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I’m planning to be sponsored through a company run by a relative. However, even though they’re a relative, we’re not actually that close.
I’d like to know in advance whether a relative can be a sponsor in principle, or whether this would be grounds for denial.
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In principle, a relative cannot serve as a sponsor. In reality, however, many people do proceed with employment-based immigration while concealing the family relationship. If the company is large and the relative doesn’t have significant influence over it, being sponsored this way likely won’t cause major problems. However, if the relative is one of only a couple of people at the company and directly handles the sponsorship themselves, and USCIS becomes aware of this, it would become a problem.