1. L1 Visas Starting a Business in the US
Presenters:
Hanover Law – Washington, DC
Sean R. Hanover, Esq.
Naveed Ahmed, Esq.
Charlet B. Herr, Practice Manager

2. What is an L1 Visa? From USCIS:
You are eligible for an L-1 visa if you are an executive, manager, or a worker with specialized knowledge who has worked abroad for a qualifying organization (including an affiliate, parent, subsidiary or branch of your foreign employer) for at least one year within the 3 years preceding the filing of your L-1 petition (or in some cases your admission to the United States). The organization must seek to transfer you to the United States to work  in one of the capacities listed above.
Initial period of stay in the United States: Up to 3 years (1 year for new office petitions). Extensions possible in up to 2 year increments. Maximum period of stay: 7 years for managers and executives; 5 years for specialized knowledge workers.

3. Steps in the L Visa Process
You must have worked for the foreign company at least 1 year of the last 3 years
You must start a company in the US that is wholly owned by the parent company overseas.
3. Once the company has been "founded", your L1 candidate must meet the requirements for the type of L1 that is being petitioned.

4. L1 (#1 Company Employment)
You must have worked for the foreign company at least 1 year of the last 3 years:
1. Must have proof of employment. Pay stubs are common.
2. Must have proof of residence outside of the US unless on current visa.
Should have proof of work in a similar
Capacity as that in the US.

5. L1 (#2 Start the US Company 1)
You must start a company in the US that is wholly owned by the parent company overseas.
To prove the parent company is legitimate:
a. Typically, the foreign company must be registered with the foreign company government in a business capacity (i.e. corporation, GmBH, Ltd., etc)
b. The foreign company must be shown to be paying taxes or other tax exempt
c. The foreign company should have employees, a place of business, and the ability to continue operations when the L1 individuals moves to the US. Although not strictly forbidden, it is very difficult to show that the branch in the US is a subsidiary of a fully operating foreign company when there is only one employee.

6. L1 (#2 Start the US Compant 2)
To start your new company, you must:
Incorporate in the state you wish to operate in.
Once incorporated, showing ownership by a foreign company,
you must obtain a TIN, and open a corporate account in the name of the US business.
The parent company must invest sufficient funds to run the new US business and pay for all operations. Generally, it must be enough for an entire year (you have one year to show a new business is operating well enough to fund itself and the L1).
You must obtain office, retail, or manufacturing space sufficient to run the proposed business.

7. L1 (#3 Requirements for Visa 1)
Once the company has been "founded", your L1 candidate must meet the requirements for the type of L1 that is being petitioned.
L1-A is a visa allowing an individual to live in the United States for a period of up to 7 years. Although in some instances, you can petition to extend your time, generally, you must return home for at least one year before coming back to the United States under another L1 status. The advantage of the L1-A is the ability to petition to become an EB1-C candidate after one year. Once approved, you will be given a Green Card (LPR status) and can remain in the US indefinitely.

8. L1 (#3 Requirements for Visa 2)
To obtain an L1-A you must:
Demonstrate you work in a managerial, executive, or leadership position within the company. This means you have authority over spending, hiring, firing, and business decisions that effect the entire US company/operations. There can be more than one executive, and depending on the size of the company and the "office" in the US, there may be several working on different aspects of the work in the US.
The initial approval of L1 status will be for one year. However, if your business is successful, renewal is not a problem.
To obtain an L1-A you must:
a. Demonstrate you work in a mangerial, exeuctive, or leadership position within the company. This means you have authority over spending, hiring, firing, and business decisions that effect the entire US company/operations. There can be more than one executive, and depending on the size of the company and the "office" in the US, there may be several working on different aspects of the work in the US.
b. The initial approval of L1 status will be for one year. However, if your business is successful, renewal is not a problem.
Typical criteria to prove management:
i. Control of a budget of $300,000 or more
ii. Control of at least 2 to 5 other professionals (individuals that have degrees and/or decision make capability within the company)
iii. Generally, does not do day-to-day work in the company, rather manages the work of others. This provision is relaxed during the first year of operation of a new business; however, at the end of one year, you will need to show that your business is sufficiently successful to pay the salary of the L1-A without that person needing to work in the day-to-day business. There are some execptions here.
iv. Earn a salary commensurate with the executive level of an L1-A. For example, if the foreign company has a gross of $3 million per year, paying an "exeuctive" $50,000 is probably indicative of that person not being a senior manager or executive. Salary is not the only consideration, but payment outside the scope of executive range will cause questions.
v. Must show that the individual actually makes decisions at the executive level. This includes copies of memorandums, letters, s, and other documents poving authority and activity.

9. L1 (#3 Requirements for Visa 3)
An L1-B is a visa for foreign nationals with specialized skills and abilities. These individuals fill key billets in your US company in order for expansion and growth. Generally, they fall into three groups: (1) market penetrations experts (specialized knowledge of the market), (2) business process and product experts (research experts), (3) internal controls and administration (hardest group -- highly specialized in managing aspect of the company such as CPA's, specialized attorneys, and specialized doctors).
To obtain an L1-B:
i. Must have a degree or qualification that substantially sets you apart from an average worker in the same field. A Master's or higher degree is a good start here.
ii. You must have speicialized knowledge not generally known to those merely working in the field.
iii. You must have considerable and in depth experience in the field. Usually, 5-10 years in the specific area is sufficient for this.
iv. The position must be "key" -- a critical position for the success of the business. This does not mean it must be profit generating. Rather, it must be specialized and not other known or available to the average worker.

10. L1 Last Thoughts
Like an L1-A, the initial L1-B is good for one year. Thereafter, it may be renewed for up to four additional years in Country.
To avoid problems, document, document, document.

11. Hanover Law, PC
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