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One of the most misunderstood concepts in the L-1 visa process is a simple word: operating.
Many foreign companies assume that once they register a U.S. entity, open a bank account, or sign a lease, the business is considered operational for immigration purposes.
In the L visa space, that is not the standard.
For USCIS, operating means the regular, systemic, and continuous provision of goods and/or services. It is not about formation documents. It is about actual business activity.
Understanding this distinction is critical, because it determines whether your case qualifies as an L-1A New Office petition or an L-1A Existing Business petition. And the strategy for each is very different.
What Is an L-1A New Office Petition?
An L-1A New Office petition applies when the U.S. company has been operating for less than one year.
The key word is operating, not formed or created.
If the company has not yet begun the regular and continuous provision of goods or services, or if it has been doing so for less than twelve months, USCIS treats the petition as a New Office case.
In these situations, the government does not have past performance to evaluate. Instead, the focus shifts heavily to the future.
USCIS wants to see that the company will:
Launch real operations quickly
Generate sufficient revenue
Hire staff within a defined timeline
Support a true executive or managerial role within the first year
Because the business is still in its early stages, the initial L-1A approval for a New Office is limited to one year.
That one-year mark becomes a critical checkpoint.
What USCIS Requires in an L-1A New Office Case
Since there is limited operating history, documentation must be forward-looking, structured, and credible.
A strong L-1A New Office petition typically includes:
A comprehensive business plan
This is not a generic document. It must outline the company’s services, target market, revenue projections, hiring plan, and growth strategy. USCIS relies heavily on this plan to determine whether the company can realistically support an executive or managerial position.
A clear hiring timeline
USCIS expects to see when and how employees will be added. The company must demonstrate that the L-1A beneficiary will primarily perform executive or managerial duties, not day-to-day operational tasks.
Evidence of secured office space
A physical location is required. Virtual offices are often scrutinized unless clearly justified. The space must be sufficient to support planned growth.
Proof of financial capability
The company must show it can fund operations and pay salaries during the initial phase.
At the extension stage, the burden increases. The company must demonstrate that the projections presented in the original business plan translated into actual growth, job creation, and an emerging organizational structure.
If the business fails to hire staff or remains too small, USCIS may determine that the beneficiary is acting as an employee rather than as an executive or manager.
What Is an L-1A Existing Business Petition?
An L-1A Existing Business petition applies when the U.S. company has been actively operating for at least one year.
Again, operating means regular, systemic, and continuous provision of goods and/or services.
In these cases, USCIS evaluates the company based on actual performance, not projections.
The agency will examine:
Current staffing levels
Revenue and financial statements
Organizational charts
Established managerial hierarchy
Evidence of ongoing commercial activity
Because there is an operating history to review, initial or extension approvals may be granted for up to three years.
While projections are still important, they are secondary to demonstrated operations.
The Strategic Difference Between New Office and Existing Business
The difference between an L-1A New Office and an Existing Business case is not just timing. It is evidentiary strategy.
In a New Office case, the business plan carries significant weight. USCIS is evaluating whether the company will become operational and capable of supporting an executive or managerial role.
In an Existing Business case, USCIS focuses on whether the company is already functioning at a level that justifies executive or managerial classification.
Both paths require careful planning. But New Office cases are particularly sensitive because the entire structure must be built to meet extension requirements from day one.
Why the Business Plan Matters in L-1A New Office Petitions
In our experience working in the business immigration sector, many L-1A denials stem from unrealistic growth projections or insufficient organizational development within the first year.
A properly structured L-1A business plan should:
Define how the company will provide goods or services on a regular basis
Present defensible revenue projections
Include a detailed hiring schedule
Demonstrate when the company will have sufficient staff to relieve the executive from operational duties
Align financial capacity with expansion plans
The goal is not simply to obtain the first-year approval. It is to build a roadmap that positions the company for a successful visa renewal.
Authority Comes From Understanding Both Business and Immigration
Business immigration is not just about forms and eligibility criteria. It requires a deep understanding of how companies grow, hire, and structure their operations.
Our work in the business immigration space focuses on bridging that gap. We help foreign companies structure L-1A New Office and Existing Business business plans with a clear operational strategy behind them. Designed specifically for USCIS review, our business plans are realistic and grounded in basic business principles, while also tailored to meet strict immigration standards.
Because in the L visa context, incorporation is not enough. Intent is not enough.
USCIS looks for operating businesses.
If you are preparing for an L-1A New Office petition or assessing whether your U.S. company qualifies as an Existing Business, understanding how USCIS defines “operating” is essential. A well-structured, immigration-compliant business plan built around that definition can provide the clarity and strategic foundation your legal team needs to move forward with confidence.
Contact us today to get started
The information provided in this blog is intended solely for informational purposes. While we strive to offer accurate and up-to-date content, it should not be considered legal advice. Immigration laws and regulations are subject to change, and individual circumstances can vary widely. For personalized guidance and legal advice regarding your specific immigration situation, we strongly recommend consulting with a qualified immigration attorney who can provide you with tailored assistance and ensure compliance with current laws and regulations.
Visa Business Plans is led by Marco Scanu, a certified coach from the University of Miami with a globally-based practice coaching Fortune 1000 company executives, entrepreneurs, as well as professionals in four different continents. Mr. Scanu advises clients on turnaround strategies and crisis management.
Mr. Scanu received a bachelor’s degree in Business Administration (Cum Laude) from the University of Florida and an MBA in Management from Bocconi University in Milan, Italy. Mr. Scanu was also a Visiting Scholar at Michigan State University under the prestigious H. Humphrey Fellowship (Fulbright program) with a focus on Entrepreneurship, Venture Capital, and high-growth enterprises.
At present, Mr. Scanu is the managing partner and CEO at Visa Business Plans, a Miami-based boutique consulting firm providing attorneys and investors with business planning services in the areas of U.S. and Canadian immigration, SBA loans, and others.
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