Starting a Business in the U.S. on an L1 Visa

Starting a business in a new country is a big step, especially in a place as dynamic and opportunity-filled as the United States. If you’re already part of a company abroad and are dreaming of expanding into the U.S. market, the L1 visa might be your golden ticket. This visa category allows foreign executives, managers, or specialized employees to transfer to a U.S. office or even start a new one.

In this guide, we’ll walk you through what the L1 visa is, who qualifies, and how it can help you bring your business vision to life in the United States. No confusing legal jargon, just the essentials you need to know.

What is an L1 Visa?

The L1 visa is a non-immigrant visa designed for intracompany transferees. That means it’s for individuals who work for a company outside the U.S. and are being transferred to a related business inside the U.S. The related business can be a branch, parent, subsidiary, or affiliate of the foreign company.

There are two types of L1 visas:

•  L1A is for executives and managers.
•  L1B is for employees with specialized knowledge.

If your goal is to open a new office in the U.S., the L1A is usually the best fit.

Can You Start a Business in the U.S. with an L1 Visa?

Yes, you can. The L1A visa is commonly used by foreign companies wanting to establish a presence in the United States. If you’ve been working for the company abroad for at least one continuous year within the past three years, and your role is either managerial or executive, you can apply to open a U.S. branch or subsidiary.

Here’s the exciting part, you don’t have to wait until the U.S. office is fully operational. The L1A visa lets you come in and build that office from the ground up.

Key Requirements for L1A New Office Petitions

Opening a new office in the U.S. sounds amazing, but there are some boxes you’ll need to tick. Here’s what USCIS (U.S. Citizenship and Immigration Services) generally looks for when reviewing a new office petition:

1. Qualifying Relationship Between Companies

The U.S. entity must have a clear relationship with the foreign company. That could mean it’s a subsidiary, branch, or affiliate. The ownership structure and control must be clearly documented.

2. One Year of Prior Employment

You must have worked full-time for the foreign company in an executive or managerial capacity for at least one continuous year within the last three years.

3. Business Plan and Physical Office

You’ll need a detailed business plan showing what the company will do, how it will grow, and how you plan to hire U.S. workers. Plus, you need to secure a physical office space in the U.S. A home office typically won’t meet the requirement.

4. Ability to Support Executive Role

USCIS wants to see that the U.S. business will grow to a point where your role remains executive or managerial. That means you’re planning to hire staff and delegate tasks, rather than handling everything yourself long term.

Step-by-Step: How to Start Your Business on an L1 Visa

Now that you know the basics, let’s walk through how to actually get started.

Step 1: Evaluate Your Eligibility

Make sure you meet the one-year employment requirement and that your role and the business structure qualify for an L1A visa.

Step 2: Set Up Your U.S. Business Entity

Decide whether to form a corporation, LLC, or another type of legal entity. Then register it in the state where you’ll operate. You’ll also need an Employer Identification Number (EIN) from the IRS.

Step 3: Secure Office Space

Find and lease commercial space for your business. USCIS prefers leases that last at least one year to show your commitment.

Step 4: Develop a Strong Business Plan

Outline your goals, hiring projections, organizational structure, marketing plans, and financial forecasts. This shows USCIS that the business is viable and that your executive role is legitimate.

Step 5: File the L1 Petition

Have your company (the foreign one or the U.S. entity) file Form I129 with the L supplement. Include supporting documents like the business plan, lease agreement, and organizational charts.

Step 6: Wait for Approval

Once the petition is approved, you can apply for the actual visa at a U.S. consulate or embassy abroad. If you’re already in the U.S. under a different visa, you may be able to change your status.

What Happens After You Arrive?

When your L1A visa is approved, you’ll be granted an initial stay of up to one year to establish the new office. During this time, you should:

• Start hiring employees
• Begin business operations
• Show growth in revenue or client base

When your one-year term is up, you’ll need to file for an extension. USCIS will look at whether you’ve hit your milestones and if your role is still primarily executive or managerial. If things go well, your stay can be extended in two-year increments for a maximum of seven years.

Common Challenges and How to Overcome Them

Like any big endeavor, starting a business on an L1 visa isn’t without hurdles. Here are a few common challenges:

Proving the Executive Role

When the U.S. office is new and small, it’s hard to prove that you’re not just running day-to-day tasks. Hiring early and delegating can help support your case.

Building Fast Enough

You’ll only get one year at first. If your business doesn’t show growth, your extension may be denied. Stick to your business plan and focus on sustainable growth.

Visa Denials

If USCIS isn’t convinced by your petition, they might issue a Request for Evidence (RFE) or deny the application. Working with a qualified immigration attorney can help avoid common pitfalls.

Advantages of Using an L1 Visa for Business Expansion

If you’re eligible, the L1 visa offers some great advantages:

• You don’t need to invest a specific amount of money, unlike the E2 visa
• Your spouse can apply for work authorization in the U.S.
• It can lead to permanent residency (green card) through the EB1C category

It’s a smart path for international entrepreneurs and business leaders who want to bring their vision to the American market.

Final Thoughts

Starting a business in the U.S. on an L1 visa is an exciting journey filled with opportunity, strategy, and responsibility. If you’ve built something great abroad and want to bring it stateside, this visa can help you make it happen. Just remember, preparation is everything. With a clear plan, proper documentation, and a little patience, your American business dream can become a reality.

Are you ready to take the leap and bring your business to the U.S.?