If your sponsoring employer goes out of business, the impact on your immigration status depends on your visa type. For most employment-based nonimmigrant visas (like H-1B, L-1, or O-1), your legal status is tied to your employment. If the company shuts down, your status generally ends immediately, but you may be eligible for a 60-day grace period to find a new employer, change status, or leave the U.S.

If your sponsoring employer shuts down before your petition is approved (e.g., during PERM, I-140, or before USCIS decision), the case will generally be considered abandoned, and you’ll likely need a new employer to start the process from the beginning. Timely legal advice is important to explore alternatives like changing status, transferring to another employer, or switching visa categories.

Losing your job because the sponsoring employer shuts down can put your status at risk, but not all hope is lost. If you're in H-1B status, you may have a grace period of up to 60 days to transfer your visa to a new employer. If you’re applying for a green card and meet certain timing and job similarity requirements, portability under AC21 may allow you to continue your application.