Can small company that only has contractors sponsor H1B visa?

I’m currently doing an internship at a software company that only has contractors except the CEO (he is the only employee which is required by California law). I’m also an international student, and the CEO said that he will sponsor me for my H1B visa, so my question is that is his company qualified to sponsor me? Thank you!

The company seeking your services must be able to legally fit the description of a U.S. employer which is defined as a “person, firm, corporation, contractor or other association or organization in the United States with an IRS tax identification number known as a Federal Employer Identification Number (FEIN).” There must also be an employer – employee relationship which is demonstrated by the fact that you can be hired, fired, paid, or supervised. If you see all these conditions met, you are good to go.