As structured, there is no parent-subsidiary relationship. Either the Ontario company acquires the U.S. shares, or the petition must show an affiliate relationship through the same individuals owning and controlling both companies in the same proportions.
Restructure or document the affiliate link before filing
An affiliate relationship exists where the same person or group owns and controls both entities, or where the ownership proportions match closely enough that each individual has approximately the same share and control of both. If the Ontario company is owned sixty-forty by two spouses and the New Hampshire entity is owned fifty-fifty, the mismatch will be noticed. The cleanest fix is a share transfer so that the Ontario company owns the U.S. entity outright, recorded in both registries with a dated resolution. If the family prefers personal ownership for tax reasons, align the percentages in both companies and document control through the operating agreement and bylaws. Whatever is chosen, the petition should include the formation documents, current ownership ledgers and a plain organization diagram. Restructuring after a request for evidence invites the objection that the relationship was created to fit the petition.
Hypothetical example: two siblings own a mushroom-growing company in Canada, while only one sibling paid for the U.S. distribution company. The first review should place both current share ledgers side by side and identify who has voting control, not just who advanced cash. The registers, subscription documents and governing agreements settle the relationship. Decide whether to make the Canadian company the owner or to document a genuine affiliate structure before signing the petition; a later transfer may correct the business arrangement but cannot prove that the required relationship existed at filing.
- USCIS — L-1A intracompany transferee executive or manager
- USCIS Policy Manual — L-1 evidence (Vol. 2, Part L, Ch. 8)
- 8 CFR 214.2(l) — intracompany transferees
- 8 U.S.C. 1101(a)(44) — managerial and executive capacity
- USCIS Policy Manual — employment authorization for certain spouses
- USCIS — fee schedule (G-1055)