Establishing a new office in the U.S. and transferring key personnel under the L-1 visa can be an exciting opportunity, but it requires careful planning and precise execution at every stage.
To help you avoid costly mistakes, we’re sharing two of the most common pitfalls we’ve seen companies face with L-1 New Office petitions, and Stay Ahead.
Top 2 L-1 New Office Pitfalls & How to Avoid Them
1.Common Pitfall: Is Your Business Plan Going to Dazzle USCIS?
There are many steps involved for companies establishing a new office in the U.S. – incorporation, obtaining a tax ID number, opening a bank account, leasing office space, and more.
But when it’s time to file your L-1 petition, a well-thought-out and complete Business Plan becomes one of the most critical pieces of evidence. Submitting a vague or incomplete Business Plan can significantly hurt your case.
How to Stay Ahead:
A Business Plan serves as your sales pitch to USCIS. It must communicate your vision for your U.S. operation and lay out a credible path to success. Here’s what a strong Business Plan should include:
a. Concrete, Realistic Expansion Plans
- While a Business Plan can be aspirational, it should be conservative and grounded in reality.
- Include details from actual market research already conducted.
b. Detailed Financial Projections (5 years)
- Financials should reflect expected income and expenditures based on real-world benchmarks.
- We highly recommend working with a certified accountant to develop this section.
c. Realistic Personnel Planning (5 years)
- Clearly outline hiring timelines, roles, and projected salaries.
- If transferring a Manager or Executive, the plan should demonstrate how this individual will be relieved of non-managerial duties by the end of Year 1.
While a weak Business Plan alone shouldn’t cause a denial, a well-prepared one can significantly improve your approval chances.
Example Scenario: A European startup submitted a New Office L-1 petition with a one-page business plan that lacked financial and staffing details. USCIS issued a Request for Evidence (RFE) questioning the company’s viability, and the petition was ultimately denied.
2.Common Pitfall: How Early is Too Early to Get Physical Office Space?
You’re in the process of establishing a new office in the U.S., which will be a parent, subsidiary or affiliate of your company abroad, with plans of transferring a manager, executive or specialized knowledge professional to the U.S. on L-1. You’ve incorporated and opened a bank account, the next logical step is getting yourself an office or facilities for the new company, right? Wrong.
While getting sufficient, physical space is required for the L-1 New Office petition, getting it too soon may be a waste of money and resources.
How to Stay Ahead:
Obtaining sufficient, physical space for your New Office is a prerequisite for obtaining the L-1 New Office approval. Without sufficient physical space, USCIS will not approve an L-1 petition. However, there are several things to consider when obtaining the required space, including:
a. What kind of physical space do you need?
- A warehouse, an executive office, a storefront, or all of the above?
b. How much space do you need?
- If it’s an office, do you need an office big enough for 3 people or do you need a suite of offices?
- If it’s a warehouse, do you need 100 sq ft of space or 1000 sq ft of space?
c. What are your company’s immediate needs vs. long-term needs in terms of physical space?
- Rushing to obtain a space before having a clear idea of what type of space or spaces your company will require will likely result in your company paying for a space or spaces that you don’t need, which is money down the drain!
Once you’ve drawn up a Business Plan and you are almost ready to submit an L-1, determine exactly what is required for you to successfully start your business and get your L-1 petition approved. Maybe you only need a small office suite initially with the option of expanding. Or you need a medium-sized warehouse with an attached office space where you can obtain more space later.
Lease the space no earlier than you actually need it to begin doing business or when you’re ready to file the L-1 petition, whichever is sooner. This way you are not paying for a space that may sit empty for months while you wait for the L-1 petition approval.
Example Scenario: A client approached VisaPro for assistance with obtaining an L-1 visa. They had already leased 2,500 sq ft office space when they registered the company 6 months earlier. By the time they came to us, the warehouse remained unused, and the company was losing thousands of dollars on the lease. What they hadn’t realized was that a clear understanding of immigration regulations, and perfectly timing key steps such as company registration, lease execution, bank account setup, and filing the L-1 petition, could have significantly reduced costs and increased their chances of success.
What Should You Do?
Launching a U.S. office is a strategic milestone. But without proper guidance, even small missteps in your L-1 New Office petition can lead to denial or delays.
At VisaPro, we’ve helped hundreds of international companies from over 45 countries establish successful U.S. operations. Our 22+ years of experience and near 100% success rate in L-1 filings show our commitment to excellence.
📞 Call us at (202) 787-1944 or schedule a Free Assessment with an experienced immigration attorney and develop a custom L-1 visa strategy for your company https://www.visapro.com/service-options/visa-assessment/.
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Let’s make your U.S. expansion a success – right from the start.
William Pura, Canada
