Foreign entrepreneurs and professionals often approach VisaNation Law Group seeking to discover their options for starting a business in the United States. While each scenario is different, there are several viable visa options made available by the U.S. government. In this post, we’ll explore which pathways may be appropriate to start or expand an enterprise in the country, including business visitor visas, treaty investor visas, intracompany transferee visas, and more.
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Nonimmigrant Business Visa Options to Start a Business in the United States
When considering starting and managing a U.S. business as a foreigner, many nonimmigrant visas offer an excellent opportunity. Nonimmigrant visa are issued to individuals who maintain a permanent residence in their home country but wish to enter the United States for the purpose of business, temporary work, or even education. Many of these visas offer entrepreneurs the opportunity to start and run a business.
B-1 Business Visitor Visa
Many individuals believe the B-1 Business Visitor visa is the most suitable option to start and run a business in the U.S., simply because of the name. Unfortunately, this is a widespread misconception becayse while you can incorporate a business while on a B-1 visa, you cannot actively manage and work in the company.
The B-1 visa is intended for those who need to stay in the U.S for a limited period (less than 6 months, but extensions are possible). A good way to evaluate whether this is the right visa for you is to carefully look at which activities are permitted under the B-1 visa:
- Conducting or facilitating negotiations
- Planning meetings, investments, or purchases
- Carrying out research, conducting interviews, or hiring staff
- Looking for office space, negotiating a lease
- Purchasing goods or materials related to the business
The visa may be issued for up to 10 years, but each entry period is limited to six months (with the possibility to file for an extension up to 12 months). You must also be able to provide documentation that you have adequate funds to cover all expenses while residing in the United States.
Disadvantages of the B-1 Visa
- Does not allow for active management or managing employees.
- Not as flexible as other visa options
- Not intended for long-term activity (more than 6 months to one year)
- Not applicable to individuals looking to perform labor in the U.S.
Do you currently have an established business in your country? If you do, consider L-1, E-1, E-2 or EB-5 visa options. See below for additional details and read our completeEntrepreneur Visa Guide.
E Visa Options Overview
There are two types of investor visas, the E-1 and E-2.
An E-1 Treaty Traders Visa is ideal for foreign professionals, managers, and investors from a treaty nation who wish to enter the U.S. to either engage in a trade between the U.S. and a foreign enterprise or oversee a sizeable investment in the U.S. While there is no specific dollar amount that constitutes a trader on E-1 visa status, at least 50% (or more) of trading activity should take place in the United States.
The benefits of an E-1 visa are that you can travel to and from the U.S. freely, you can have unlimited two-year extensions while you maintain status, and your dependents are permitted in the country with you while you have E-1 status. What’s more, your spouse receives automatic employment incident to status.
If you are an investor looking to launch a U.S. business, then the E-2 visa may be the perfect solution. USCIS does not give a dollar amount for the investment that must be made. It only stipulates that the investment must be substantial.
The rule of thumb is that the more expensive the enterprise, the smaller the percentage of the total value your investment can be.
For example, if the enterprise is worth $5 million, then you may only be responsible for $500,000, or 10%, of the total value. However, if your enterprise is worth $150,000, you may be responsible for a significant portion, if not all, of that amount.
Like the E-1 visa, you can renew your visa indefinitely, and your spouse and dependents can join you under your status.
Applying for an E-1 and E-2 visa is a nearly identical experience. Applications for both are submitted to the U.S. Embassy or Consulate with proper jurisdiction. The difference would be in the amount and type of supporting documents submitted.
L-1 Intracompany Transferee
An L-1 Intra-Company Transferee Visa is for individuals who work for a multinational company as high-level executives, managers, or other specialized employees. This visa is sought when a foreign-based company needs to transfer an employee from a foreign branch to the United States to support operations or launch a new branch.
One of the greatest advantages of this visa is that spouses and dependents of the L-1 visa holder may receive an L-2 visa, which permits them to work in the country during their period of stay. Additionally, an employer can file a blanket petition to cover multiple L-1 visas at the same time.
Types of L-1 Visas
- L-1A visas are for managers and executives (or any other high-level personnel who have supervisory functions)
- L-1B visas are for employees within the multinational company who possess specialized knowledge of the organization’s business
The L-1A is the most relevant one to this post, as it allows managers and executives to start a new branch or office of the company in the U.S. In this case, the visa will only be issued for an initial period of one year instead of the typical three. However, USCIS will re-evaluate your case after the new branch or office has been in operation.
If you think an L-1 Intracompany Transferee visa may be applicable to you, contact an immigration attorney.
H-1B Visa
With an H-1B Visa, you can start a business that you have full or controlling ownership. Once the business is established, the entity you’ve created can legally sponsor your H-1B visa.
To qualify, the role you plan to fulfill must require a bachelor’s or higher degree, or its equivalent, to perform the duties. Additionally, the owner must perform specialty occupation duties a majority of the time. In other words, if you want to use the H-1B visa as the pathway, you cannot simply be a passive owner.
EB-2 NIW and EB-1A Green Cards
Up until now, we have covered nonimmigrant visas that are designed to grant the holder a limited time to work in the United States. Immigrant visas (green cards), however, are long-term and grant the holder legal permanent residency and eventually citizenship in the U.S.
Both the EB-2 NIW and EB-1A Green cards offer the opportunity for self-sponsorship, meaning no employer is necessary. Both also avoid PERM labor certification, a complex and lengthy two-year certification process that most employers must conduct to protect American workers.
These two green card options are excellent for truly extraordinary individuals at the top of their field, or for entrepreneurs whose work aligns with the national interests of the United States. While they are the most difficult green cards to qualify for, they offer substantial benefits to those with the right profile.
Recently, we supported a Quantitative Model Developer with an EB-2 NIW. Our legal team connected our client’s specialized research on interest rate sensitivities directly to the prevention of systemic shocks, such as the Silicon Valley Bank liquidity crisis. Today, his work ensures U.S. banks maintain the capital necessary to withstand global economic turmoil.
EB-5 Investor Green Card
EB-5 visas require the investor to contribute between $800,000 to $1,050,000 in a commercial enterprise (a $800,000 investment is required for those located in a rural or high-unemployment area). These areas can be defined as experiencing a minimum unemployment rate of 150% of the national average. The money can be obtained through a multitude of means, including inheritance, a gift, or other legitimate ways.
According to USCIS, a commercial enterprise includes (but is not limited to):
- Sole proprietorship
- Partnership
- Holding company
- Joint venture
- Corporation
- Business trust
After being approved for this status, dependents under 21 and spouses may also receive green cards as accompanying relatives.
Final Tips
One thing to keep in mind as you work on starting your business in the U.S. is that the USCIS and Department of Labor are constantly striving to protect U.S. jobs and the workforce. One great way to make your case stronger with these federal entities is to hire U.S. workers as soon as possible. This is especially true for the L-1A visa when starting a new branch or office. Many executives and managers attempt to staff the new office with other L-1 holders from the company, but this can look bad when you request an extension after your first year. By hiring U.S. workers, you show the USCIS that the decision to grant you a visa to start a business in the country helped the American workforce.
