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The “New Office” L-1A: No Longer the Entrepreneur’s Best Friend?
By: Russell Lawson. This was posted Thursday, September 3rd, 2009
Loading ...What is an L-1 nonimmigrant visa?
L-1 nonimmigrant visas are utilized by U.S. corporations to temporarily employ (up to 5 or 7 years depending on type) certain foreign workers employed by the company’s foreign parent, affiliate, subsidiary or branch office. The L-1 visa is broken into two eligibility categories: (1) international managers and executives, and (2) specialized knowledge employees.
How is an L-1A visa utilized by entrepreneurs?
The “new office” L-1A visa is utilized by foreign companies opening U.S. affiliate, subsidiary, or branch offices to transfer key executives to run the new U.S. offices. This L-1A visa was perfect for this purpose because it required less of an initial investment than would be required for a treaty investor’s visa (E-2).
Why might the L-1A no longer be the “entrepreneur’s best friend?”
Generally, to be eligible for an L-1A visa, the U.S. operation must have been in operation for at least one year. The “new office” exception exists to this general rule so that the L-1A can be utilized for the opening of new U.S operations. At the end of this first year of operation, the company must prove that the U.S. operations are “active and operating.”
Proving that the U.S. operations are “active and operating” to the satisfaction of USCIS is now more difficult than ever. This is generally proven by evidence of extensive clientele, growth in income, hiring additional employees, etc. And, here is where the issue lies. Over the past year, considering the financial difficulties being faced by small companies nation-wide, very few companies could prove growth in clientele, income, or employees.
Are the “new office” L-1 visas still useful?
The L-1 visas are incredibly advantageous to the U.S. because they are used by foreign corporations to open and operate business in the U.S. This generally leads to tax revenue, employment, and increased profits for related industries.
The “new office” L-1 visa is still advantageous to the entrepreneur, even if meeting USCIS’ stringent requirements for extension is difficult. As the economy improves, the “new office” L-1 will likely be the entrepreneurs best friend again!
For more information on this or any other type of nonimmigrant visa, please conact our office.
Tags: entrepreneur, foreign corporation, international corporation, L visa, L-1A, L-1B, nonimmigrant visa, United States Citizenship and Immigration Services, USCIS
