L-1 vs E-2: Which Visa Makes Most Sense for Entrepreneurs?

If you’re an entrepreneur looking to establish or expand your business in the United States, you may have heard about the L-1 and E-2 visas. Both are popular pathways for foreign business owners, but they serve different needs and profiles. Choosing between them can feel overwhelming, especially when you’re busy building your enterprise.

Both the L-1 and E-2 are nonimmigrant visa options, meaning they allow you to live and work in the U.S. temporarily—without offering automatic permanent residency. But depending on your long-term plans, one may align more closely with your business strategy than the other.

E-2 Visa: Flexible Entry for New Ventures

The E-2 visa is for entrepreneurs from treaty countries who invest a “substantial” amount of capital into starting, growing, or acquiring a U.S. business. Unlike the L-1, it doesn’t require an existing corporate presence or prior employment relationship abroad. This makes it especially appealing if you’re launching a business from scratch—whether that’s a franchise, a consultancy, or a tech startup.

The E-2 visa offers three major advantages over the L-1 visa:

• Renewable indefinitely if the business remains operational and at least 50% is owned by nationals of your treaty country
• E-2 businesses can easily sponsor executives, supervisors, and essential employees from the same treaty country
• Does not require substantial or preexisting business operations or personnel

A few limitations to keep in mind:

• Requires investing “substantial” personal capital
• Treaty country nationality requirement limits who can apply, and can impose rigid limitations on corporate structure
• Transition from visa to green card is less straightforward and streamlined

L-1 Visa: A Strategic Option for Business Expansion

The L-1 visa is best suited for entrepreneurs who already own or run an established business abroad and want to expand operations in the U.S. Through the L-1, your foreign company can transfer you—as the founder or executive—to launch, grow, or sustain the company’s U.S. presence.

The L-1 visa offers three major advantages over the E-2 visa:

• No minimum investment requirements
• A direct path to permanent residence – The EB-1C green card category has very similar eligibility requirements, and pursuing a green card does not jeopardize L-1 status
• No nationality requirement – For entrepreneurs from countries lacking an E-2 treaty, an L-1 visa can be structured to serve as an investor visa alternative

Some important limitations to keep in mind:

• You must have worked in an executive, managerial, or specialized-knowledge role for the company abroad during at least one in the last three years
• You must sustain business operations overseas even after your U.S. transfer to maintain eligibility
• The operations and employee structure of the company must typically justify transferring an executive or senior manager to the U.S., which can be challenging for smaller companies and startups

Final Thoughts

Both visas are great options for entrepreneurs and provide a fast and streamlined path toward living and working in the United States as a business owner. Both also offer automatic work authorization for the entrepreneur’s spouse—a powerful draw for professional couples.

You can read more about the E-2 visa and the L-1 visa on our website.