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Thread: L-1 Visa: Would You Like to set up a Branch or Subsidiary Business in the U.S.A.?

  1. #11
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    We started planning a long time ago.

    First to get my daughter and grandson settled in the U.S. (they are on a L visa.)

    Then we looked at the feasibility for ourselves to be able to come and go in the U.S. at will.

    We were a family owned business, Husband, myself and daughter, so it was difficult for the business, but not impossible!

    Our daughter left the company in 2007 and came to work for the same franchise in the U.S. but as an employee on transfer.

    Major loss to our company, but we survived.

    Then we started handing over any aspects of our own responsibilities which required us to be on-site, from about a year ago.

    So a long term strategy is crucial for anyone wanting to go the same route we have.

    The largest problem is that we have insufficient profit to enable "understudy" employees! so we have to do everything we can to retain our present experienced employees.

    Another challenge facing any business trying to operate remotely is trust.
    Fortunately at this time we have total trust in our managers, and have given them a small shareholding to try to ensure they have a vested interest.

    It is the "day to day control" that will be the most difficult, if one of our employees should not be available for any reason, so realistically at this point we do have substantial problems!

    To work remotely - we put in a server, and aimed to set it up so that we had a finger on everything through processes and procedures. Purchased a C.R.M. program, to date that is not operational though! so lots to still achieve.

    I have a strange routine whilst here in the U.S. in that I try to be available from 3.am. - 9 a.m. - South African time 11 a.m. to 5 p.m. I am still the only one to have the password to "alter" any accounting issues. Confirmation of Instructions for banking etc.

    We are extremely fortunate in our specific niche market, which permits the possibility of "remote" control.

    I was here in the U.S. for six months last year, and my husband and I have both been here for two and a half months as a trial period.
    We return next week to South Africa - So far, so good?
    Our employees assure us that there are no problems, so we hope that they are not keeping any problems or bad news for our return!

    The real feasibility of retaining and operating our business in South Africa will depend totally on our employees, so we have to sell them the concept that they truly "own" their own jobs.
    One issue we have is to develop an incentive program for employees which will not be seen as a disadvantage, should we decide it is not feasible to work remotely and wish to sell the company.
    So employee incentives without any "unintended consequences" has to be developed.

    We have also had to set up a small "cushion" of cash flow, but will without question not operate the business "at risk", our main criteria will be a constant check that the business remains financially viable.

    This is quite a liberating aspect, as previously "everything" was tied up in the company, the constant fear of staying viable was massive!
    As with many SME owners, we had made the mistake of thinking our business would "look after our retirement", this is not true as basically we "owned our own employment".
    The fear of course has shifted to will we earn sufficient to fund ourselves in the U.S!

    We are torn apart at leaving South Africa, at no time, even when most of our friends decided to leave, did we ever think we would even consider it!
    Risking everything, including our business was just not a consideration, but now we feel whatever our financial cost, we want other options!

    We used to say that when we felt a need to carry a gun, we knew it was time to leave! We still have no desire to carry a gun! but definitely feel a need for protection!

    Having our grandsons future as our ultimate priority, and wanting to be around to watch him grow, made the decision easy in the end.

    Taking him to baseball practise at night, parking on a dark field, walking to the vehicle without fear! Standing chatting without watching that there are still lots of cars around, it took some time to stop checking behind trees and bushes!
    We walk to a nearby restaurant at night!
    These are the small things that make our future worthwhile.

    Whether we are making a major mistake or not, we are now committed, and now have the challenge of a lifetime to keep the South African business viable.

    Yvonne

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    Dave A (15-Jan-09)

  3. #12
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    Quote Originally Posted by Yvonne View Post
    This is quite a liberating aspect, as previously "everything" was tied up in the company, the constant fear of staying viable was massive!
    As with many SME owners, we had made the mistake of thinking our business would "look after our retirement", this is not true as basically we "owned our own employment".
    The fear of course has shifted to will we earn sufficient to fund ourselves in the U.S!
    Wow! I just want to say well done to you It is really so amazing and fascinating how this move has forced a mindshift. I hope to one day make the same moves forward with my business. I have a lot of respect for what you have achieved.

    Quote Originally Posted by Yvonne View Post
    Taking him to baseball practise at night, parking on a dark field, walking to the vehicle without fear! Standing chatting without watching that there are still lots of cars around, it took some time to stop checking behind trees and bushes!
    We walk to a nearby restaurant at night!
    These are the small things that make our future worthwhile.
    That particular freedom is amazing. I hope to see it here in SA within my lifetime.
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    Site Caretaker Dave A's Avatar
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    I hope you'll see your way clear to keep the open flow of feedback going, Yvonne. I'm really appreciating the perspective it's bringing.

    There's two things in particular I'm looking forward to hearing over time:
    • How the remote control works out over time, and
    • The differences between running a business in SA vs USA.

  5. #14
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    Green Card from L-1A status

    I thought it pertinent to briefly discuss the benefit that an L visa provides in terms of getting a green card, because once you get a green card then you no longer have to worry about keeping the S.A. business operational. Once you have a green card you are then free from the restrictions of the L visa and can even close down your U.S. and S.A. businesses if you so wish.

    If you are granted an L-1 visa as a manager or executive level employee, and not a specialized knowledge employee, then you are at a major advantage in terms of processing times when applying for a green card. To understand this it is useful to know how the employment based (as opposed to family based, e.g. marrying a U.S. Citizen) green card petition process works:

    As a very basic overview, the EB (Employment Based) green card petitions get broken down into 5 categories, the first three of which are based on educational background, work experience, job position, etc. The EB-1 category is intended for "Priority Workers" for persons with "extraordinary ability" in their field. Generally this priority group is extremely difficult to get into as it requires a person who has achieved a very high level of acclaim in their field, as evidenced through internationally received awards etc. As such, there are not very many petitions filed in this category and thus the processing times are far shorter then other EB categories, taking approximately 1-2 years to process as opposed to other another category which may take 4 years to process.

    Further, when applying for a green card from an L visa, the beneficiary can use the U.S. company that he/she established as the petition/sponsor for the green card, which is another major advantage, as opposed to having to find a sponsoring employer.

    Accordingly, one will not have to keep the S.A. company operational for an extended period of time if one does not wish to or if it does not make long term business sense.

    Regards,

    Hendrik Pretorius
    Attorney at Law
    Muston & Jack, P.C. - Los Angeles Branch
    70 S. Lake Ave., Suite 1000
    Pasadena, CA 91101
    Telephone: 00 1 323.506.5388
    Fax: 00 1 323.843.9879
    www.mjlaw.co.za
    www.los-angeles-immigration.com

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    Thanks Hendrik,

    That was an interesting post.

    It is sometimes difficult to decipher the technicalities:

    L-1 visa as a manager or executive level employee, and not a specialized knowledge employee,
    Is it possible to get a L-1 visa based on both an executive level employee and a specialized knowledge employee?

    Which is how I think both my husband and daughters visa is granted? but not positive!

    Would need to read our documentation to clarify.

    But just wanted to ask for anyone else who may be interested?

    Yvonne

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    Hi Yvonne,

    Great question. One company may petition for several L visa personnel, whether they be executive or managers (L-1A) or persons of specialized knowledge (L-1B) as long as the company is able to justify the need for several L visa employees. This consideration depends of course on the size and scope of the business.

    Of course, the employee on the L-1A visa is going to benefit from the quicker processing times as discussed previously, where the L-1B will have to wait through a longer processing time, however both are still able to adjust their status to get green cards, assuming of course all requirements are satisfied.

    Attorney Hendrik Pretorius
    www.mjlaw.co.za
    www.los-angeles-immigration.com

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  9. #17
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    Hi Yvonne, I realise this an old post still I would value your input on L1A visa in the 2018? We have been in the USA since 2016 on this Visa. There is much speculation about current Green Card applications. Do you have any knowledge about this?
    Cheers, Pieter Greyling

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