IN THIS GUIDE · Sequence a founder’s transfer to a U.S. subsidiary that is already trading
Start with the L-1A eligibility and application overview
Confirm the relationship and that both entities trade
L-1A requires a qualifying relationship between the foreign employer and the U.S. entity: parent and subsidiary, branch or affiliate, established through ownership and control. A wholly owned subsidiary satisfies that on its face, and the corporate register, share certificates and consolidated financial statements prove it. Both entities must be doing business, meaning the regular provision of goods or services, for the whole period of the transfer. The Canadian company must therefore keep trading after the founder leaves; if the Canadian operation would wind down, the qualifying relationship collapses and the petition fails. The deciding corporate records should be dated close to filing and should explain any parent, affiliate, or subsidiary link without relying on a marketing description. A transfer can fail where the entities share a name but not actual ownership or control.
Count the year abroad and describe the duties honestly
The founder must have worked for the Canadian company for one continuous year within the three years before the petition, in an executive, managerial or specialized-knowledge capacity. As chief executive that condition is likely met, and payroll or dividend records with board minutes document it. The U.S. role is the harder part. In a four-person subsidiary, a chief executive who also drives the delivery van and leads trips is not primarily executive. The duty breakdown should show the percentage of time on setting strategy, approving budgets, hiring and directing supervisors, and acknowledge the operational tasks candidly while showing they are a minority.
Anticipate the small-company questions
USCIS looks closely at small entities to see whether the organizational structure can support a genuinely managerial position. Evidence that helps includes an organizational chart with the four U.S. employees, their job descriptions, a warehouse lease, sales records, tax filings and a plan to add a warehouse supervisor so the founder is not the first-line manager of nonprofessional staff. Managing a function can qualify where the function is essential and the founder exercises discretion over it, but a founder who mainly performs the function himself does not qualify. Seven years is the maximum total stay in L-1A.
What to ask the accountant before filing
Ask for consolidated statements showing intercompany transactions, because they demonstrate both the relationship and that each entity trades. Ask how the founder was remunerated in Canada, since a shareholder paid only through dividends needs the board minutes and role descriptions to prove employment rather than passive ownership. Ask whether the subsidiary has the cash flow to pay a U.S. salary consistent with an executive role. Finally, ask that the Canadian company appoint an interim manager and record it, so the record shows the Canadian business continuing under proper direction during the transfer.
Sources reviewed 2026-09-07. This guide covers a preparation focus; it is not an individual eligibility assessment.