In September 2025, the US added a $100,000 fee to new H-1B petitions for workers outside the US. Combined with the yearly lottery, the H-1B is now expensive and uncertain. So business owners are asking: L1 visa vs H1B, which is right for me?
If you run a business in India and want to open a branch in America, here is the short answer, and why the L-1A visa is often the smarter route.
Quick answer: If you own or manage an operating business outside the US, the L-1A is usually the better choice in 2026: no lottery, no $100,000 fee, no degree requirement, your spouse can work, and a direct green card path through EB-1C.
What changed with the H-1B in 2025–2026
- $100,000 fee on new H-1B petitions for people outside the US, on top of normal filing fees. The fee has faced legal challenges, so its future is uncertain.
- A lottery that favours higher salaries. Only 85,000 new H-1B visas a year, and from 2026 selection is weighted by wage level.
- Companies are shifting to L-1. Indian IT firms have sharply cut H-1B registrations, and the L-1 is a leading alternative because the fee does not apply to it.
L1 visa vs H1B: side-by-side comparison
The L1 visa lets a company outside the US transfer a manager or executive (L-1A) or specialised employee (L-1B) to a related US company. Under the L-1A new office route, you can set up a brand-new US company and transfer yourself to run it.
| L-1A visa | H-1B visa | |
|---|---|---|
| Lottery | No | Yes, every year |
| $100,000 fee | Does not apply | Applies to most new petitions from abroad |
| Degree required | No | Yes |
| Start your own US company | Yes, new office route | Very difficult |
| Maximum stay | 7 years | 6 years |
| Spouse can work | Yes, on L-2 | Only in limited cases |
| Green card route | EB-1C, no PERM | Usually PERM; long backlogs for Indians |
H1B vs L1: which is better for business owners?
Think about who controls the visa. With an H-1B, a US employer you don’t own must offer you a job, register you in the lottery and pay the $100,000 fee if you are outside the US. If you are not selected, you wait another year. With an L-1A, your own company is the sponsor: you choose when to file, you control the US business, and your eligibility comes from the experience you already have running it.
In short: the H-1B is built for employees hired by someone else’s US company. The L-1A is built for business owners expanding their own company.
6 advantages of the L-1A visa for business owners
- No lottery, no cap. Your case is decided on its merits, and you can file any month of the year.
- No $100,000 fee. You pay the normal USCIS fees and put the rest into your US business. See our L1 visa cost guide.
- You build your own US company. You don’t need a US employer. You create one.
- No degree required. What counts is at least one year as a manager or executive in your company.
- Your family benefits. Your spouse can work in the US on an L-2 visa, and children under 21 can study there.
- A faster L1 visa to green card path. L-1A managers can apply under EB-1C, with no PERM labour certification and usually a shorter wait for Indians than EB-2 or EB-3.
L1 visa requirements: do you qualify?
- ☐ You run a real, operating business outside the US
- ☐ You have worked there for at least 1 continuous year in the last 3 years
- ☐ Your role is managerial or executive
- ☐ The US company will be its branch, subsidiary or affiliate
- ☐ You can fund a US office lease and first-year operations
Not sure? Try our free L1A eligibility check.
L-1A new office: what USCIS checks
A new US company gets a one-year first approval. USCIS expects a real physical office (not a virtual one), a realistic business plan, proof of funding, and a staffing plan. At extension, it checks that the business actually grew.
Since August 5, 2026, USCIS can deny an incomplete petition without first sending a Request for Evidence (RFE). Your filing must prove everything on day one.
Real Case study: How an Ahmedabad IT founder opened his US office on an L-1A
The business: Rahul Kumar Sampatlal Jain is the Founder and Director of Softedge Infotech Pvt Ltd in Ahmedabad. The company provides software development, AI/ML, cloud and DevOps, cybersecurity, data analytics and IT staffing services, with an annual turnover of ₹2.5 crore and a team of 7 in India.
The goal: Rahul wanted to serve US clients directly by opening a US branch and running it himself.
Why L-1A, not H-1B: As the owner of the company, Rahul was not an employee waiting for a US job offer. The H-1B would have meant finding an unrelated US employer, entering the lottery and, from abroad, facing the $100,000 fee. The L-1A new office route let his own company sponsor him.
What we did:
- Formed Softedge Infotech Inc. as the US company related to the Indian parent
- Set up a working office in Bowling Green, Kentucky, a real physical premises as USCIS expects for a new office
- Prepared a business plan for the US operation, built on the Indian company’s track record
- Defined his US role as Executive Director, leading IT consulting and software development
- Prepared and filed the complete I-129 L-1A new office petition
The result: USCIS approved the L-1A new office petition, clearing the way for Rahul to lead Softedge Infotech Inc. from its Bowling Green office as Executive Director. Next comes growing the US team before the one-year extension, with the EB-1C green card route open later.
The takeaway: A small, established Indian company with a real track record, even with a team of 7, can qualify for the L-1A. What matters is a genuine business, a real US office, a credible plan and a true executive role.
How US Area Immigration Services helps
- Free eligibility assessment of your business and role
- US company setup and office, plus a USCIS-ready business plan
- Complete I-129 petition, with premium processing available
- Interview prep, extension and EB-1C green card support
Ready to compare your options? Book a free L1A consultation and find out in one call whether the L-1A visa is right for your business.
Frequently asked questions
Is the L1 visa better than the H1B?
For business owners and managers moving within their own company, usually yes: no lottery, no $100,000 fee, no degree requirement and a faster green card route.
Does the $100,000 fee apply to the L1 visa?
No. It applies only to certain new H-1B petitions.
Can I start a new company in the USA on an L1 visa?
Yes, through the L-1A new office route. The first approval is for one year.
Can L1 visa holders get a green card?
Yes. L-1A managers and executives can apply under EB-1C, with no PERM, and their spouse and children are included.
How long does the L1 visa take?
With premium processing, USCIS responds within 15 business days. Company setup and the consular interview add time.
Sources
This article is general information, not legal advice. Immigration rules and fees change; check current USCIS guidance for your situation.