L-1A New Office Application: Planning the First Year Correctly

The L-1A new office route allows executive transfer for an eligible foreign entity to start a new operation in the United States. However, the subject of the first application is not only about opening a company. The US organization is expected to have the structure to support a true executive or senior executive role within a year; Initial approval is generally valid for a maximum of one year. ¹

Therefore, the main question of the new office file is "Can I establish a company in America?" but “Can this company turn into a real business where I will mainly manage within the planned period?” should be. A connection must be established between the documents of the first application and the results to be shown in the extension. ¹

What does it mean to be considered a new office?

An organization that has been doing business in the United States for less than a year may be considered a new office within the scope of the relevant definition. The date of establishment and the actual start of activity are not always the same. For a company that was established a long time ago but has not started commercial operations, the registry date alone should not be relied upon. ¹

The application must explain the date on which the goods or services have been provided. Preliminary preparation, bank account opening and customer research should be distinguished from regular business activity. This distinction is important for implementing new office rules. ¹

How is physical location evaluated?

A suitable place must be provided to accommodate the activities of the business. The needs of a warehouse, manufacturing floor, or professional services office are not the same. The suitability of the area for the proposed activity and the reality of the right of use are as important as the existence of the lease agreement. ¹

Shared office or different usage models should not be presented as a reason for automatic acceptance or rejection. The question is whether the particular location is adequate for the particular job. An address used only to receive mail does not meet the actual operating space requirement in every case.

What questions should the business plan answer?

It should be explained what product or service will be offered, how to reach the customer, how the startup capital will be used, and who will do the day-to-day work. The staff and external services envisaged must demonstrate genuine functioning that supports the manager's role. Overall market size data is not a substitute for this company's applicable plan. ¹

Numbers and tasks should describe the same scenario

For example, if the wage budget of a plan that envisages a team of six people does not cover this team, the document becomes weak in itself. If outsourcing is used, the relevant activity must actually be delegated and the control structure must be explained. This is an example evaluation method; It does not mean that the legislation imposes a requirement of six employees for every business.

Foreign company and manager's background

The new office L-1A documents the individual's required executive or executive experience and intercompany affiliation at the appropriate foreign entity. Establishing a new operation in the United States does not remove the foreign business history requirement. The financial and commercial situation of the foreign organization is also important in supporting the new operation. ¹

If the owner of the company has personally performed all production or service in the past, careful consideration should be given to why this role meets the manager standard. Past position cannot be replaced with a later title. ¹²

What records should be kept during the first year?

Actual sales and services, customer contracts, payments, financial statements, personnel records and manager's duties should be archived regularly. The documents must be able to show that the business has actually developed and the planned management role has been established. ¹

Planned and actual activity can be monitored in separate columns in the monthly internal control table. This is not a specific table required by legislation, but a recording method that reduces the possibility of inconsistent expressions later on. Reasons for delays as well as success should be recorded honestly.

What is different in extension?

While a future-oriented plan is important in the first file, the realized structure and activity come to the fore in the extension. The appropriate relationship, business status, personnel, financial information, and the individual's actual duties are presented again. Just keeping the company open for a year is not enough. ¹

If the expected growth has not occurred, the reasons and the actual tasks available should be explained. Writing new goals does not automatically compensate for the missing activity of the previous year. For RFE or extension evaluation, the actual situation at the application date is taken as basis. ¹²

How does it relate to the EB-1C schedule?

One year of activity in the United States is one of the conditions for the EB-1C; But it is not the only condition. Appropriate foreign executive experience, corporate affiliation, and U.S. executive role also required. The approach of "The first year has passed and the right to a Green Card has been created" is not correct. ³

While preparing the new office plan, commercial sustainability, L-1A extension and possible EB-1C application should be considered as separate control headings. This approach avoids the mistake of using the same documents as a substitute for different legal standards.