Skip the $100,000 H-1B Fee: Why Setting Up a Company in Mexico Is the Smarter Move

September 21, 2025

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Alexander Stripes

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Introduction

Discover in this article how H-1B visa fee alternatives Mexico can open new opportunities for foreign professionals and investors by incorporating a company in Mexico.

The U.S. government’s recent decision to impose a $100,000 fee on every new H-1B visa petition is forcing companies and foreign professionals to rethink their hiring and expansion strategies. For many startups and even mid-sized firms, absorbing this cost is simply not feasible.

But there is an alternative: instead of paying $100,000 just to secure a visa, businesses and entrepreneurs can incorporate in Mexico—a cost-effective and strategic solution that opens access to skilled talent, lower operating costs, and a gateway to North America.

Why the $100,000 Fee Changes Everything

  • Upfront cost: Sponsoring just one worker under H-1B now requires a six-figure investment before salary, benefits, or legal fees are considered.
  • Barrier for startups: Smaller companies and startups lose competitiveness against larger corporations with deeper pockets.
  • Talent risk: Professionals abroad may see opportunities vanish if employers can’t justify the cost.

This fee is not a one-time inconvenience—it fundamentally changes the calculus of global hiring.

Why Mexico Is the Strategic Alternative

1. Incorporation Costs a Fraction of the H-1B Fee

Setting up a SAS (Sociedad por Acciones Simplificada) or Anonymous Society of Variable Capital in Mexico can often be completed for less than 5% of the new H-1B fee. Instead of burning $100K on a single petition, a company can establish an entire legal entity.

2. Hire International Talent Legally in Mexico

  • Register employees with IMSS and SAT.
  • Issue compliant payroll and benefits.
  • Hire both Mexican and foreign professionals with the right permits—without relying on U.S. immigration bottlenecks.

3. Tax Optimization Through Treaties

Mexico has double taxation treaties with over 50 countries, including the U.S. and Canada, reducing the risk of being taxed twice and improving after-tax efficiency.

4. Nearshore Advantages

Mexico offers:

  • Time zone alignment with U.S. markets.
  • Skilled workforce in tech, finance, manufacturing, and services.
  • Lower labor and operating costs, often reducing expenses by 40–60% compared to the U.S.

Case Study: Startup Expansion Without H-1B

A U.S. tech startup planned to bring three engineers under H-1B visas. Under the new rules, the upfront cost would have been $300,000 in visa fees alone.

Instead, the company opened a subsidiary in Guadalajara. For less than $15,000 in incorporation and setup costs, they:

  • Registered their Mexican entity with SAT.
  • Opened a corporate bank account.
  • Hired the same engineers locally, fully compliant under Mexican law.

Result: 60%+ cost savings, immediate access to talent, and freedom from U.S. visa restrictions.

Conclusion

Paying $100,000 for a single visa is no longer the only option for companies that want access to international talent. Incorporating in Mexico provides a cost-effective, compliant, and scalable alternative that not only avoids the new H-1B barrier but also positions businesses for long-term growth in North America.

At Tax ID Mexico, we specialize in helping foreign entrepreneurs and companies set up entities, register for taxes, and build compliant payroll systems.

Contact us today at hgalicia@taxid.mx or +52 33 1023 5948 to learn how you can expand into Mexico—without paying $100K just to get started.

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Written by Alexander Stripes

Graduated from the International Business degree at the Universidad de Occidente (U de O), with experience in the Import and Export of goods to the country, he currently works as General Administrator and in charge of the Department of Foreign Trade of the Firm of Public Accountants TAX ID Mexico. info@taxid.mx

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