L-1 visa vs. E-2 visa: which one is right for you?

On this page we walk you through the questions to ask yourself to decide which of the two visa types is the better choice.

First, a quick recap of the basics:

The E-2 visa is an investor visa. It lets you invest in a US business, either by starting one from scratch or by buying an existing one. Based on this substantial investment, you can apply for an E-2 visa to live in the United States and run and grow your business, provided the business meets the E-2 requirements.

The L-1 visa is also known as the intracompany transferee visa. The L-1 lets a non-US company (a company outside the United States) transfer a specific employee to a related US company. In other words, there has to be one company outside the United States and one inside it, and the two must be related in some way (for example parent and subsidiary, a branch, or affiliates). With the L-1 visa, the US company petitions for an employee (an executive, a manager or a worker with specialized knowledge) to move from the foreign company to the US company.

Now to the questions that will help you choose between these two visa options.

1Question 1: Which country am I a citizen of?

First, you need to know which citizenship you hold to find out whether you qualify for an E-2 visa. The E-2 isn't available to citizens of every country, because it is based on a treaty with the US. To qualify for or apply for an E-2, you must be a citizen of a country that has an E-2 treaty with the United States. Many countries do, such as Germany, the United Kingdom, Pakistan, Jordan, Canada, Mexico and others. But a number of large countries have no treaty with the United States, including India and China.

So the very first question to ask yourself is: which country am I a citizen of, and does it have a treaty with the United States? If your country has no treaty with the US, not all hope is lost. There are ways to obtain citizenship of a treaty country, such as Grenada. Quite a few people from China and India obtain Grenadian citizenship and then apply for the E-2 visa.

2Question 2: Is there a non-US company that meets the L-1 requirements?

The L-1 visa has some very specific requirements. First, there has to be a foreign company that sends a qualified employee to an affiliated US company. If there is no foreign company, an L-1 visa is not the right option for you. If you are considering an L-1 visa, you must also have worked for the foreign company full-time for one year within the three years before the L-1 petition is filed. Your role in the company matters for the L-1 visa too: you must have worked as a manager, an executive or a specialized knowledge employee.

Another key point: the L-1 only works if the non-US company is of a reasonable size. If it's a one-person business with low revenue, the L-1 will likely not be an option. USCIS wants to be sure the non-US company will keep operating once the L-1 visa holder comes to the United States. If the non-US company is too small, USCIS will likely worry that it will shut down as soon as the L-1 beneficiary moves to the US.

In short, you may qualify for the L-1 visa if (i) there is a foreign company, (ii) you have worked for it full time for one continuous year within the last three years, and (iii) the foreign company isn't too small. Please note that this is not a complete list of all L-1 requirements.

One more point worth mentioning: the non-US company must have a qualifying relationship with the US company. Examples of qualifying relationships include: 1) parent/subsidiary; 2) branch; 3) affiliate. Simply put, some kind of qualifying relationship between the two companies must exist for the L-1 to be a potentially viable option.

3Question 3: Do I plan to invest money in the US company? How much?

As discussed, the E-2 visa is based primarily on an investment in a US business, and that investment must be considered substantial. The E-2 rules don't set a specific dollar amount that counts as "substantial", so technically there is no minimum investment. In practice, though, we usually recommend investing at least $100,000 or more in your business. Investments below $100,000 can qualify too, but investing at least $100,000 or more gives you a better chance of your investment being considered substantial.

How does this affect your choice between an L-1 and an E-2? If you don't plan to invest a substantial amount in the US business, the E-2 is probably not your best option.

4Question 4: What are my long-term goals in the United States?

If your goal is to settle in the US permanently (that is, to get a green card eventually), you should know that both the L-1 and the E-2 are nonimmigrant visas. Neither leads directly to a green card. Both, however, can allow you to move from that visa category to a green card.

There are paths for L-1 and E-2 visa holders to eventually get a green card. For L-1 holders, a common route is the EB-1C visa, partly because the L-1 requirements are similar to those of the EB-1C.

For E-2 holders, one of the most common routes to a green card is the EB-5 visa. EB-5 is an immigrant investor category: you invest in a US business, create jobs for US workers and, based on that investment and job creation, may qualify for a green card under the EB-5 classification. One reason this route is so popular with E-2 investors is that someone who opts for an EB-5 may be able to count the amount already invested in their business toward their EB-5 investment, if certain conditions are met.

5What this means for you

You now have four questions to ask yourself that will help you see whether the E-2 or the L-1 visa is right for you. For all the differences in detail, see our page L-1 visa vs. E-2 visa: the key differences; for more on both visas, visit the E-2 investor visa overview and our L-1 visa page. To get answers to your own questions about the E-2 and L-1 visas, the best step is to book a consultation.

In short

• The E-2 requires citizenship of an E-2 treaty country; the L-1 is open to all nationalities.
• The L-1 requires a related company abroad that isn't too small, plus one year of full-time work there within the last three years as a manager, executive or specialist.
• The E-2 rests on a substantial investment; if you don't want to invest a sizable amount, the E-2 isn't a good fit.
• Neither leads directly to a green card: from the L-1 the route is often the EB-1C, from the E-2 frequently the EB-5.

How we help you

• Visa RoadmapIn writing: which visa fits you and your family, prepared with the immigration attorney on the firm's team.
• Visa Roadmap for Company FormationFormation and visa in one plan, so the company carries the visa.
• Form a CorporationThe US corporation (Inc) for growth, investors and your visa.
• Visa and Green Card ConsultationWhich route to the USA fits you, settled in one conversation.