When someone plans to bring a business into the United States, the immigration question usually turns to how that person is connected to the business.
In some cases, the individual plans to invest personal funds into a U.S. company and take responsibility for running it day to day. In other cases, the individual already owns and operates a company outside the United States and plans to establish a related U.S. entity through that existing business. The person may still be the owner, but the U.S. role is tied to the company’s structure and operations rather than to a personal investment.
These situations fall under different visa categories. The E-2 Treaty Investor visa applies to individuals who invest their own capital into a U.S. enterprise and direct its operations, based on the nationality of a qualifying treaty country. The L-1 Intracompany Transferee visa applies when a foreign company establishes or operates a related U.S. entity and places an individual in the United States based on prior employment with that company in a managerial, executive, or specialized knowledge role. For L-1 purposes, ownership alone is not enough.
Because these visas are built on different requirements, many individuals will meet the criteria for only one of them. Some will meet neither. The outcome depends on how the expansion is structured, how the individual is positioned within the business, and how the foreign and U.S. entities are connected.
This article explains how U.S. government agencies define the E-2 and L-1 visas and how specific business circumstances determine whether one of these categories may apply.
E-2 Treaty Investor Visa
The E-2 Treaty Investor visa is a non-immigrant visa for individuals who invest their own capital into a U.S. business and take responsibility for directing that business. At its core, the E-2 visa is built around personal investment and control. The individual is not entering the United States as an employee of a company. They are entering as the investor who is actively running the business they funded.
Treaty nationality
E-2 eligibility depends first on nationality. The applicant must be a citizen of a country that has a qualifying E-2 treaty with the United States. Permanent residence in a treaty country is not enough. If treaty nationality is missing, the E-2 option is not available, regardless of the size of the investment or the strength of the business plan.
This requirement alone means E-2 is not available to many otherwise viable businesses.
Investment and risk
The E-2 visa requires a substantial investment, but U.S. immigration law does not set a fixed dollar amount. Instead, officers look at whether the amount invested is substantial in relation to the cost of establishing or purchasing the business.
What matters is commitment and risk. The funds must be placed into the business and exposed to commercial risk. Money that remains uncommitted or under the investor’s personal control does not meet E-2 standards.
The business
An E-2 business must be a real, active commercial enterprise. Passive investments do not qualify. The business must also be more than marginal, meaning it must have the capacity to support operations beyond providing a minimal living for the investor and their family.
Immediate profitability is not required, but the business must show a credible ability to operate and grow.
The investor’s role
An E-2 investor must develop and direct the business. This usually means majority ownership or clear operational control. The role must be active. Investors who do not participate in decision-making or who plan to remain largely hands-off generally do not fit the E-2 framework.
This requirement is central to understanding who the E-2 visa is for. It is designed for individuals who are building and running a U.S. business themselves.
Duration and flexibility
E-2 status is temporary, but it can be extended repeatedly as long as the business continues to operate and all requirements remain satisfied. There is no statutory limit on the number of extensions. This makes E-2 a flexible option for qualifying investors, but it does not change its non-immigrant nature.
Key point
The E-2 visa works when U.S. expansion is owner-driven, funded by personal capital, and controlled by the investor. When those elements are missing, E-2 is usually not the right category.
L-1 Intracompany Transferee Visa
The L-1 Intracompany Transferee visa applies when a U.S. business is being created or operated through an existing foreign company, rather than through a personal investment by an individual.
This visa does not ask whether the individual invested money. It asks whether a foreign company already exists, whether that company controls the U.S. entity, and whether the individual is coming to the United States because of their role within that company.
The foreign company
L-1 eligibility begins with the foreign business. The company must be active and operating, and it must own or control the U.S. entity. The U.S. business exists as an extension of the foreign company’s operations.
If there is no functioning foreign company, or if the U.S. entity is owned personally rather than through the foreign business, the L-1 category generally does not apply.
The individual’s role abroad
The individual must have worked for the foreign company for at least one continuous year within the three years before seeking L-1 classification. That work must have been in a managerial, executive, or specialized knowledge role.
This requirement often determines whether L-1 is possible. If the person was primarily performing hands-on or operational tasks abroad, or if the company cannot document a real employment role, an L-1 is usually not viable.
The individual’s role in the United States
The U.S. position must reflect the same type of responsibility. L-1 is meant for leadership and key personnel, not for individuals who will perform most of the day-to-day work themselves.
If the U.S. operation is too small to support a managerial or executive role, or if the individual must handle routine operations due to a lack of staff, the case often does not fit L-1 standards.
Business owners and founders
Owners and founders can qualify for L-1, but only when they also meet the employment and role requirements. Ownership alone has no weight. What matters is whether the company operates independently of the owner and whether the owner functions as a manager or executive rather than as the primary worker.
L-1 tends to work best for owners of established companies with defined roles, management layers, and the ability to scale operations in the United States.
Key point
The L-1 visa fits when U.S. expansion is company-driven, supported by an operating foreign business, and built around a leadership or specialized role. When expansion depends mainly on one individual doing the work, L-1 is often not the right category.
When E-2 and L-1 Can Both Appear Possible
After reviewing the E-2 and L-1 frameworks, some readers may find that elements of both seem to apply. This usually happens when an individual both owns a foreign company and plans to be personally involved in U.S. operations.
In practice, true overlap is limited. Most cases are resolved by looking closely at why the individual is entering the United States and how the U.S. business is structured.
The E-2 and L-1 visas are built on different legal foundations. When facts appear to point in both directions, one framework usually aligns more closely with how the business actually operates.
What typically resolves the question
In cases where both visas seem possible, the following factors usually determine which category fits.
If the individual is entering the United States primarily because they invested personal funds and will personally direct the U.S. business, the facts tend to align with the E-2 framework.
If the individual is entering the United States because an existing foreign company is expanding operations and placing them in a qualifying role within a related U.S. entity, the facts tend to align with the L-1 framework.
Ownership alone does not decide this question. What matters is whether the U.S. role exists because of investment or because of employment within a company structure.
Sources: