L1 Visa vs. E2 Visa
Key Differences for Entrepreneurs and Investors
If you’re an entrepreneur, investor, or high-level executive looking to live and work in the U.S., you’ve likely come across the L1 and E2 visas. Both are excellent options but serve different purposes and have unique requirements. This blog will break down the key differences between the two to help you determine which one is the best fit for you.
Understanding the Basics: L1 Visa vs. E2 Visa
What is the L1 Visa?
The L1 visa is designed for multinational companies looking to transfer employees to a U.S. office. To qualify, the applicant must:
- Work for a foreign company that has a qualifying relationship (parent, subsidiary, branch, or affiliate) with a U.S. company.
- Have been employed full-time by the foreign company for at least one year within the last three years.
- Be transferring to the U.S. in a managerial, executive, or specialized knowledge role.
What is the E2 Visa?
The E2 visa is ideal for individuals looking to invest in or start a business in the U.S. To qualify, you must:
- Be a citizen of an E2 treaty country.
- Intend to leave the U.S. once your visa expires.
- Make a substantial investment in a U.S. business.
- Ensure your business is active, for-profit, and not marginal.
- Direct and develop the business yourself.
- Have legally sourced investment funds.
Key Differences Between the L1 and E2 Visas
1. Non-Immigrant Status
Both the L1 and E2 visas are non-immigrant visas, meaning they do not directly lead to permanent residency (a green card). However, there are ways to transition from both visas to a green card, which we will discuss later.
2. Job-Based vs. Investment-Based
The primary difference between the two visas is their focus:
- L1 Visa: Focuses on the job role. Applicants must be employed in managerial, executive, or specialized knowledge positions.
- E2 Visa: Focuses on investment. Applicants must invest in and actively manage a business in the U.S.
3. Nationality Restrictions
- L1 Visa: Available to applicants of all nationalities.
- E2 Visa: Only available to nationals of countries that have an E2 treaty with the U.S. Major countries like China, India, Russia, and Brazil are not eligible.
4. Work Authorization
- L1 Visa Holders: Can only work for the U.S. company sponsoring their visa.
- E2 Visa Holders: Must actively run their E2 business and cannot work for another employer.
5. Work Authorization for Spouses
Both visas allow spouses to work in the U.S.
- L1 Visa Spouses: Can apply for an L2 visa, which allows work authorization.
- E2 Visa Spouses: Can obtain work authorization as dependents of the E2 investor.
6. Visa Duration and Renewals
L1 Visa:
- For new offices, the initial stay is one year.
- For existing offices, the stay is up to three years.
- Maximum duration: 7 years for L1A (managers/executives), 5 years for L1B (specialized knowledge employees).
E2 Visa:
- The duration varies by treaty country (1-5 years).
- Can be renewed indefinitely as long as the business remains operational.
- Each entry to the U.S. grants a stay of up to two years.
7. Transitioning to a Green Card
While neither visa directly leads to a green card, there are pathways:
- L1 Visa: Many L1A holders transition to a green card through the EB1C category (multinational executives and managers) or employer sponsorship.
- E2 Visa: Can transition through an EB5 investment visa (minimum $800,000 investment) or employer sponsorship.
8. New vs. Existing Businesses
Both visas allow applications for new or existing businesses, but there are specific rules:
- L1 Visa: Companies under a year old qualify for a “new office” L1 visa.
- E2 Visa: Applicants can either start a new business or invest in an existing one.
Conclusion
Both the L1 and E2 visas offer great opportunities for business professionals seeking to work in the U.S. However, the right choice depends on your specific situation:
- If you are a manager, executive, or specialized knowledge employee of a multinational company, the L1 visa is likely the better option.
- If you are an entrepreneur or investor from a treaty country looking to establish or invest in a business, the E2 visa is a strong choice.
What to Do If You Find Yourself in This Situation?
Discover the best way to connect with Green Card Guys Law Group based on your specific needs and goals. Choose from 3 tailored options to get started.
English 
Español 