Read the general pathway comparison overview
Incorporating a sole proprietorship creates a separate legal entity and may change the employment arrangement. Do not assume the earlier working history carries automatically into the new company, and do not assume it has been lost either. Both are conclusions, and both depend on the conversion documents, the effective dates, and what the person actually did before and after the change.
Document the conversion, then read it
Assemble the articles of incorporation, the asset transfer agreement, the share register, the effective dates, and the evidence of continuity in contracts, invoicing and payroll. Hypothetical example: a Rosemère consultant operated as a registered sole proprietor for four years, incorporated last spring, and now proposes a transfer to a U.S. entity. The questions to settle are whose employee this person was and during which months, what payroll or tax records exist for the corporate period, and how the client contracts moved across. Missing records get reconstructed from primary documents; they are never invented to fill a gap.
Test both routes against the same set of facts
L-1 depends on a qualifying corporate relationship between the entities, one continuous year of qualifying employment abroad within the relevant three-year period on the individual's timing, and a role that is managerial or executive, or based on specialized knowledge as defined. E-2 depends on the treaty nationality of the investor and of the enterprise, a substantial, committed, at-risk investment in a real operating and non-marginal U.S. enterprise, and the ability to develop and direct it. Ownership by itself selects neither route, and an available budget selects neither.
Name the open questions before restructuring further
Do not create a holding company to fit the facts into a preferred route before someone has read the documents that already exist: such a step affects nationality tracing for E-2 and the corporate relationship for L-1. Control is fact-specific and can exist below a majority, so flag any agreement giving another party a veto over decisions. Plan for the household in the same conversation: qualifying E and L spouses are employment-authorized incident to their valid status, with proper evidence, while the rule for children is different and needs its own review.
What else is on your mind?
Does being a business owner or director qualify me for L-1A?What employment history should an L-1 transfer review cover?What makes a new-office L-1A case different?How should an owner compare L-1 and E-2?Editorial source review: 2026-09-07. General preparation guidance, not an individual assessment.