People considering moving to the United States for business purposes often find themselves deciding between the L-1 visa and the E-2 visa. Both can be useful options for entrepreneurs, investors, and business professionals, but they have very different eligibility requirements.
The right option depends on your circumstances, including your citizenship, work history, business structure, investment plans, and long-term goals.
Here are some important questions to ask when deciding between an L-1 visa and an E-2 visa.
What is the L-1 Visa?
The L-1 visa is an intracompany transferee visa. It allows an employee of a company outside the United States to transfer to a related company in the United States. Depending on the circumstances, the employee may qualify as a manager, executive, or specialized knowledge worker (an employee with knowledge/skills crucial to the company’s service, research, equipment, management, or techniques).
What is the E-2 Visa?
The E-2 visa is an investor visa. It allows people to invest in a U.S. business, either by starting a new business or purchasing an existing one.
Based on the investment, the investor can live in the United States and operate the business. The E-2 visa can be renewed as long as the business continues to satisfy the E-2 requirements.
To qualify, an investor, or employee of the investor, must be from a foreign country that maintains a treaty of commerce with the U.S and invest a substantial amount of capital in a U.S. enterprise.
With those basic differences in mind, the following four questions can help you determine which option may be more appropriate.
1. What Is Your Country of Citizenship?
The first question to ask is whether your country of citizenship has an E-2 treaty with the United States. The E-2 visa is based on a treaty between the United States and the applicant’s country of citizenship. As a result, the E-2 visa is not available to citizens of every country.
Some large countries, including India and China, do not have E-2 treaties with the United States.
If your country does not have an E-2 treaty with the United States, the E-2 visa generally will not be an option based on that citizenship.
2. Do You Have a Qualifying Foreign Company and Work History?
If you are considering an L-1 visa, you need to determine whether there is a foreign company that satisfies the L-1 requirements.
There must be a company outside the United States that transfers a qualifying employee to a related U.S. company. If there is no foreign company, the L-1 visa is likely not the appropriate option.
You also need to consider your work history. The L-1 applicant must have worked for the foreign company for one continuous year of full-time employment within the three years before applying for the L-1 visa.
Your position within the foreign company is also important. The qualifying employment must involve work as a manager, executive, or specialized knowledge worker.
VisaNation Tip: The Foreign Company Must Continue Operating
The foreign company also cannot simply be a one-person operation that will cease functioning when the employee transfers to the United States. The foreign company needs to be sufficiently established that it can continue operating while the L-1 applicant works in the United States. If the company is too small and is expected to shut down once the employee leaves, the L-1 may not be a viable option.
3. Can You Invest Significant Funding Into a U.S. Business?
Another important question is whether you are willing to invest a substantial amount of money into a U.S. business and, if so, how much.
The E-2 regulations do not specify a minimum amount. An investment below $100,000 can potentially qualify, but a larger investment may provide a stronger basis for demonstrating that the investment is substantial.
If you are not planning to invest money into a U.S. business, the E-2 visa is probably not the best option for you.
4. What Are Your Long-Term Goals in the United States?
Your long-term immigration goals are another important factor to consider. Both the L-1 and E-2 are nonimmigrant visa categories. Neither visa directly gives you a green card.
The L-1 has a tight deadline of 5 years (specialized knowledge) or 7 years (managers, executives). In contrast, you can renew the E-2 indefinitely.
However, there are potential pathways from both visa categories to permanent residence:
L-1 to EB-1C
For L-1 visa holders, one potential route to a green card is the EB-1C classification. The EB-1C requirements overlap in several ways with the L-1 requirements. The classification can apply to individuals who worked for a foreign company as a manager or executive and are transferred to a related U.S. company to work in a managerial or executive capacity.
Because of these similarities, the EB-1C is a common green card route for people who initially obtain L-1 status.
E-2 to EB-5
For E-2 investors, one potential green card route discussed is the EB-5 immigrant investor category. The EB-5 allows an individual to invest in a U.S. business and create jobs for U.S. workers. The EB-5 can be an option of interest to some E-2 investors, as money already invested in an E-2 business may potentially count toward the EB-5 investment amount if the E-2 business is used as the qualifying EB-5 enterprise.
