L-1 Visa Benefits: a Complete L1A vs L1B Visa Guide (2024)

If you are an employer who has an active office in the U.S. or wants to establish one, the L-1 visa may have the benefits you need to send experienced high-level employees to the U.S. to grow your business. However, like with many other temporary work visas, it has its advantages and disadvantages that may help or hinder your case. Read on to learn the L1a and L1b visa requirements as well as how the benefits apply to your business.

Difference Between L-1A vs L-1B

There are a number of key differences that make the L-1A and L-1B very distinct visas. The L-1A might be better if you are seeking a longer-term validity period (up to seven years with extensions) and are able to meet the eligibility criteria. The L-1B may be more suitable if you don’t necessarily work in a managerial, executive or other high-level capacity but have worked for the foreign company for at least one continuous year within the last three years and have specialized knowledge that sets you apart from your peers.

Purpose: The L-1A is for intracompany transferees who have a managerial or executive position in the company (including those who oversee the management of the organization) while the L-1B is for intracompany transferees who have specialized knowledge of the company’s processes, products, services and procedures.

Qualifications: In order to qualify for an L-1A visa, the employee must have worked for the foreign company for a least one continuous year out of the last three before the application was filed (in a managerial, executive or other high-level capacity). The qualifications for an L-1B are similar to the L-1A, in that the employee must have worked for the foreign company for a least one continuous year out of the last three before the application was filed.

Validity Period: L-1A visa holders are granted a stay up to three years in the U.S. with extensions possible, totaling a maximum stay of seven years. The duration for the L-1B visa is a stay of up to three years in the U.S. with extensions possible, totaling a maximum stay of five years, so slightly shorter.

L-1 Visa Benefits: a Complete L1A vs L1B Visa Guide (1)

As you can see there are clear similarities and differences between the two visa routes. Both require a qualifying relationship with the foreign company and the U.S. company. To learn which option is better for you it’s recommended to schedule a consultation with a VisaNation Law Group attorney.

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L-1 Visa Benefits for Foreign Workers

The L-1 visa is broken down into two subcategories: the L-1A for managers and executives, and the L-1B for employees with specialized knowledge. Each has its own requirements and duration of stay. See the section below comparing the difference between L1a and L1b.

When comparing these L-1 visas with many of the other work visa classifications, you will find that, depending on your immigration situation, it has many benefits that the others do not.

Relatively Low Requirements

There are many work visas available to foreign professionals who wish to be employed in the U.S. Many of them have very steep requirements that are difficult to fulfill.

For example, the O-1 visa requires applicants to show their extraordinary ability through international awards or a substantial salary. The TN visa is only available to Canadians and Mexicans. The E-2 visa requires a substantial investment in a U.S. enterprise.

The L-1 visa, however, only requires you to be a manager, executive, or specialized employee in a multinational company in order to be qualified. This opens up the door for many people who are otherwise ineligible for other work visas.

No Job Offer Required

One of the most difficult aspects of acquiring an H-1B, J-1, or TN visa is finding an entity that is willing to sponsor you for the visa. If you are a qualified L-1 applicant, then you are already employed with a U.S. company that will sponsor you.

No Annual Limits

Typically, the L-1 visa is compared to the H-1B on account of their similarities. However, they differ largely here as there is a strict annual cap on how many H-1B petitions are approved. Each year, a small number of petitions are randomly selected from the pool of submitted petitions, making it very difficult to obtain an H-1B if you are subject to this lottery.

On the other hand, there are no limits to how many L-1 visas are approved each year. This means that your petition will not be rejected due to the fact that there are no more available visas.

Period of Stay/ L-1B Visa Duration

For the L-1A visa, holders will be granted an initial three years of stay in the U.S. They can then extend their stay to a maximum of seven years, this surpasses the H-1B’s maximum of six years and the J-1’s maximum of five years.

However, the L-1B visa can only be extended to a maximum of five years, making its period of stay a disadvantage when compared to other work visas.

Educational Requirements

One of the greatest L-1 visa benefits is the fact that you do not need a degree to qualify. This is a large advantage over the H-1B, though there are some other visas that do not necessarily require an education. These include the O-1, E-2, TN, and J-1 visa classifications.

Spouses and Dependents

If you are in the U.S. on L-1 status, you will be able to bring your spouse and children along with you through the L2 visa and the validity period will be the same as that of the L-1 visa holder. Also, if your spouse qualifies for an Employment Authorization Document, they will be able to work in the U.S. as well. This is a great L-1 benefit because it allows your spouse to make supplementary income to help support the family if necessary. Only spouses can work on L-2, not children. Parents of L1 visa holders are not eligible for the L2 visa, unfortunately.

Check out this guide on the L-2 Visa Process for Dependents.

Dual Intent

Like several other nonimmigrant visas, the L-1 is considered by the USCIS to be “dual intent”, meaning that L-1 holders are able to pursue lawful permanent resident status during their stay. This is in contrast to work visas such as the J-1 and TN visa classificationsthrough which pursuing a green card would violate your status and possibly incur consequences with the USCIS.

Here’s a recap of what you can apply for as an L visa holder while physically in the U.S.:

  • Labor Certification Application
  • Immigrant visa application
  • Adjustment of status application
  • Application for H-1B visa or L visa extension

It really is a tremendous benefit to be able to apply for permanent residency (while in the U.S. on L1) without facing negative repercussions. Moreover, one advantage over the H-1B is that employers don’t need to prove that the wage meets the prevailing wage of similar domestic workers.

How the L-1 Visa Benefits Employers

Applicants are not the only ones who can take advantage of the L-1 visa benefits. Employers have much to gain from choosing to use this visa over others.

Blanket Petition

The first and perhaps the greatest L-1 benefit that employers can enjoy is the fact that the L-1 has a blanket visa option for companies that have combined U.S. revenue of at least $25 million or have a minimum of 1,000 employees working in the U.S.

An L-1 blanket petition allows employers to file a single petition for multiple employees, meaning that you will not be required to file and pay for a petition for each employee. For large companies that need to get many employees over to the U.S. with short notice, the blanket petition is an invaluable advantage.

New Offices

Another equally important L-1 benefit is the fact that if a multinational employer does not currently have an office or branch in the U.S., an L-1 holder can be sent in order to establish a new one.

While there are different limitations attached to this process, it is extremely advantageous to be able to establish a new office in the U.S. Employer will be able to send L-1 holders to the new office once it has been established.

Labor Condition Application Requirement

Even though it is not necessarily arduous or an expensive process, obtaining a Labor Condition Application (LCA) for each H-1B or E3 employee can add up in both time and money. Fortunately, the L-1 does not require that you obtain this certification when petitioning for an employee transfer.

Wondering what your L1 status is? Give us a call to schedule a consultation!

L1B vs L1A – Visa Requirements

The L-1A visa is designed for intracompany transferees who work in managerial or executive positions (company outside the U.S.) while the L-1B is for intracompany transferees who work in positions requiring specialized knowledge.

L1A Visa Requirements

In order to meet the L1a requirements you must:

  • Have been working for a qualifying company overseas for one continuous year within the past three years immediately before your admission to the U.S.
  • Have an interest in coming to the U.S. to provide your skills in a managerial or executive capacity for a branch of the same employer or a qualifying organization

L1B Visa Requirements

In order to qualify for an L-1B classification you must:

  • Have been working for a qualifying organization overseas for one continuous year within the past three years immediately before your admission to the U.S.
  • Have an interest in entering the U.S. to provide services in a specialized knowledge capacity to a branch of the same employer or one of its qualifying organizations

Have questions about the L1B or L1A visa requirements? Have your case handled by experienced immigration professionals!

What defines specialized knowledge?

“Specialized knowledge either means knowledge you have about the petitioning organization’s product, service, research, equipment, techniques, management, or other interests and its application in international markets, or an advanced level of knowledge or expertise in the organization’s processes and procedures. (See 8 CFR 214.2(l)(1)(ii)(D).)”

L-1 Visa Restrictions and Disadvantages

Unfortunately, all of these L-1 benefits do not come without some drawbacks. Even though the L-1 can be relatively easy to obtain, those same advantages can be considered disadvantages if you are not already employed.

Must Already Be Employed

While this was counted as an advantage earlier, it could easily be a disadvantage depending on your situation. If you are not currently employed with a multinational company that is large enough to have or plant an office in the U.S., then this could be a very difficult hurdle to surpass. This is especially true since you must work at that company for one full year in the three years that precede your entry into the U.S.

No Extension Past the Maximum Period of Stay

This is one of the biggest L-1 visa restrictions. Even though the L-1A allows for holders to work for up to seven years, this limit cannot be exceeded for any reason. For other visas, such as the H-1B or J-1, an extension can be acquired past the usual maximum. There are even some visas like the O-1 and E-2 that allow for unlimited extensions. However, unfortunately, L-1 holders are only granted one extension after their initial three years. After that, they must either transfer their status or apply for a new L-1 visa.

Limited Types of Companies

While other visas such as the H-1B allow you to be employed with any U.S. employer, the company sponsoring you for an L-1 visa must be a multinational company that either has or is planning to have a branch, subsidiary, or office in the U.S.

This rule usually excludes businesses that are too small to have international branches and small business owners. Make sure to speak with your immigration attorney to determine if your business qualifies for this visa.

Find Out How A Small Business Can Sponsor a Green Card

Entrepreneurship

Another L-1 visa restriction is the fact that visa holders are not permitted to start their own businesses while on L-1 status. In order to maintain your status, you must only work for your sponsoring employer and no one else, meaning that you also cannot work part-time for another employer simultaneously. This is in contrast to the H-1B visa, which allows both entrepreneurship and part-time employment.

Procedure to File

In order to get the process started, your employer should:

  1. Review and complete Form I-129, Petition for a Nonimmigrant Worker
  2. Pay applicable filing fees
  3. Submit the required evidence and supporting documentation (this includes a duplicate copy of Form I-129 and all supporting documentation (even if they are filing Form I-129 to seek a change of status (COS) or extension of stay (EOS) on your behalf).

After USCIS receives your Form I-129 and they process it, you will receive a receipt notice confirming they received it, a biometric service notice, a notice to appear for an interview (if necessary) and then a notice of their decision. You can check the status of your case using the USCIS online account.

How We Can Help

Now that you are aware of the L1A and L1B visa requirements as well as all the advantages and disadvantages that the L-1 visa has compared to other work visas, you may still be wondering if it is the right choice for your case. Retaining the help of a qualified immigration attorney can help you decide how you want to proceed.

VisaNation Law Group’s L-1 attorneys are experts in helping employers petition as well as helping beneficiaries go through the L-1 process. We will guide you through each step and make sure that your petition has the best chance for approval by making sure that all issues and errors are addressed.

To get in touch, you can complete this simple contact form and schedule a consultation today.

L-1 Visa Benefits: a Complete L1A vs L1B Visa Guide (2024)

FAQs

L-1 Visa Benefits: a Complete L1A vs L1B Visa Guide? ›

Validity Period: L-1A visa holders are granted a stay up to three years in the U.S. with extensions possible, totaling a maximum stay of seven years. The duration for the L-1B visa is a stay of up to three years in the U.S. with extensions possible, totaling a maximum stay of five years, so slightly shorter.

Which visa is better, L1A or L1B? ›

While the L1A and L1B visas are similar, they have some important differences. The L1A visa is best for executives and management professionals. The L1B visa is best for professionals who have special knowledge relating to the organization they work for.

What is the disadvantage of a L1B visa? ›

Drawbacks and restrictions of L-1B visa

Perhaps the biggest drawback of the L-1B is the five-year maximum stay period allowed to visa holders. Fortunately, you can still apply for a change of visa status before your current L-1B status expires.

What are the benefits of L1B visa? ›

Advantages of an L1B Visa
  • No Labor Certification is Required. ...
  • Temporary Work Authorization. ...
  • Flexibility. ...
  • Dependents Can Accompany. ...
  • Way to Permanent Residency.

What is the maximum stay for L1B to l1a? ›

The H-1B, L-1A, and L-1B classifications have six-year, seven-year, and five-year maximum periods of stay in the United States, respectively. Any time an employee in L-1 status spends in the United States will count against available H-1B time if the employee were to change to H-1B status in the future, and vice versa.

Is L1A to green card faster? ›

Those that qualify for an L-1A typically will also be able to qualify for the EB-1c. This means that you may be able to obtain a green card relatively quickly (3-4 years) instead of being subject to the long waiting times associated with EB-2 and EB-3 filings.

Can you get green card from L1B? ›

Yes, L1B visa holders can apply for a green card. The most common paths are through the EB-2 and EB-3 employment-based preference categories, which require employer sponsorship.

Can I buy a house on L1B visa? ›

Eligibility and Visa Types: Nonimmigrant visa holders, including those on B1/B2, TN, L1, F1, and H1B visas, are eligible to purchase houses in the U.S. The absence of explicit restrictions allows foreign nationals to invest in real estate.

Do L1B visa holders pay taxes? ›

The L-1 visa (work visa) taxpayers will pay the U.S. tax based on the source of income and the number of days stayed in the U.S. If you are not meeting Substantial Presence Test (183 days test), you will have to file a Nonresident Tax Return, Form 1040NR.

What is the success rate of L1B visa? ›

The denial rate for L-1B petitions declined to 21.3% in the third quarter of FY 2021 and 20.7% in the fourth quarter of FY 2021. In the first quarter of FY 2021, the L-1B denial rate was 32.7% and 33.3% in the second quarter.

What happens if you lose job on L1B? ›

Generally, you would be required to leave the United States if you lost your job with your sponsoring employer. You may be able to apply for a change of status to stay in the country as a visitor or find another employer willing to petition for a work visa.

How soon can I apply for a green card after L1A? ›

Persons who come to the U.S. as L1A workers can usually apply for an EB-1C green card after being in the U.S. for one year on the L1A status, provided they are not also an owner of the business.

Can I leave and reenter the US on a L1 visa? ›

Advance parole, also known as a travel document, enables individuals with pending adjustment of status applications to depart the United States for temporary travel and return without abandoning their application. Someone with a valid L or H stamp is not required to obtain advance parole before traveling.

Is L1A better or L1B? ›

Difference Between L-1A vs L-1B

There are a number of key differences that make the L-1A and L-1B very distinct visas. The L-1A might be better if you are seeking a longer-term validity period (up to seven years with extensions) and are able to meet the eligibility criteria.

What happens after 5 years of L1B? ›

The L1B employment cannot be extended beyond the 5 year limit with an approved I-140 as can H1B petitions. Generally, the L-1 would switch to H1B for beyond the 6th year H1B extesnions. There is a maximum limit of five years for L-1B. You will need to find a different visa category past five years.

What is the salary of L1B visa holder in the US? ›

According to the Department of Homeland Security (DHS), the median wage for an H1B worker in 2021 was about $108,000. While you can earn a minimum salary of up to USD 60,000 on an L1 visa.

What is the success rate of L1A visa? ›

In 2021, the L-1 Visa had about a 94% approval rating. However, there was still close to a 6% denial reason. While the odds are in your favor, there are still some factors that could result in your visa denial.

Can I change my status from L1B to L1A? ›

As long as the applicant meets the established requirements, L-1B visa holders can adjust their status to the L-1A nonimmigrant classification. For example, if an L-1B employee is promoted to a position of manager or executive, it is possible to apply for an adjustment of status.

Is L1A a good visa? ›

The L1 visa is a powerful immigration option for people looking to live and work in the USA. The L1 visa allows foreign businesses to transfer certain employees to a US branch, parent, subsidiary, or affiliate company.

Can L1B be extended beyond 5 years? ›

Changing Status

For specialized knowledge employees in L-1B status, one way to extend their stay beyond 5 years is evaluating whether they now qualify for L-1A classification.

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