L-1A or E-2 visa – transfer or investment

Once the decision has been made to set up a business in the USA, the question often arises as to which visa is the most suitable: the L-1A transfer visa or the E-2 investment visa. Which of the two visas offers the best opportunity depends on the individual case. In the case of the L-1A visa, the applicant should be aware that the L-1A visa may not be extended and the E-2 visa must be applied for as an alternative. However, this can also lead to a green card as long as the home business is maintained.

L-1A Transfer visas

The L-1 A visa serves as a transfer visa for managing directors and managers. The basic requirement is that the applicant works as a managing director or manager in a company outside the USA, which then opens a branch office in the USA and transfers the employee there. The employment relationship must have existed for at least one year. The “home company” must be active and remain active as long as the L-1A visa is valid. The “home company” should also have employees.

The US company must be registered and set up. This includes a rented and furnished office, bank account, business plan, etc. At the same time, the US business must be able to demonstrate the need to transfer an employee from the top management of the parent company to the USA. This is usually due to the complexity of the business and the number of employees to be hired. No minimum investment is required.

There must be a qualifying relationship between the home company and the US company. Put simply, there must be an equal ownership relationship. How long the L-1A visa is issued depends on how long the US company has been in existence. If it has been in existence for less than a year, the L-1A visa is initially issued for one year and can then be extended twice for three years.

The extension of the L-1A visa is where the “horse’s foot” of this visa lies. It is required that the US company already employs so many people that the managing director or manager is only digerating. The bar is set high. This does not mean that it is impossible, but it is not easy to obtain. What is the alternative if the L-1A extension is not positive? As a rule, you can then switch to the E-2. All expenses incurred during the year and before can be claimed as an investment.

A widespread question is whether the change from L-1A does not also pave the way to the green card is blocked. This is not the case. As long as the home company remains in existence and the managing director or manager works in this position in the USA, the basic elements for a Multinational Manager Green Card remain the same, regardless of whether the applicant has an E-2 or L-1A visa.

E-2 Investor visas

The E-2 investor visa requires an investment of at least $80,000 to $100,000 in the purchase or start-up of a U.S. business.

Here too, the US company must be set up and ready to go before the visa application is submitted. If an existing business is acquired, the purchase agreement must be in place and the purchase price must be held in an escrow account. The transfer of ownership may be subject to the visa being granted. With the E-2 visa, it does not matter whether the applicant has a “home company” or not. The visa is issued for 2 to 5 years and, as with the L-1A visa, includes spouses and children up to the age of 21.

So far, there is no direct path from the E-2 visa to the green card. Although the draft bill is already available, it is unknown whether and, if so, when a decision will be made on it. This means that if the investor wants a green card and has an active company in their home country, it is advisable to maintain this in order to preserve the path to the Multinational Manager Green Card. This is because this requires the applicant to be a managing director or manager in two active companies in two different countries.

It is true that it is legal to have a firearm in your home in Florida. However, this is not possible without a firearms license. This must be applied for and the person who wants to buy a gun must also take a course and pass a background check. The weapons are registered. Not every American can buy a gun indiscriminately and there are certainly Americans who are not allowed to buy a gun. Criminals obtain guns illegally on the black market, just like anywhere else in the world.

This article does not constitute legal advice, but is for general information purposes only.