An E2 visa is a great way to live and work in the United States. The process of obtaining an E2 visa can be done by purchasing an existing business. There are a few things to keep in mind when doing this. First, the business must be a going concern. Second, the business must be at least 50% owned by the treaty investor. Third, the investor must have invested or be in the process of investing a substantial amount of capital into the business..
If you're looking to score an E2 visa by buying an existing business, it's important to remember that a profitable business will make the case for success much easier. An E2 visa is granted to foreign nationals who are looking to come to the United States and invest in a business. To qualify, the business must show that it has the potential to generate enough income to provide a living for the investor and their family.
While there's no guarantee that a profitable business will be approved for an E2 visa, it's certainly easier to make the case when the numbers are already in your favor. If you're thinking about investing in a business, be sure to do your due diligence and research whether or not the company is already generating profit and cash flow. It could be the key to making your E2 visa dreams a reality. Contacting a business broker who is experienced in E2 visas to buy the business will improve your chances to be approved. Determining the value of a business for an E2 visa application is not as simple as multiplying the price of the business by its profit margin. The company should also be able to show evidence of its net worth in its financial statements, as well as its ability to generate enough profit to cover all expenses, including the amount that you plan to pay you and your team.
If you are looking to obtain an E2 visa by purchasing an existing business, it is important to keep in mind that the business must not be marginal. There are a few ways to show that the business is not marginal, such as having a proven track record of financial stability and profitability, a well-established customer base, clients, and experienced staff.
One way to demonstrate that a business is not marginal is by providing evidence of its financial stability and profitability. This could include tax returns, profit and loss statements, and bank statements showing consistent growth over time. Another way to show that a business is not marginal is by having a well-established customer base. This could be demonstrated through marketing materials, customer lists, or sales records. Finally, another way to prove that a business is not marginal is by having experienced staff members in place. This could be demonstrated through resumes and employment verification.
A business that fails any of these criteria is likely to be considered a marginal business.
Last but not least, buying an already-running company can help you safeguard your finances because you can deposit the purchase price into an escrow account. It may be stated in the escrow agreement that, in the event of approval, the funds will be released to the seller. The money must be maintained in an interest-bearing account, and the funds can only be withdrawn if the visa is denied. If your application for an E-2 visa is rejected, you receive your money back. If your application for an E-2 visa is approved, the escrow money can be released to the seller.
The US government may doubt your capacity to turn the firm around and earn a profit if it is currently losing money unless you have relevant experience that increases the likelihood of that happening. The consular officer may doubt your capacity to manage the firm if you have no experience in the relevant field. This may be especially true if the firm is a specialized business. If you have no relevant experience but have some education or job history in a related field, you may still be able to apply for an E2 visa. However, you will have to show that your education and experience qualify you for the position. The number of employees is crucial. The officer may issue a refusal if the business does not have at least three full-time employees and consequently determines the business is marginal.
Therefore, it could be a good idea to purchase an established firm for the E-2 visa. This is particularly true if the company is successful, employs three or more people full-time, and the seller consents to placing the business acquisition amount in escrow. Our team at Onlybusinessplan.com is here to help you with the business plan related to this business takeover. We recommend you contact a seasoned immigration attorney to help you through the application process.
Sylvain Perret is a business professional who has been living in the United States since 2010. Along with his wife Daphnee, he has established several businesses in the country, including Integrity International Brokers, an agency based in Orlando where he works as a business broker, real estate broker, business consultant, and business plan writer. Over the years, he has helped numerous clients from around the world achieve success in their projects to create or take over a company in the United States with an E2 visa. He is highly knowledgeable about U.S. immigration issues and is the author of the book "S'expatrier aux USA grâce aux visas d'entrepreneurs," which is soon to be translated into English. Sylvain is also a Certified Business Intermediary (CBI) by the International Business Brokers Association and is regularly consulted on issues related to this field. At the age of 50, Sylvain chose to enhance his expertise in finance and strategy by pursuing a Master of Business Administration from the University of Central Florida. He successfully graduated in May 2023, adding a valuable finishing touch to his knowledge. He is active on LinkedIn and Twitter, where he shares his insights and experiences with a wider audience.
Last Updated on May 10, 2023 by Sylvain Perret