated cap tables for future visa extensions.
Need help structuring the parent-subsidiary relationship correctly? Beyond Border ensures your corporate documents support both current O-1 petition and future extensions.
Creating your US company structure O-1 petition requires several concrete steps. First, choose your state of incorporation. Delaware offers advantages for corporations but any state works. File your formation documents with the Secretary of State. Pay filing fees which typically range from $100-$300 depending on state. Receive your certificate of incorporation or organization as proof.
Second, obtain your federal EIN from the IRS online. This tax ID number identifies your business with US tax authorities. You'll need it for everything - bank accounts, tax filings, payroll, contracts. The EIN application is free and takes 10 minutes online. International applicants might need to apply by fax or mail if the online system doesn't accept foreign addresses.
Third, draft your corporate governance documents. For corporations, this means bylaws, initial board resolutions, and stock certificates. For LLCs, prepare an operating agreement detailing management structure and member rights. These documents prove your entity has proper internal organization. They show who has authority to sign contracts, hire employees, and file immigration petitions on the company's behalf.
Overwhelmed by setup requirements? Beyond Border connects you with formation services that handle all paperwork efficiently.
