Choosing the right business is critical for a successful E-2 visa application. While almost all types of businesses can qualify for an E-2 visa, certain types are more likely to meet the specific requirements and help you establish a compelling case. This blog will explore the key considerations for selecting an E-2 visa-eligible business, focusing on investment requirements, business activity, and economic viability.
Substantial Investment and At-Risk Funds
To qualify for an E-2 visa, you must make a substantial investment in a U.S. business. The term “substantial” is not defined by a specific dollar amount, but it generally means an investment significant enough to ensure the investor’s commitment to the enterprise.
Service-oriented startups with low initial costs, like consultancies, might struggle to meet this requirement. In such cases, purchasing an existing business or choosing a business with higher startup costs can help meet the substantial investment criteria more easily.
Active For-Profit Business
The E-2 visa requires that the business be an active, for-profit enterprise. This excludes non-profit organizations and passive investments, such as real estate holdings that do not involve active management. The business must engage in some form of commercial activity aimed at generating profit. This means that businesses that are purely passive or those that do not require active day-to-day management are unsuitable for the E-2 visa.
Businesses with higher operational demands and regular transactions are more likely to meet the active business requirement. Examples include retail operations, manufacturing units, or franchises that involve continuous activity and management oversight.
Avoiding Marginal Enterprises
One critical requirement for an E-2 visa is that the business cannot be marginal. A marginal enterprise is defined as one that does not have the capacity to generate more than just enough income to provide a minimal living for the investor and their family.
To demonstrate that a business is not marginal, it is advisable to choose businesses with strong earning potential and a clear plan for growth. Businesses that require hiring employees are particularly advantageous, as they show a broader economic impact. For instance, a restaurant or a retail store that plans to hire multiple staff members would be a more compelling case than a small consultancy with minimal revenue and no job creation.
Ideal E-2 Visa Businesses
Given these requirements, ideal businesses for the E-2 visa often include those with high startup costs, active daily operations, and significant growth potential. Here are some examples:
- Franchises: These often come with built-in brand recognition, operational support, and a clear path to profitability. The initial franchise fee, along with the cost of setting up the business, typically ensures that the investment is substantial.
- Manufacturing Units: These businesses often require substantial investment in equipment and facilities, making it easier to meet the substantial investment requirement. They also usually have a higher potential for job creation.
- Retail Stores: Retail businesses involve continuous operations, inventory management, and customer interactions, fulfilling the active business requirement. They also have potential for growth and job creation.
- Tech Startups: If well-funded, tech startups can be a good option, especially if they involve significant initial investment in technology and personnel.
Conclusion
Selecting the right business for an E-2 visa is crucial to meeting the visa’s requirements and ensuring a successful application. The ideal business should require a substantial investment, be an active for-profit enterprise, and have the potential to generate significant income and create jobs. By carefully considering these factors, you can increase your chances of obtaining an E-2 visa and successfully establishing your business in the United States.
For guidance on applying for your E-2 visa, contact SRR Law Group LLC at 507-580-7374 or stacey@srrlawgroup.com to schedule a consultation. Our experienced immigration attorneys can help you navigate the visa process and address any issues that may arise.
Want to read more? Read our comprehensive overview of the E-2 visa process.
