L1-A option to establish startup business in the U.S.

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defactoNew Member
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Posts: 2
Joined: 6 May 2010

L1-A option to establish startup business in the U.S.

Post Thu May 06, 2010 5:51 pm

Hi guys,
Anyone's take on my plan would be appreciated. Basically, I live in the U.S. on a TN, with my girlfriend, also on a TN. I'm planning to start my business in the U.S. but obviously, visa is an issue. EB-5 is completely beyond my means and E-2 seems pretty cumbersome. I was looking at an L-1 alternative.

Basically, I would go back to Canada to start my business. After operating in Canada for a year, I would make a request for a L-1A visa, to set up a U.S. subsidiary. Provided that this would be granted, I would be eligible to apply for a Green Card under EB1 after operating the U.S. subsidiary for a year. Upon receiving my GC, I would close the Canadian company and operate exclusively in the U.S. All my clients are expected to be in the U.S. anyways.

A few questions.
1- Does this plan make sense?
2- If so, does the L1-A require you to move to the U.S. or can you keep your residence in Canada and travel to the U.S. as needed to set up and operate the U.S. business? Ideally I'd move back to the U.S. once I'd get the green card.
3- If I keep residence in Canada while having a L-1, how does taxation work? Any potential double-tax issues?
Thanks
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agnelsonCanuckAbroad VIP
Posts: 3263
Topics: 1
Joined: 26 Aug 2009

Re: L1-A option to establish startup business in the U.S.

Post Thu May 06, 2010 7:14 pm

Lets put aside tax issues right now (and look at forums.serbinski.com for this anyways).

L1 sponsorship requires the two companies involved to continue to do business in both the foreign country and US after the transfer. the companies must have a business prence in both countries, and the L1 employeee must be managing staff, not simply acting as an agent or sole employee of either comapny.

I would get string advice from a US immig lawyer.
This site is a travel site and not best source for these topics:
TN and TD info: http://forums.immigration.com/forumdisp ... -TN-Status
For US/Cdn taxes and SS/CPP:forums.serbinski.com/index.php
US Marriage-based Immigration: visajourney.com
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defactoNew Member
Topic author
Posts: 2
Joined: 6 May 2010

Re: L1-A option to establish startup business in the U.S.

Post Fri May 07, 2010 10:50 am

I will most likely be hiring some people in the U.S., although maybe not in Canada. However, I thought managing staff was not necessary to be considered L1-A, as long as you are in an executive position, which I'd obviously be.
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agnelsonCanuckAbroad VIP
Posts: 3263
Topics: 1
Joined: 26 Aug 2009

Re: L1-A option to establish startup business in the U.S.

Post Fri May 07, 2010 10:58 am

You need to be an executive OVER staff, not merely self-employed. Your lawn guy is not an executive, so he can't transfer himself to US, even though he has a business like you.


and you'll need active business in both countries.

Again, this will be something your lawyer will be able to discuss with you while drawing up the papers.
This site is a travel site and not best source for these topics:
TN and TD info: http://forums.immigration.com/forumdisp ... -TN-Status
For US/Cdn taxes and SS/CPP:forums.serbinski.com/index.php
US Marriage-based Immigration: visajourney.com
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