L-1 Visa vs. E-2 Visa: How to Figure Out Which Visa is Right for You

People are often unsure on whether to apply for an L-1 visa or an E-2 visa.  Both of these visa options can be wonderful options for investors, entrepreneurs, and business professionals.  So, in this article, we are going to give you some helpful questions to ask yourself in order to help you decide which option is right for you. 

The Basics of the E-2 and L-1 Visa

The E-2 visa is an investor visa.  The way it works is that through the E-2 visa, someone can invest in a U.S. business by either starting a business from scratch or purchase an existing business.  Based on making that substantial investment, the person can apply for an E-2 visa to be able to live in the United States and direct and develop their business, as long as the business satisfies the E-2 visa requirements.   

The L-1 visa is also known as the intracompany transferee visa.  The way the L-1 visa works is it allows a non-U.S. company (a company outside of the United States) to transfer a certain employee to work for a related U.S. company.  In other words, there must be a company outside of the United States, and there must be a company inside of the United States. The two companies must have some type of qualifying relationship (such as parent/subsidiary, branch office, or affiliates). Through the L- 1 visa, an employee – an executive, a manager, or specialized knowledge worker – can be petitioned by the U.S. company to transfer from the foreign company to the U.S. company.

Now, with that intro, let’s get into the questions that will help you decide between these two visa options. 

Question One:  What’s My Country of Citizenship?

To start, you need to know your country of citizenship to see if you qualify for an E-2 visa.  The E-2 visa is not available to citizens of every single country.  The way the E-2 visa works is that it is based on a treaty with the U.S.  In order for you to qualify or be eligible to apply for an E-2 visa, you must be a citizen of a country that has an E-2 treaty with the United States. Many countries do have an E-2 treaty with the United States such as Germany, the United Kingdom, Pakistan, Jordan, Canada, Mexico, and the list goes on.  But, there are also a number of large countries that do not have any treaty with the United States, such as India and China. 

Thus, the very first question that you want to ask yourself is:  What’s my country of citizenship, and does my country of citizenship have a treaty with the United States?  Note, if your country of citizenship does not have a treaty with the U.S., all hope is not lost.  There are ways for you to potentially obtain the citizenship of a country that does have a treaty with the United States, such as Grenada.  There are a number of people from China and India who obtain citizenship from Grenada and then apply for the E-2 visa.

Question Two:  Is There a Non-U.S. Company That Satisfies the L-1 Visa Requirements?

The L-1 visa has some very specific requirements.  For one, there must be a foreign company that will transfer a qualifying employee to a related U.S. company.  If there is no foreign company, then an L-1 visa is not the right option for you.  In addition, if you are considering an L-1 visa, then you have to have worked for the non-U.S. company for one year, full-time, within the last three years before the L-1 petition is filed.  Your role in the company is also important with regard to the L-1 visa.  Specifically, you must have worked as either a manager, an executive, or a specialized knowledge worker. 

Another important point to keep in mind is that for the L-1 visa to be a viable option, the non-U.S. company must be a decently sized company.  If the company in question is a company consisting of one person and has low revenue, then the L-1 visa will likely not be a viable option.  USCIS wants to make sure that the non-U.S. company will continue to operate even when the L-1 visa beneficiary comes to the United States.  If the non-U.S. company is too small, USCIS may likely have concerns that the non-U.S. company will wind down operations once the L-1 visa beneficiary comes to the U.S. 

In sum, to be eligible for the L-1 visa, (i) there must be a foreign company; (ii) you must have worked with the foreign company for one year, in a full-time continuous employment capacity, within the last three years; and (iii) the foreign company cannot be too small, and understanding the broader benefits of the L-1 visa may help clarify how this classification compares to other options such as the E-2. Please note that this is not a comprehensive list of all of the L-1 visa requirements.

Another point to mention here is that the non-U.S. company has to have some sort of a qualifying relationship with the U.S. company.  Some examples of qualifying relationships are: 1) parent/subsidiary; 2) branch office; 3) affiliates. In short, there must be some sort of qualifying relationship between the two companies for the L-1 visa to be a potentially viable option.

Question Three:  Am I Planning on Investing Money into the U.S. Business?  How Much?

As we discussed, the E-2 visa is very much based on making an investment in a U.S. business, and the investment must be considered substantial.  Now the E-2 visa regulations do not necessarily specify what dollar amount is considered “substantial.”  So, technically there is no minimum investment amount.  Yet, in practice, we typically recommend that somebody should aim to invest at least $100,000 in their business or more.  While investments of less than $100,000 can qualify, investing at least $100,000 or more, gives you a better chance that your investment will be considered substantial.

How does this apply to your calculation about whether you want to pursue an L-1 visa or an E-2 visa?  If you are not planning on investing a substantial amount of money into the U.S. business, then you should know that the E-2 visa is probably not the best option for you.

Question Four:  What Are My Long-Term Goals in the U.S.?

If your goal is to become a lawful permanent resident (i.e., to eventually get your green card), then you need to understand that both the L-1 visa in the E-2 visa are nonimmigrant visas.  That means that both of them do not directly lead to a green card.  That said, both visas can allow you to eventually transition and convert from that visa category to a green card.

There are routes for people who are on an L-1 visa or an E-2 visa to eventually pursue a green card.  For L-1 visa holders, one common route is through a visa called the EB1C visa.  One reason for this is because the L-1 visa requirements are similar to the EB1C visa requirements.  

For the E-2 visa, one of the common routes to a green card is through the EB-5 visa.  EB-5 is an immigrant investor visa category that allows somebody to invest in a U.S. business, create jobs for U.S. workers, and on the basis of that investment and that job creation they could potentially qualify for their green card through the EB-5 classification.  One of the reasons why this is a popular option among E-2 investors is that if an investor decides to pursue an EB-5 visa, the amount of the investment that they’ve already invested into their business could potentially qualify towards their EB-5 investment if certain requirements are met.

Conclusion

You now have four questions that you can ask yourself that will help you better understand whether the E-2 visa or the L-1 visa is right for you.  My name is Michael Ashoori and I’m a U.S. immigration lawyer and the founder of Ashoori Law. As an immigration lawyer, I help families, professionals, investors, and entrepreneurs get visas, green cards, and citizenship to the United States.  If you have any questions, feel free to call, text, or send a WhatsApp to +1-818-741-1117 or you may request a free consultation by clicking this link.