The L-1 Visa (Intracompany Employee) is a nonimmigrant visa issued to non-U.S. persons. It allows a U.S. employer to transfer an executive, manager, or other individual with specialized knowledge and skills from one of its non-U.S. affiliated offices to a U.S.-based office location.
There are two types of L-1 Visas:
- L-1A. Transfer of a manager or executive.
- L-1B. Transfer of an employee with specialized knowledge.
If the employee has a spouse and dependent children under 21 years old, those family memberes can also move to the U.S. under an L-2 nonimmigrant visa.
The L-1 authorizes the individual to live and work from inside the U.S. on a full-time basis. In contrast, a B-1 Visa is a temporary business visitor visa that allows individuals to travel to the U.S. for temporary work; however, the individual cannot live and work in the U.S. full-time.
The L-1 visa is generally valid for three years, and requests for extensions are granted in increments of up to two additional years. The maximum stay on an L-1A visa is seven years, and the maximum stay on an L-1B visa is five years.
Federal Tax Implications
The L-1 is a nonimmigrant visa, so it does not establish U.S. citizenship or issue a U.S. Green Card to the individual.
Individuals living and working in the U.S. on an L-1 will generally become a U.S. tax resident under the Substantial Presence Test. The individual must file an annual Form 1040 (US Individual Income Tax Return) and state income tax returns depending upon where they live and work.
Most L-1 visa holders still have foreign bank accounts, foreign investments, and other foreign assets and income. As a result, the taxpayer must file Form 114 (Report of Foreign Bank Accounts), Form 8938 (Specified Foreign Financial Assets), and Form 1116 (Foreign Tax Credit).
L-1 Visa to Green Card or U.S. Citizenship
Because the L-1A and L-1B expire after 7 and 5 years, respectively, many individuals wanting to remain in the U.S. will apply for a U.S. Green Card or U.S. Citizenship. The L-1 is a dual-intent visa, meaning at the time of L-1 visa application, the individual can have the ultimate goal of immigrating to the U.S. and becoming a lawful permanent resident. In contrast, with a B-1 Visa or B-2 Visa, the applicant must affirm they have nonimmigrant intent.
Other Information on L-1 Visas
Additional information about the L-1A and L-1B visas can be found by visiting the U.S. Citizenship and Immigration Services website.