Read the general business expansion overview
Hypothetical example: a Paradise electrical-contracting company forms a U.S. subsidiary and sends its estimating and projects manager to open it. A new-office L-1A petition is approved for one year and requires evidence that premises are secured, that the Paradise company can fund the office and the manager's salary, and that the U.S. operation will grow within the year to support a managerial role. The manager needs one continuous year with the Paradise company in the three years before filing, and the first year's record decides the extension.
Set up the subsidiary so it can lawfully do the work
In the hypothetical above, the subsidiary will bid on commercial electrical work in a state with contractor licensing. Before filing, form the subsidiary with the Paradise company as owner and document that ownership, sign a lease for premises adequate for a contracting office and small yard, open the U.S. bank account, obtain the employer identification number and start the state electrical-contractor licensing, which often requires a qualifying individual who may or may not be the manager. A subsidiary that cannot legally contract for the work it plans is not a credible new office. Attach the Paradise company's financial statements and a funding commitment to show it can support the office through the year, and a business plan with a staffing schedule showing when a foreman, electricians and an administrator will be hired.
Describe the manager's role as it will evolve
In the first months the manager will estimate, bid, hire and set up systems himself, and the petition should say so honestly while showing that by the end of the year he will be managing a foreman and an administrator and directing an essential function of the business. The officer accepts that a new office starts small; what the officer looks for is a realistic path to a managerial role and a company with the means to get there. The manager's qualifying year is proven by Paradise payroll and duties records, and any time he has already spent in the United States scouting the market should be listed, since it does not count toward the year. The L-2 spouse would be work-authorized incident to status, which matters when a family moves on a one-year approval.
Run the first year to produce the extension evidence
Keep a monthly file: payroll registers with hire dates, signed contracts and invoices, the licence once issued, the lease and any expansion, bank statements, and an organization chart updated as people join. Photograph the premises and the yard. File the extension before the first year ends with those records, the subsidiary's financial statements and a revised chart showing how the operation now supports primarily managerial or executive duties. Ending the year with the transferee still performing nearly all operational work creates serious extension risk, so hiring and contracted support should follow the credible plan rather than an invented quota. The Paradise company must also keep operating because both entities must remain active. Any extensions remain subject to the seven-year L-1A maximum.
What else is on your mind?
Does being a business owner or director qualify me for L-1A?What employment history should an L-1 transfer review cover?What makes a new-office L-1A case different?Why does an L-2 spouse’s admission record matter for work?Editorial source review: 2026-09-07. General preparation guidance, not an individual assessment.