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What makes a business a good E2 visa business?


For individuals interested in investing in and managing a business in the United States, the E2 visa can be an attractive option. The E2 visa allows individuals from certain countries to come to the US to operate and direct a business in which they have invested a substantial amount of capital. However, in order to qualify for an E2 visa, applicants must meet certain business requirements. In this article, we will explore the various E2 visa business requirements that investors should be aware of.

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The business must be profitable

One of the key requirements for E2 visa applicants is that the business they are investing in must be profitable. This means that the business must be generating income that is sufficient to support the investor and any dependents they might have. While there is no set level of profitability that is required, USCIS will use the financial statements of the business to evaluate whether it is considered viable and likely to generate sufficient income.

It is important to note that profitability is not just about generating revenue, but also about managing expenses effectively. This means that investors must have a solid understanding of the business’s financials and be able to make informed decisions about how to allocate resources. Profitability can also be impacted by factors such as competition, market trends, and changes in consumer behavior. Therefore, investors must be prepared to adapt and make changes to the business as needed in order to maintain profitability over the long term.

The business must have solid financial documentation

In order to prove that a business is profitable and viable, E2 visa applicants must provide solid financial documentation. This may include audited financial statements, tax returns, bank statements, and other relevant financial records. The level of documentation required will vary depending on the nature of the business and the investment amount.

It is important to ensure that the financial documentation provided is accurate and up-to-date. Investors should work with a qualified accountant or financial advisor to prepare the necessary documents and ensure that they are in compliance with US tax laws and regulations. In addition, investors should be prepared to answer questions from USCIS about the financials of the business and provide additional documentation as needed.

The business must have employees

Another important requirement for E2 visa applicants is that the business they are investing in must have employees. While there is no set number of employees that is required, the business must be more than a mere hobby or sideline. The purpose of the E2 visa is to encourage the creation of jobs in the US, so having employees is a key factor in demonstrating that the business is a viable enterprise.

Investors should be prepared to demonstrate that the employees are being paid fair wages and are receiving appropriate benefits. In addition, investors must be actively involved in the hiring and management of employees in order to ensure that the business is being run effectively and in compliance with US labor laws.

It is better if the buyer has experience in the industry

While there is no requirement that E2 visa applicants have prior business experience, having experience in the industry can be advantageous. USCIS is looking for evidence that the investor is likely to be successful in operating the business, and prior experience in the industry can be a strong indicator of this. In addition, having experience in the industry can help the investor to understand the market and to identify potential challenges and opportunities.

Investors who do not have prior experience in the industry should be prepared to do extensive research and seek out advice from industry experts in order to gain a deeper understanding of the business and its operations. This may involve attending trade shows, networking with other business owners, and conducting market research to identify trends and opportunities.

Franchised businesses are okay

Investors may be interested in purchasing a franchise as a way to meet the E2 visa business requirements. Franchised businesses are generally considered to be viable enterprises, as long as they are generating sufficient income and have employees. However, it is important to note that the investor must have a controlling interest in the franchise and must be involved in the day-to-day management of the business.

Investors who are considering purchasing a franchise should carefully review the franchise agreement and seek out advice from a qualified attorney to ensure that they fully understand their rights and obligations as a franchisee. In addition, investors should conduct due diligence on the franchisor to ensure that they have a strong track record of success and are committed to supporting their franchisees.

The lease should cover the visa length

Finally, it is important to ensure that the lease for the business covers the length of the E2 visa. USCIS is looking for evidence that the investor has made a substantial investment in the business and is committed to the long-term success of the enterprise. Therefore, having a lease that covers the length of the visa can be an important indicator that the investor is committed to the business.

Investors should work closely with their landlord to ensure that the lease is structured in a way that meets the requirements of the E2 visa. This may involve negotiating a longer lease term or including provisions that allow for early termination in the event that the visa is not renewed. In addition, investors should be prepared to provide USCIS with a copy of the lease agreement as part of their visa application.

In conclusion, the E2 visa offers investors an attractive opportunity to invest in and manage a business in the United States. However, in order to qualify for the E2 visa, investors must meet certain business requirements. These requirements include having a profitable and viable business, providing solid financial documentation, having employees, and, in some cases, having experience in the industry.

Additionally, having a lease that covers the length of the visa can be an important indicator of the investor’s commitment to the business. Working with a seasoned E2 visa business broker is the best advice for navigating this complex process, as their expertise can greatly increase the chances of obtaining an E2 visa and achieving one’s entrepreneurial goals in the US.

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Sylvain Perret

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.


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