Last reviewed October 7, 2026 · By the NYBACS advisory team
Short answer
A new office L-1 is a petition for an employee coming to open, or work in, a US operation that has been doing business for less than one year. Instead of proving an established US business, the petitioner shows secured physical premises, the foreign company's investment and ability to pay, and — for L-1A — a credible plan to support a managerial role within a year. Approval is capped at one year, then an extension must prove real operations.
Key takeaways
- "New office" is defined by activity, not age: a US entity formed years ago that has done business for less than a year can still be a new office.
- The petition must expressly request new-office adjudication; otherwise USCIS may judge it against the standards for an established US business.
- Secured physical premises are mandatory for both L-1A and L-1B new-office petitions.
- The new-office extension requires proof of a year of doing business, the staffing with evidence of wages paid, the employee's actual duties and the US operation's financial status.
- Once the first new-office extension is approved, later extensions are treated as ordinary L-1 extensions.
When a petition is a new office petition
The regulations define a new office as an organization that has been doing business in the United States through a parent, branch, affiliate or subsidiary for less than one year. Three situations commonly fall in this category:
- a foreign company forming its first US subsidiary;
- a US entity that was registered earlier but has not yet engaged in regular, continuous business;
- an established company opening an office in a new US location that meets the definition.
The special rule exists because a start-up cannot yet show a year of trading or a full team. In return, USCIS limits the first approval to one year and re-examines the operation at the extension. The petition must say clearly that it seeks new-office treatment and explain how the requirements are met.
Evidence for L-1A and L-1B new offices
| Evidence | L-1A (manager/executive) | L-1B (specialized knowledge) |
|---|---|---|
| Sufficient physical premises secured | Required | Required |
| Prior year abroad | Must be managerial or executive | Specialized knowledge (or other qualifying capacity) |
| US entity is or will be a qualifying organization | Required | Required |
| Financial ability to pay the employee and start business | Through size of US investment and foreign entity's finances | Required |
| Plan to support a managerial role within one year | Required — scope, organizational structure, financial goals | Not required |
| Foreign entity's organizational structure | Required | Helpful context |
The L-1A standard is the more demanding one: the evidence has to make it believable that, within twelve months of approval, the US operation will have grown enough that the employee is primarily managing rather than doing the work.
Getting the premises evidence right
"Sufficient" premises means space that fits the business described in the plan:
- Match the business model. A distribution business needs storage or warehouse access; a consulting or software office needs workspace for the planned hires, not a single desk.
- Sign in the US entity's name. A lease held personally by the founder, or by the foreign parent, makes the link less clear.
- Cover the approval period. A lease that expires in two months or is month-to-month without explanation invites questions.
- Show it exists. Floor plans, photos and the landlord's details are useful.
Virtual offices, mail-forwarding addresses and registered agent addresses are generally weak evidence of physical premises. A dedicated private office in a serviced building is a different proposition from shared hot-desk access, and the attorney should judge what the particular business needs.
What a credible new-office business plan contains
For an L-1A new office, the business plan is the main evidence that a managerial role will exist within a year. Useful plans include:
- Market and offering — what the US entity will sell, to whom, and how this connects to the foreign company's existing products or customers.
- Organizational chart by month — the roles to be hired in the first 12 and 24 months, with salaries and start dates.
- Financial projections — monthly revenue, payroll and overhead for year one, plus annual figures for later years, with assumptions stated.
- Investment and funding — the amount the parent will invest, when, and evidence the parent can afford it (its financial statements and bank balances).
- The employee's duties over time — hands-on early tasks, and how those transfer to hires as the office grows.
Numbers should be internally consistent and tie to the budgeted capital. Overly ambitious projections can hurt the extension later, when actual results are compared with the plan.
What USCIS checks at the one-year extension
The extension asks for five things: evidence that the US and foreign entities are still qualifying organizations; evidence the US entity has been doing business for the previous year; a statement of the employee's duties over the past year and planned duties; a description of staffing — number of employees, types of positions and evidence of wages paid, where the role is managerial or executive; and evidence of the US operation's financial status.
In practice that means having US payroll filings (Form 941, W-2s), monthly financial statements, bank statements, customer contracts and invoices ready. Plan the first year's hiring and bookkeeping with this list in mind, because records created after the fact are much weaker than records kept as the business ran.
Common mistakes to avoid
- Forgetting to request new-office treatment, so a three-month-old company is judged as if it had a year of operations.
- Securing premises that cannot house the staff the business plan says will be hired.
- Presenting a business plan whose hiring and revenue figures do not tie to the capital the parent actually invested.
- Relying on contractors abroad for all work without explaining how they relieve the US manager of operational tasks.
- Not running US payroll in year one, leaving no wage evidence for the extension.
Documents and records to prepare
- Signed lease or sublease in the US entity's name, with floor plan or photos
- Evidence of the parent's investment: board approval, wire confirmations and US bank statements
- Foreign parent's financial statements and bank evidence of its ability to fund the US office
- Business plan with monthly year-one projections and a staffing timeline
- US and foreign organization charts
- US formation, ownership and EIN documents
NYBACS 360° support
How NYBACS helps
- Prepares the financial model behind the business plan — hiring timeline, payroll cost, overhead and revenue — so the narrative your attorney uses ties to the numbers.
- Records and reconciles the parent's investment so the US books, bank statements and ownership records match.
- Sets up US payroll, monthly closes and management reporting from launch, so extension evidence builds up as the business runs.
- Prepares a year-one evidence pack — payroll filings, financial statements, contracts and invoices — for your attorney ahead of the extension.
Frequently Asked Questions
Is a coworking membership enough as premises?
It depends on what is secured and what the business needs. A dedicated private office under a written agreement in the US entity's name is much stronger than flexible hot-desk access. Your attorney should assess the specific arrangement against the business plan.
Does the US company need revenue before filing a new office petition?
No. A new-office petitioner does not need to be actively doing business at filing. It must show premises, the investment and ability to pay, and for L-1A a credible plan to support a managerial role within a year.
What happens if the office has not grown as planned after one year?
The extension may be harder to support, especially for L-1A, where USCIS examines whether the role is now primarily managerial given actual staffing. Counsel may consider options such as a different classification or timing, depending on the facts.
Can a new office petition be filed for an L-1B employee?
Yes. The L-1B new-office requirements are premises, qualifying-organization status and the financial ability to pay the employee and start doing business. The managerial-growth test does not apply, but the one-year initial limit does.
