L-1 New Office Operations
L-1 New Office Doing Business Requirement
How a newly established U.S. company moves from startup preparation to regular, systematic, and continuous provision of goods or services.
Direct answer
What the governing framework requires
A new office may begin before it has completed one year of U.S. business operations, but the first extension requires evidence that the U.S. entity has been doing business during the previous year. Doing business means regular, systematic, and continuous provision of goods or services and does not include the mere presence of an agent or office.
01 · Startup Phase
Formation and preparation should lead to commercial activity
Entity formation, leases, bank accounts, licensing, and equipment may be necessary startup steps.
Those actions should develop into actual provision of goods or services.
02 · Customers
Customer activity can demonstrate that the U.S. company is commercially active
Contracts, purchase orders, invoices, sales receipts, subscriptions, or service records can establish real operations depending on the business.
03 · Revenue
Revenue is useful evidence but no single dollar threshold defines doing business
The regulatory definition focuses on regular business activity rather than one fixed revenue amount.
Financial records should be evaluated together with the company's industry and stage of development.
04 · Continuity
One isolated transaction may not establish regular and continuous operations
The record should demonstrate ongoing business activity appropriate to the enterprise.
Recurring customers, continuing contracts, regular invoices, payroll, or other operating records can help establish continuity.
05 · Foreign Business
The multinational organization must continue operating outside the United States
The U.S. company's development does not eliminate the broader qualifying organization requirement.
Foreign doing-business evidence remains important at extension.
06 · Evidence
Maintain operational evidence throughout the first year
- Customer contracts
- Invoices
- Bank statements
- Sales records
- Vendor records
- Payroll
- Tax filings
- Licenses
- Service records
Questions and answers
Frequently asked questions
Must a new office have revenue immediately?
No fixed immediate revenue threshold appears in the regulation, but the company should develop into actual doing business.
Is incorporation enough to show doing business?
No. The regulation expressly excludes mere presence of an agent or office.
Do contracts help?
Yes. Genuine contracts and corresponding performance can be strong evidence of business operations.
Does one customer qualify?
The analysis depends on the nature of the business and whether activity is regular, systematic, and continuous.
Must the foreign company continue operating?
Yes, the qualifying organization generally must continue doing business in the United States and at least one other country.
Why is doing business critical at the first extension?
The extension regulation expressly requires evidence that the U.S. entity has been doing business during the previous year.
Case-specific review
Document operations throughout the first year
A review can identify whether the U.S. company's actual commercial activity is sufficient for the first extension.
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