Frequently Asked Questions

Common Questions about Establishing a U.S. Operation

1. L-1 Visas. The L-1 visa facilitates the transfer of non-U.S. nationals from qualifying affiliates or parent companies abroad to establish qualifying operations in the United States for periods ranging from five to seven years. The L-1 visa category can also be used in limited circumstances to transfer staff from abroad to qualifying “new” offices in the United States. L-1 visas enable specialized knowledge employees, managers and executives of a non-U.S. company or operation abroad to transfer to the United States to be employed by the U.S. parent, subsidiary, branch or affiliate of the non-U.S. company or operation. To qualify for L-1 status, the employee being transferred must have been continuously employed by the foreign company abroad for at least one year within the previous three years. L-1 visas are typically issued at a U.S. Consulate abroad after a petition approval from the U.S. Citizenship and Immigration Services (USCIS) in the United States. Blanket L-1 procedures can expedite the process and lower costs by permitting direct filings with the U.S. Consulates. Spouses of L-1 visa holders receive L-2 visas and can work while in such status.
2. E-1 and E-2 Visas (Treaty Trader and Investor Visas). The E visa category is often used by persons seeking to enter the United States to establish a new operation because the application process is initiated and completed, in many cases on an expedited basis, at a U.S. Consulate abroad and because no pre-approval from the USCIS is required. An E visa permits the recipient to enter the United States for renewable incremental periods of between one and two years per entry under the provisions of a treaty between the United States and the foreign state of which he or she is a national: (1) to trade principally between the United States and the foreign state (E-1); or (2) to develop and direct the operations of an enterprise in which the person or the foreign employer has invested or is actively in the process of investing a substantial amount of capital (E-2). Foreign nationals may be classified as treaty traders or investors if they have the same foreign nationality as the owners of the U.S. entity and are engaged in an executive or supervisory capacity, or have special qualifications essential to the enterprise. The spouse of an E-1 or E-2 visa holder can obtain work authorization.
3. H-1B Visas (Professional Workers and Workers in Specialty Occupations). The H-1B visa category is frequently used to enable persons to enter the United States to be employed in professional or specialty occupations for periods of up to six years. Unlike with the L-1 visa, no qualifying relationship need be established between the U.S. employer and the entity or operation abroad at which the non-U.S. national may be employed. To qualify for an H-1B visa, the beneficiary must have a U.S. bachelor’s degree, a foreign equivalent or equivalent qualifying experience in a specific area of study, and be coming to the United States to perform a position requiring a bachelor’s degree in that area. The spouse of an H-1B receives an H-4 visa and cannot work while in such status.
4. Jurisdiction of Incorporation. Corporations and limited liability companies can be formed under the laws of all 50 states. Most corporations are formed under Delaware law due to low franchise tax and laws favorable to management. A party can form a corporation under Delaware law but establish its office and conduct business in other locations.
5. Qualification. If a corporation is formed in one jurisdiction (e.g., Delaware) and has offices in another location (e.g., New York) the corporation must file a short registration in the jurisdiction where it conducts business (called "Qualification to Conduct Business").
6. More Complex Operations in the United States. Business operations can be expanded in the United States through a variety of means, including affiliated corporations (e.g., a second corporation in the United States owned by the foreign parent company), a second-tier subsidiary (a second U.S. corporation owned by the first-tier U.S. subsidiary) or similar arrangements.

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