Taxes on Foreign Investments Washington D.C. L-1 Expansion

1. Taxes on Foreign Investments in Washington, D.C. | Initial Corporate Formation and L-1 Visa Framework

The client, identified here as Mr. S, established a U.S. Entity in Washington, D.C. To serve as the operational headquarters for his North American business activities.Corporate formation was completed in accordance with the District of Columbia Business Corporation Act of 2010 (D.C. Official Code § 29-301.01 et seq.), ensuring lawful capitalization, governance, and asset holding authority.

Structuring a Qualifying L-1 New Office Petition

Mr. S qualified for L-1 classification as an executive of a foreign parent company under 8 U.S.C. § 1101(a)(15)(L) and 8 C.F.R. § 214.2(l).

The initial petition was structured as a new office L-1, requiring evidence of secured premises, a viable business plan, and executive control over U.S. Operations.

The corporate structure also allowed the U.S. Entity to lawfully acquire income producing assets while remaining compliant with federal immigration intent requirements.

2. Taxes on Foreign Investments in Washington, D.C. | Real Estate Acquisition and Investment Compliance

During the first year of authorized stay, the company acquired several residential and mixed use properties located within the District.All acquisitions were reviewed for compliance with local recording rules and federal tax exposure associated with taxes on foreign investments.

Real Estate Holdings and Management Arrangements

The properties were titled in the name of the D.C. Corporation, consistent with D.C. Official Code § 29-303.02, which permits corporations to own and manage real property.

A licensed property management firm was retained to handle daily operations, allowing Mr. S to maintain an executive level role rather than engaging in impermissible hands on activity.

From a tax perspective, rental income reporting obligations were analyzed under the Internal Revenue Code §§ 871, 882, and 1441, addressing withholding and reporting duties applicable to foreign owned U.S. Entities.

3. Taxes on Foreign Investments in Washington, D.C. | Business Acquisition Strategy Prior to Visa Expiration

As the U.S. Operations stabilized, Mr. S elected to diversify into the hospitality sector through acquisition rather than startup formation.This decision required careful alignment between business timing and immigration status.

Target Review and Asset Purchase Execution

A licensed business broker was engaged to identify suitable café businesses within the District and neighboring jurisdictions.

More than one hundred listings were reviewed, with financial statements, lease terms, and regulatory compliance evaluated under D.C. Consumer and business licensing rules.

Three candidate businesses were selected for in person review, after which one café was identified as strategically aligned with the company’s growth plan and tax profile, including projected taxes on foreign investments.

4. Taxes on Foreign Investments in Washington, D.C. | L-1 Extension Filing and Post Closing Documentation

The asset purchase agreement for the café was executed seven days before the expiration of Mr. S’s initial L-1 period.An L-1 extension petition was filed three days prior to expiration, allowing continued employment with the same employer under the 240-day rule pursuant to 8 C.F.R. § 274a.12(b)(20), while the extension was adjudicated in accordance with 8 C.F.R. § 214.2(l)(14).

Extension Approval without Request for Evidence

Following filing, additional documentation evidencing completion of the business transfer was proactively submitted.

USCIS approved the extension without issuing a Request for Evidence, confirming that the operational expansion satisfied executive capacity and viability requirements.

Parallel tax advisory services addressed depreciation, allocation of purchase price, and ongoing compliance with federal and District tax obligations applicable to foreign owned investments.

06 Jan, 2026