Entering the U.S. market as an international company and establishing a branch through an L-1A visa can be strategically advantageous. However, the process involves significant legal and operational risks. Insufficient preparation, inadequate documentation, and failure to engage in long-term planning can result in delays or even denial of the petition. 

As a threshold requirement, the applicant must have been employed abroad by the qualifying organization for at least one continuous year within the three years preceding the filing of the petition. It must also be demonstrated that the applicant will continue in a comparable managerial or executive capacity in the United States. Below are the five most frequently encountered mistakes in L-1A filings, along with our recommendations for avoiding them. 

1. Failure to Properly Establish the Qualifying Relationship

Petitioners often fail to sufficiently document the qualifying corporate relationship between the U.S. entity and the foreign parent, subsidiary, branch, or affiliate. USCIS requires that the organizations meet the statutory definition of a “qualifying organization.”
Therefore, submitting incomplete or unclear evidence increases the likelihood of a Request for Evidence (“RFE”) or denial, which may significantly prolong the adjudication process. 

To avoid this issue: 

• Provide clear organizational charts andaccurateownership/capital structure documentation. 
• Submitcomplete corporate records such as articles of incorporation, share certificates, and stock transfer ledgers. 
• Clearly outline ownership and control mechanisms (voting rights, veto authority, management oversight, etc.).

2. Drafting a Job Description That Is Too Operational or Insufficiently Managerial

The L-1A classification is reserved for individuals employed in a managerial or executive capacity. Accordingly, the petition must highlight strategic, supervisory, and high-level responsibilities rather than daily operational tasks. USCIS must be able to conclude that the beneficiary meets the statutory definitions of “managerial capacity” or “executive capacity.”
If the job description emphasizes operational duties or lacks sufficient managerial depth, USCIS may determine that the position does not qualify for L-1A classification. 

To avoid this issue: 

• Provide a precise and detailed description of duties, emphasizing supervisory authority and strategic responsibilities.
• Document the number of employees supervised, budgetary authority, and the beneficiary’s role in high-level decision-making.
• Clearly present the organizational structure and reporting lines within the business plan and supporting documents.

3. Weak Business Plan and Unrealistic Financial Projections

For new office petitions, a comprehensive business plan is essential. USCIS requires detailed information regarding market analysis, financial projections, staffing plans, and organizational development. For “new office” L-1A petitions, USCIS closely examines whether the business plan demonstrates the ability to support a managerial or executive role within one year of approval. 

Generic business plans, exaggerated revenue projections, or inadequate staffing forecasts can undermine the credibility of the petition. 

To avoid this issue: 

• Include a robust market analysis (competition, target market, growth opportunities).
• Prepare financial projections for at least 3–5 years, including profit-and-loss statements, cash-flow projections, and balance-sheet forecasts.
• Provide a detailed staffing plan (organizational chart, salary structure, hiring timeline).
• Treat the business plan as both a visa requirement and a long-term corporate strategy document.

4. Insufficient Evidence of “Doing Business” — Lack of Actual Operations in Both the U.S. and Abroad

USCIS must see that both the U.S. entity and the foreign entity are actively engaged in “doing business,” which means the regular, systematic, and continuous provision of goods or services. A virtual office or simple mailing address is generally not sufficient.
Lack of operational evidence (invoices, contracts, payroll, bank statements) may result in RFEs or denials. 

To avoid this issue: 

• Provide customer contracts, invoices, bank statements, payroll records, and other evidence of ongoing activity.
• Submitevidence of a physical office, such as a lease agreement, utility bills, or equipment invoices. 
• Maintainupdated documentation of the company’s structure and ongoing business operations. 

5. Neglecting Long-Term Planning and the Extension Strategy

A “new office” L-1A visa is typically granted for an initial period of 1–3 years. L-1A status may be extended for up to 7 years in total (L-1B up to 5 years). For extensions, USCIS closely reviews the company’s performance during the first year. 

If hiring targets, revenue growth, or operational development are not clearly documented, the petitioner may face RFEs or denials. 

To avoid this issue: 

• Establishan extension strategy from the outset, identifying key milestones such as hiring objectives, revenue goals, and customer acquisition. 
• Prepare regular performance reports, financial statements, and employment records for submission atextensiontime. 
• Develop the extension evidence package early,anticipatingpotential RFE scenarios and associated risks. 

Core Legal Requirements for the L-1A Visa 

While discussing the above issues, it is important to keep the underlying legal framework in mind: 

• The beneficiary must have been employed in a managerial or executive capacity by a qualifying foreign entity for at least one continuous year within the past three years.
• For “new office” petitions, the U.S. entity must have securedappropriate physicalpremises and must be reasonably expected to support a managerial/executive role within one year of approval. 
• At extension, USCIS will evaluate the petition based on the business plan, actual operational performance (revenue, client activity, payroll), and documented growth.
• Petitioners should be prepared for compliance reviews. FDNS (the Fraud Detection and National Security Directorate of USCIS) may conduct site visits and request evidence of actual business operations.

Ensuring that your business plan is structured from the outset to satisfy visa requirements and align with long-term corporate strategy, and maintaining all documentation relating to corporate structure and business operations in a consistent and up-to-date manner, is essential. Additionally, preparing early for the extension process and ensuring that first-year performance aligns with USCIS’s extension criteria is critical to the success of the petition. 

Because working with an experienced immigration law firm provides a substantial advantage in L-1A filings, we want you to know that Yellow Law is by your side throughout every stage of the process.