Understanding Qualifying Relationships

L-1 qualifying relationship forms the foundation of every intracompany transfer petition. USCIS requires demonstrating the US employer maintains parent, subsidiary, branch, or affiliate status with the foreign employer. Both entities must actively do business, meaning regular, systematic, continuous provision of goods or services.

Simply maintaining office presence doesn't satisfy requirements. Real operational activity matters. The relationship must exist when filing and continue throughout the beneficiary's L-1 stay. Corporate changes like mergers, acquisitions, or ownership transfers require amended petitions as changes may eliminate qualifying relationships.

L-1 parent subsidiary proof or other relationship types need clear documentation. Contractual relationships like franchising, licensing, or service agreements don't establish qualifying relationships. Less than 50-50 joint ventures fail. Charter membership arrangements don't qualify.

The relationship needn't have existed during the one year abroad employment period. New relationships formed after the beneficiary worked abroad still qualify if properly documented when filing the petition.

L-1 corporate structure documents must prove two elements. First, ownership showing legal right of possession. Second, control demonstrating right and authority to direct management and operations. Ownership alone insufficient without control.

Beyond Border evaluates corporate structures between US and foreign entities, identifies qualifying relationship types, and develops comprehensive documentation strategies.

Parent and Subsidiary Relationships

L-1 parent subsidiary proof requires showing one firm owns another qualifying as subsidiary. Parents own subsidiaries when owning more than 50 percent directly or indirectly and controlling the entity. Either US entity or foreign entity can be parent with the other as subsidiary.

Ownership thresholds matter. Owning over 50 percent creates presumption of control. Exactly 50 percent ownership works in 50-50 joint ventures when parent has equal control and veto power over entity decisions. Owning less than 50 percent may still qualify if demonstrating de facto control despite minority ownership.

Control means right and authority directing management and operations. Normally majority share ownership establishes control. However, USCIS may examine additional factors including voting rights, board composition, operational decision authority, or management appointment powers.

L-1 ownership verification documents include stock certificates showing share distribution. Provide shareholder agreements outlining voting rights, control provisions, and management authority. Corporate bylaws establishing governance structure strengthen cases.

For closely held private companies, submit stock ledgers, stock purchase agreements, and capitalization tables showing ownership percentages. Certified accountant letters verifying ownership and control add credibility.

Publicly traded companies submit SEC filings including Forms 10-K annual reports and 10-Q quarterly reports. Annual reports list foreign affiliates, subsidiaries, ownership interests, and control designations. Major accounting firms prepare these with audited financial statements providing strong evidence.

Multi-tiered ownership structures showing indirect control require organizational charts mapping ownership chains. If US subsidiary owned by foreign parent through intermediate holding companies, document each ownership level showing ultimate control flows to qualifying parent.

Beyond Border analyzes ownership structures, calculates control percentages, and compiles comprehensive parent-subsidiary documentation packages.

Branch Office Relationships

L-1 branch office documentation proves US office operates as division of same legal entity as foreign company. Branches aren't separate business entities. No separate incorporation needed. The same corporation operates in multiple locations including US office.

Foreign corporations opening US branches register as foreign entities authorized to conduct business. Provide registration certificate from secretary of state showing foreign corporation registered to do business in the state. Include articles of incorporation from foreign jurisdiction showing legal entity formation.

Tax identification differs between branches and subsidiaries. Branches use parent company's foreign tax ID for US tax purposes initially before obtaining EIN. Subsidiary corporations have separate US tax IDs from formation. Include IRS documentation showing tax treatment as branch rather than subsidiary.

L-1 corporate structure documents for branches include organizational charts showing US office as division or department of parent corporation. Operational budgets showing US office as cost center within parent company budget demonstrate integration.

Financial statements showing US branch financial results consolidated with foreign parent company accounts prove unified entity. Separate subsidiary financial statements indicate different legal entities.

Management structure evidence matters. Branch managers typically report directly to foreign headquarters. Provide reporting structure charts, management appointment letters from foreign headquarters, and evidence foreign executives control US branch operations.

Banking arrangements for branches may use foreign parent bank accounts or US accounts opened in foreign corporation's name. Contracting authority documentation showing branch enters agreements on behalf of foreign corporation strengthens evidence.

Physical office evidence includes lease agreements, utility bills, and operational photographs. New office petitions need particularly strong evidence of established premises and credible plans supporting roles within one year.

Beyond Border establishes proper branch registration, documents operational integration with foreign parent, and compiles evidence proving unified legal entity status.

Affiliate Relationships

L-1 affiliate relationship evidence shows both US and foreign entities controlled by same parent company or individual. This creates sister company relationships between affiliates. Two entities qualify as affiliates when subsidiary of same parent, or under common individual ownership and control.

Common parent control means both US and foreign companies owned and controlled by same parent corporation. L-1 ownership verification requires parent ownership documentation for both entities. Submit stock certificates, ownership agreements, and organizational charts showing parent owns both affiliates.

Individual ownership affiliates exist when same person or group owns controlling interest in both companies. Sole proprietor operating businesses in multiple countries qualifies. Partnership or shareholder group owning both entities works.

Ownership percentages must provide control. Generally over 50 percent ownership in each entity satisfies requirements. Complex ownership through trusts, holding companies, or investment vehicles needs clear documentation tracing control.

Professional service firm affiliates follow special rules. International accounting partnerships marketing under same recognized name through worldwide coordinating organizations qualify as affiliates even without direct ownership relationships. This applies to limited number of very large, prominent firms like Big Four accounting firms.

L-1 corporate structure documents proving affiliate status include stock certificates from both entities, shareholder agreements, and ownership ledgers. If individual owns both companies, submit personal financial statements, tax returns showing ownership interests, and business registration documents naming the individual as owner.

Operational evidence strengthens affiliate claims. Shared branding, integrated business systems, joint marketing materials, or coordinated business strategies demonstrate affiliated relationship beyond just ownership.

Bank signature authority, shared management between entities, or board member overlap all support affiliate arguments. However, pure contractual relationships without ownership don't establish affiliate status even with close business cooperation.

Beyond Border maps complex affiliate structures, traces ownership chains through multiple entities, and compiles documentation proving common ownership and control.

Documentary Evidence Requirements

Strong L-1 corporate structure documents create comprehensive relationship proof. Begin with articles of incorporation for both US and foreign entities showing legal formation. Include amendments, mergers, or reorganization documents affecting ownership or control.

Stock certificates constitute primary L-1 ownership verification. Provide certificates showing share issuance to controlling owners. Stock transfer ledgers tracking ownership changes over time demonstrate current ownership. Closely held corporations submit complete capitalization tables.

Shareholder agreements detail voting rights, control provisions, and management authority beyond simple ownership percentages. These agreements show how ownership translates to actual control even in complex structures.

Board of directors meeting minutes documenting key decisions, management appointments, and operational control strengthen cases. Annual meeting minutes suffice generally. Minutes showing foreign entity appointed US entity management particularly valuable for L-1 parent subsidiary proof.

Tax returns for both entities showing business operations, revenue, and affiliated entity relationships provide excellent evidence. USCIS examines whether tax treatment matches claimed corporate structure. Include business tax returns for past three years.

Financial statements, particularly audited statements from recognized accounting firms, lend credibility. Balance sheets showing intercompany accounts between entities demonstrate active business relationship. Consolidated financial statements show parent-subsidiary relationships.

Organizational charts visually present corporate structure. Create clear charts showing ownership percentages, reporting lines, and management hierarchy. Charts should show beneficiary's position in both foreign and US organizations.

Business licenses, permits, and registrations prove both entities actively conduct business. Include professional licenses, operational permits, or industry-specific registrations required in respective jurisdictions.

For new office petitions under one year operation, include business plans, lease agreements, funding evidence, and personnel hiring plans proving serious intention establishing qualifying organization.

Beyond Border compiles thorough documentary evidence packages proving qualifying relationships through multiple complementary document types.

Maintaining Relationship Throughout Status

L-1 qualifying relationship must continue throughout beneficiary's stay. Corporate changes affecting ownership or control require immediate amended petitions. Sale of US subsidiary to unrelated purchaser terminates qualifying relationship invalidating L-1 status.

Employers must maintain detailed records about L-1 employees including employment contracts, job descriptions, compensation records, and work location documentation. USCIS may request evidence anytime verifying continuing qualifying relationship and employment terms.

Extension petitions require updated L-1 corporate structure documents proving relationship continues. Submit current organizational charts, updated stock certificates reflecting any ownership changes, and recent tax returns for both entities.

Financial status updates for US operations demonstrate continued viability. Include recent bank statements, financial statements, and evidence of continued business operations through contracts, invoices, or client records.

Staffing changes affecting organizational structure need documentation. If beneficiary originally filed as manager supervising employees, extension requires evidence organization still employs sufficient staff warranting managerial position.

Merger and acquisition scenarios require careful analysis. If foreign parent merges with another company, determine whether surviving entity maintains qualifying relationship. Stock transfers between related entities may preserve qualifying status if ultimate control remains unchanged.

Corporate restructuring like spin-offs, holding company insertions, or entity type changes need USCIS notification through amended petitions. Include restructuring agreements, new ownership documents, and legal opinions explaining continued qualifying relationship.

Blanket L petition holders must update approval if entities added, removed, or organizational structure changes materially. Blanket approvals last three years but require demonstrating continued qualifying relationships at renewal.

Beyond Border monitors corporate changes affecting L-1 status, files timely amendments, and ensures ongoing compliance with qualifying relationship requirements.‍

Frequently Asked Questions

What documents prove L-1 qualifying relationship? L-1 qualifying relationship requires stock certificates showing ownership percentages, organizational charts depicting corporate structure, tax returns for both entities, shareholder agreements, and SEC filings for public companies proving parent, subsidiary, branch, or affiliate status.

Can a US LLC sponsor L-1 visa? Yes, US LLCs can sponsor L-1 visas if maintaining qualifying relationship with foreign entity through ownership and control, with documentation including operating agreements, member certificates, and evidence of active business operations in both countries.

How much ownership is needed for L-1 parent subsidiary? L-1 parent subsidiary relationship requires owning over 50 percent with control, exactly 50 percent in joint venture with veto power, or less than 50 percent if demonstrating de facto control through management authority and operational direction.

What happens if ownership changes during L-1 status? Ownership changes affecting qualifying relationship require immediate amended L-1 petitions to USCIS with updated corporate documents, and failure to maintain qualifying relationship throughout the validity period invalidates L-1 status.

Do franchise agreements qualify for L-1 visa? No, franchise agreements, licensing arrangements, and contractual relationships without ownership and control do not establish L-1 qualifying relationships even with close business cooperation and shared branding between entities.