USCIS issued policy guidance regarding existing stance on whether sole proprietorships may file an L-1 petition on behalf of its owner, clarifying that they may not. The guidance explained that, unlike a self-incorporated petitioner such as a corporation or limited liability company (LLC), a sole proprietorship does not exist as a distinct legal entity separate and apart for its owner. Therefore, a sole proprietorship may not file an L-1 petition on behalf of its owner. Note however, that while a sole proprietorship cannot sponsor its owners, the guidance notes that because a sole proprietorship may have employees, an L-1 petition filed by a sole proprietorship on behalf of an otherwise eligible employee, may be approvable depending on the facts presented.
USCIS also clarified its policy guidance on blanket L-1 petitions stating that a petitioning organization that fails to timely file an extension of an approved blanket L-1 petition is not required to wait before submitting a new blanket petition. However, if USCIS denies a blanket L-1 petition extension request, the petitioning organization must wait 3 years to file another blanket petition. Failure to timely file, however, does not impose that 3-year waiting period.
Please note that the above is for informational purposes only and does not constitute legal advice. For specific questions about how the updated L-1 policy guidance may affect your specific circumstances, please contact your team at D&S.