If you plan to start or scale a business in the United States, selecting the right visa is one of the most important early decisions. For many foreign business people, the E-2 and L-1 visas are the best choices.
But then they have different purposes and different demands. Knowing the right one for your startup vision can save you expensive delays and prepare you for success.
How the E-2 Visa Works for Startup Investors
The E-2 visa is most successful if you are investing your capital in a U.S. business. To be eligible, you must be a national of a country that has an E-2 treaty with the United States. And you have to make a “substantial” investment in a real, operating business. The investment must be for active business operations — it can’t just be parked in a bank account or invested in passive assets such as real estate.
You typically need to spend around $100,000, though we have worked on approved plans for less if the business plan is solid and the operations are well-defined. Generally, the filing fee for the U.S. government costs about $205. But the legal and preparation fees typically fall from $4,000 to $7,000, depending on the nature of the case.
One of our clients, a Frenchman, opened a digital marketing company in Florida. She spent $120,000 on office space, software tools, and salaries. We walked her through the E-2 application process, and she got her visa after a couple of months. Now, her business is thriving, and she has already started planning her green card strategy for the future.
If you can invest in and run a business, the E-2 visa provides a measure of flexibility and the ability to renew it as long as your enterprise remains active and profitable. Reach out to us and let us know if the E-2 aligns with your entrepreneurial objectives.
How the L-1 Visa Supports International Expansion
An L-1 visa assists business owners who already own a successful company in another country and want to open a branch or affiliate in the United States. Your foreign company must still be in business, even as you grow into the U.S., in order to qualify. You also have to demonstrate that you worked for the foreign entity for at least a year in the last three years.
The former mood states are provided through the L-1 category, and the latter mood states through the H-1B or L-1 visa. Entrepreneurs typically apply for the L-1A if they’re going to run the U.S. office themselves. And if you are just beginning in the American market, you can apply for a “new office” L-1, which gives you one year to get your business off the ground in America.
Government filing fees for the L-1 visa usually begin at approximately $960. If you opt for premium processing to receive a quicker decision, that adds $2,805. On average, L-1 petition legal fees are between $5,000 – $8,000.
One was a client in India who was the owner of a logistics company and was looking to move into the U.S. market. He opened a division in Texas and relocated himself to run it. After one year, he extended his L-1A visa with ample proof of business expansion, and we started the EB-1C green card process for multinational managers.
The L-1 visa might be the most strategic route to take if you are running a business abroad and want to expand into the U.S. Schedule a consultation with The Law Office of Olena Manilich to discuss the possibilities.
Which One Fits Your Business Plan?
The E-2 and L-1 visas have their strengths and advantages. The E-2 is a better fit if you’re investing your funds into the start-up of a new U.S. business. It provides exclusive control, but only for those of a qualifying nationality and with money to spend. The L-1 is more effective if you already have a business overseas and want to extend it into the United States without having to invest personal money at the beginning.
Your objectives and resources, and business type will determine the best match. When it comes to long-term residence, the L-1 may offer a smoother path to a green card. On the other hand, if you have funds to invest and would like quicker entry into the United States, the E-2 might offer more flexibility.
To receive the best advice on the type of visa to open a business in the U.S., contact us at The Law Office of Olena Manilich. We will guide you in selecting the appropriate visa, assist you in filing your application, and safeguard your immigration strategy for the long term.
