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L-1 Visas for Small Companies: How Even Businesses with Few Employees Can Qualify

The L-1 visa is a popular choice for companies seeking to transfer employees from foreign offices to the U.S. But what about small businesses with only a handful of employees? Can a company with a small team still sponsor an L-1 visa for its executives, managers, or specialized employees? The answer is yes!

The Key Requirements for L-1 Visas

L-1 visas are issued to foreign employees of companies seeking to transfer to a U.S. branch, subsidiary, affiliate, or parent company. The two main types of L-1 visas are:

  • L-1A Visa: For executives and managers.
  • L-1B Visa: For employees with specialized knowledge.

The requirements for L-1 visas primarily focus on the applicant’s role within the organization, the nature of the business, and the relationship between the U.S. and foreign entities. Contrary to common misconceptions, the number of employees in a company does not automatically disqualify it from sponsoring an L-1 visa holder.

Can Small Businesses Qualify for L-1 Visas?

While many assume that L-1 visas are only for large corporations with a vast number of employees, the statute itself does not set a minimum employee number for a business to qualify. The main criterion for approval is whether the company’s organizational structure can support the managerial or executive role, or if the individual holds specialized knowledge that contributes to the business’s success.

In fact, several court cases have clarified that small companies, even those with only a few employees, can qualify for L-1 visa sponsorship. For example, VHV Jewelers, LLC v. Wolf (2021) highlighted that small companies are not automatically precluded from sponsoring an executive or manager based on their size. The court emphasized that the company’s organizational structure, its operations, and the duties of the individual play a more critical role in determining eligibility than the sheer number of employees.

Factors to Consider for Small Companies

When preparing an L-1 visa petition for a small business, the following factors should be taken into account:

  1. Company Structure: Small businesses can still qualify for an L-1 visa if they have a clear organizational hierarchy, even if it involves fewer employees. The key is demonstrating how the individual’s role is managerial or executive in nature, or involves specialized knowledge that is critical to the business’s operations.
  2. Role of the Employee: The applicant must meet the criteria for either a manager/executive or specialized knowledge worker. Even in small businesses, an individual’s position may involve significant decision-making authority or expertise that is crucial to the company’s goals.
  3. Nature of Business: USCIS will assess whether the company’s operations are substantial enough to support the individual’s role. Small businesses with international ties, such as a subsidiary or affiliate overseas, are especially well-suited for L-1 visa petitions. The company must prove it operates in a manner that requires skilled management or specialized knowledge.
  4. Documenting the Role: Small businesses must provide evidence that the employee is relieved from day-to-day operations and truly fulfills a managerial or executive role. For example, demonstrating that the employee oversees the company’s growth, manages key decisions, or directly interacts with senior executives of the parent company can help establish the case.
  5. Reasonable Needs of the Business: The business must show that its size and structure allow the employee to perform managerial duties, even if it involves managing a small team. As courts have pointed out, the needs of the organization can be considered on a case-by-case basis.

Conclusion

L-1 visas offer a pathway for international businesses of all sizes to bring talented professionals to the U.S. Small companies are not excluded from this process, and with the right documentation and legal arguments, they can successfully sponsor employees under the L-1A or L-1B categories. It’s essential to focus on the nature of the business, the employee’s role, and the company’s organizational structure to demonstrate that the L-1 visa is appropriate, regardless of the size of the company.

By understanding the flexibility of the L-1 visa program and leveraging the appropriate legal strategies, even small businesses can utilize this powerful tool to expand their workforce and bring essential talent to their U.S. operations.

Contact Information

If you or your family members have any questions about how immigration and nationality laws in the United States may affect you, or if you want to access additional information about immigration and nationality laws in the United States or Canada, please do not hesitate to contact the immigration and nationality lawyers at NPZ Law Group. You can reach us by emailing info@visaserve.com or by calling us at 201-670-0006 extension 104. We also invite you to visit our website at www.visaserve.com for more information. Contact us today.