The L-1 visa, also called the intracompany transferee visa, allows U.S. companies to transfer employees from abroad to work in executive, managerial and specialized knowledge roles. The employee must have worked abroad at a company that has a qualifying corporate relationship with the U.S. company and their role abroad must qualify as an executive, managerial or specialized knowledge role.
- Small companies can sponsor L-1 employees, but must carefully classify roles as managerial or executive, regardless of C-level titles.
- Include a detailed business plan and hiring projections to show sufficient organizational structure for an executive or managerial position.
- Expect closer USCIS scrutiny and consider future EB1C green card risks where past small-company roles may not meet heightened standards.
What Is the L-1 Visa and Can Small Companies Qualify for It?
A common question we receive is whether small companies can qualify to sponsor employees on the L-1. The answer is yes, however, there are some strategic considerations to keep in mind when filing an L-1 petition for a small company.
Key Strategic Considerations for Small Companies Filing L-1 Petitions
Small Companies: Don’t Assume a C-Level Title Means Executive Status
Do not assume that a C-level job title means the employee should be classified as an executive. Smaller companies have fewer employees, meaning the structure may be more flat and less hierarchical, as one employee may work to support many different parts of the operation. According to the regulations, an executive “direct[s] the management of an organization…” If the employee does not have any managerial employees to direct, it can be more difficult to prove that they meet the executive definition. This means that for a smaller company that does not have any managers, it can be a better strategy to classify the employee as a manager rather than an executive, even if they have a title such as CEO or CFO.
Include a Business Plan Showing Future Hiring
If the U.S. company is ramping up operations, a comprehensive business plan with a 5-year hiring chart can be helpful to demonstrate that the business will have sufficient structure to support an executive or managerial role. For a new office L-1 case, where the U.S. company has been operating for less than one year, it is even possible to apply with zero U.S. employees as long as the business plan shows that the company plans to hire a sufficient number of employees to support a managerial or executive role within a one-year period.
Anticipate Additional Scrutiny and Explain the Business Model Clearly
If the company is small, USCIS may scrutinize the operation more closely to ensure all requirements are met. It is a good idea to be clear about the company’s structure and explain how it operates. For example, in a prior case with only two U.S. employees, it was still possible to get an L-1A approved by demonstrating a comprehensive structure of foreign staff and independent contractors and franchisees that supported the marketing, finance, legal and operational functions.
Understand the Impact of a Small Company on Future Green Card Applications
Many L-1A visa holders are interested in applying for a green card to remain in the U.S. permanently. A common green card category for L-1A visa holders is the EB1C green card for multinational managers or executives. Although the L-1A and EB1C requirements are similar, the EB1C generally has a heightened standard for approval, given that it is a permanent green card rather than a temporary work visa. If the L-1A visa holder worked for a small company abroad and had a difficult time obtaining the initial L-1A due to the small foreign operation, this makes the EB1C option riskier. In the EB1C application, USCIS will look back at the size of the foreign company at the time the L1A visa holder was working there. This means that even if the foreign company has grown significantly over the years, the EB1C application is still risky as USCIS will focus on whether there was sufficient structure to support an executive or managerial role during the qualifying year of employment abroad, which may be several years prior to the time the EB1C application is filed.
Get Experienced Guidance for Your Small Company’s L-1 Visa Petition
At Scott Legal P.C., we have extensive experience working with small companies on L-1 petitions. We encourage you to schedule a consultation with our legal team to develop a strategy tailored specifically to your immigration and business goals.
