Understanding L1 & EB1C Visas with Andrew Shepin – Episode 37

Mona, Mark and Andrew Shepin talk about the L1 and EB1C visas. Compare them to the E2 and EB5 visas and outline potential advantages and hidden pitfalls.

Welcome back Mona from all her travels. Four countries in nine days! Mona spoke with investors, agents, and lawyers and realized how little people know about U.S. laws and how much of it some people make up.

Let’s continue to clear that up.

Although EB5 was at the center of Mona’s international travel, it wasn’t the only part. There was a lot of interest and questions for alternatives to the EB5 program.

So on this episode, we are covering L1s and EB1c.

 

Listen to “L1 & EB1C Visas with Andrew Shepin” on Spreaker.

 

L1: Intracompany Transferee

 

• This is a non-immigrant temporary visa – not a green card.
• This visa allows overseas companies to transfer their employees to new or existing companies in the US. Although this may only seem applicable to large multinational companies, it can also be used by smaller companies as well.
• Must have a corporate relations between the foreign company and the U.S. company.
• The employee must have worked for the foreign company for at least one year out of the last three years

 

L1A: Intracompany Transferee Executive or Manager

• Max 7 years and can’t be extended.
  • 3 years, 2 years, and another 2 years (total of two renewals over seven years) for existing companies.
  • 1 year, 2 years, 2 years, and another 2 years (total of three renewals over seven years) for new companies.
• Since this is a managerial visa the application must be very detailed in the manager’s responsibilities as well as the job description.

L-1B Intracompany Transferee Specialized Knowledge

• Max 5 years.
• Highly specialized. After five years, the employee must leave the country and work for at least one year for the international company before applying again.

L1 Benefits

• Unlike the E2 Visa, there is no treaty traitor country restrictions for the L1 visa (i.e. China, India, and others).
• There is also no visa quota as there is with the H1B.
• Spouse and children under 21 can also obtain a visa. The spouse of the L1 holder can also apply for U.S. work authorization
• Again, unlike the E2 visa, the L1 can give you a path to a green card although it is not a green card itself.
• The application can be adjudicated in as little as 15 days with premium processing

 

Although there is no set minimum investment amount, there can be a catch. That will be covered later.

 

EB1c: Employment-Based Immigration: First Preference

• This visa is becoming very popular especially in countries like China that are impacted by the retrogression of EB5 and the lack of availability for the E2 Visa

• No sponsor is needed for an EB1c petition

• It is also a fast petition with expedited processing occurring within 3 to 4 weeks

 

 

Andrew talks addresses some common financial questions regarding EB1.

 

Do I need to buy or establish a company in the United States doing basically the same as the foreign company is doing right now?

 

• No. You can do whatever you want. Andrew offers a personal example of how he was doing financial advisement and Switzerland and came to the United States working with the nurse placement company.
• He also offers an example from one of his past French clients that was managing a trucking company and came to the United States to manage a painting company. The case was made by showcasing his ability to manage a large workforce.
• Same business owner or subsidiary should I own the domestic business as the international business. Essentially the business does not need to be the same.

 

 

Will the save your money?

 

• Andrew calls this the L1A trap. Though there is no defined amount invested, the typical investment is $100k – $150k. This looks cheaper than EB5, but would not make the L1 ready for the EB1C green card in many cases. Just as in EB5 – employment is key.
• 5 professional employees or 10 general employees within 2-3 years. The payroll requirement combined with other expenses may greatly increase required funding.
• Need to wait at least a year before applying for the EB1C if going from an L1.
• It is possible to go straight to EB1C without the L1. Need to purchase an existing substantial company with revenues and employee base. I cannot be a small company or a startup.
• EB1C applicant needs to have experience running the business, unlike an EB5 investment.
• Money can be invested with the condition of visa or a green card approval. However, a lease may need to be secured to show the new office setup. A common work around maybe to utilize a coworking space, however the space needs to accommodate the business operations. Adjudicators look at the square footage of the lease space to ensure they can accommodate the employee count.

 

Other Employment-Based Immigration Green Card descriptions

• EB2: Skilled labor/employee
• EB3: Unskilled labor/employee
• EB4: Religious workers
• EB5: Investors

 

If you have questions about investment immigration, please reach out to Mona Shah & Associates.