Last reviewed October 7, 2026 · By the NYBACS advisory team
Short answer
Yes. The L-1 rules set no minimum company size, revenue or investment, and USCIS must judge staffing against the reasonable needs of an organization at its stage of development. But size raises the evidence bar: both the foreign and US companies must be genuinely doing business, and in a very small team the petition must show who performs the routine work so the transferee is truly managing or applying specialized knowledge.
Key takeaways
- There is no statutory or regulatory minimum level of business activity, but the business must be active enough to need a manager, executive or specialized knowledge employee.
- Where staffing is considered, USCIS must weigh the reasonable needs of the organization in light of its overall purpose and stage of development.
- In companies with only a few employees, USCIS may ask for position descriptions and hourly duty breakdowns for every employee, plus payroll records.
- Functions such as accounting, sales or warehousing may be outsourced to contractors, and that outsourced capacity can show who handles operational work.
- Employers with 25 or fewer full-time equivalent employees pay a reduced I-129 base fee and a $300 rather than $600 Asylum Program Fee.
Size is not a bar — activity is the test
USCIS guidance states that there is no statutory or regulatory minimum level of business activity for the US or foreign organization. What is required is that each is "doing business" — regularly, systematically and continuously providing goods or services — at a level that needs the services of someone in a managerial, executive or specialized knowledge capacity.
That cuts both ways for small companies. A 12-person engineering firm in Pune with steady clients can support a transfer of its operations head to a new US sales office. A company that exists mainly on paper, a dormant entity or a pure holding company abroad cannot, however well-documented its incorporation is.
The startup problem on the foreign side
Founders often focus on the US entity and overlook the foreign company. For an L-1, the foreign side has to carry real weight:
- It must have employed the transferee full-time for a continuous year in a qualifying role. In a three-person company, showing that the founder was primarily managing — rather than personally coding, selling and invoicing — is harder.
- It must keep doing business for the whole L-1 stay. A pre-revenue startup whose only activity is the founder may struggle to show regular provision of goods or services.
- Its structure is evidence. For new-office L-1A cases, the foreign company's organizational structure is part of the required evidence.
If the "foreign business" is an early-stage idea rather than an operating company, the L-1 may not be the right tool, and immigration counsel can assess other categories.
How a small team can still support a managerial role
For an L-1A in a small company, the central question is who performs the day-to-day work. Evidence that helps:
- A real organization chart with every employee and contractor, their duties and who supervises them.
- Hourly or percentage breakdowns of the transferee's duties showing most time is spent managing — strategy, budgets, hiring, supervising professionals or an essential function.
- Contractor arrangements for outsourced functions — bookkeeping, logistics, sales agencies, development studios — with contracts and invoices to prove they exist.
- Foreign staff supporting the US entity, documented with payroll records, position descriptions and intercompany invoices. USCIS has said an attestation that foreign staff will support the US role is generally not enough without supporting evidence.
- Function manager framing where appropriate: a senior person managing an essential function without large direct reports, if the function and its staffing are clearly evidenced.
USCIS may not deny a case merely because headcount is small, but it can and does test whether the claimed structure is real.
Lower fees, same evidence standard
USCIS fees are scaled for small employers. Petitioners with 25 or fewer full-time equivalent employees pay a reduced Form I-129 base fee and an Asylum Program Fee of $300 instead of $600; nonprofits pay no Asylum Program Fee. The $500 fraud prevention and detection fee still applies to initial petitions. The larger $4,500 9-11 fee affects only employers with 50 or more US employees, more than half in H-1B or L status, so it rarely touches small companies.
The evidence standard does not scale down. A small company should expect to prove its operations with tax returns, financial statements, bank statements, contracts and payroll records just as a larger group would — often with more scrutiny because there is less public information about it.
A readiness checklist for small companies
Before approaching an attorney, a small group should be able to answer yes to most of these:
- The foreign company files tax returns and has at least one recent set of financial statements.
- The transferee has been on the foreign payroll, full-time, in a defined senior role for over a year.
- Someone other than the transferee can run the foreign company during the assignment.
- The US entity is formed, owned and controlled as intended, with capital actually transferred.
- US premises suit the business plan.
- There is a realistic hiring or contractor plan for US operational work.
- Both companies' books are current and reconciled.
Common mistakes to avoid
- Assuming that a registered foreign company with no customers or staff counts as an operating business.
- Describing the transferee as CEO of a two-person company while the duty breakdown shows mostly sales and delivery work.
- Claiming outsourced support without contracts or invoices to prove the contractors exist.
- Relying on a statement that foreign staff will support the US role, without payroll or intercompany evidence.
- Leaving the foreign company's books months behind, so it cannot produce current financial statements.
- Overstating headcount in the business plan to look larger, creating problems at the extension.
NYBACS 360° support
How NYBACS helps
- Runs a readiness review of both companies' records and highlights gaps a small group typically has — missing payroll, stale accounts, undocumented contractors.
- Sets up contractor agreements, intercompany service invoices and bookkeeping that make outsourced and cross-border support visible.
- Prepares concise financial statements for small entities that can stand as evidence of doing business.
- Builds organization charts and duty breakdowns from real payroll and contract data for your attorney to refine.
Frequently Asked Questions
Is there a minimum investment for a startup L-1?
No fixed amount exists in the L-1 rules. For a new office, the investment must be enough to secure premises, pay the transferee and start the business described in the plan, and the foreign company must show it can fund it.
Can a venture-backed US startup use the L-1?
Only if it has a qualifying relationship with a foreign operating company where the employee worked for a year. Fundraising can dilute the foreign parent or founders, so equity rounds should be checked against the ownership-and-control tests before closing.
Can a one-person US company sponsor an L-1A?
It is possible but difficult. USCIS will ask who performs the operational work. Contractors, foreign support staff and a credible hiring timeline need to be evidenced, and for a new office the first approval is only one year.
Do nonprofits qualify for L-1?
Yes, nonprofit organizations can use the L classification if all requirements are met. They often prove ownership and control through governance documents rather than share registers, and they pay no Asylum Program Fee.
