Introduction
The E2 investor visa is a valuable opportunity allowing individuals to establish their businesses in the United States. However, one crucial requirement is that the business must be operational or become operational. Often referred to as the ‘real and operating’ provision. For many aspiring entrepreneurs, this requirement can seem like a formidable hurdle. Here we will explore various strategies to meet this requirement for E2 visa submission.
Operational Requirement of the E2 Investor Visa
The E2 visa is a nonimmigrant visa program that hinges on substantial investment in a U.S. business. This investment provides authorization to reside in the United States and actively manage the enterprise. The pivotal requirement is that the business must either be operational or nearly operational. Initiating a business from scratch and immediately applying for an E2 visa can be challenging. So, how can prospective entrepreneur-investors fulfill this requirement? Let’s delve into three effective options.
Option 1: Independent Business Setup
Regardless of your location, whether inside or outside the United States, you can own a business in the U.S.. Without requiring work authorization.
Even if you are not physically present in the U.S., you can take the following preliminary steps:
- Register your company
- Open a U.S. business bank account (if the U.S. bank allows it from abroad)
- Develop a comprehensive business plan, and make necessary business preparations
These initial activities can be put out without engaging in unauthorized work.
However, it’s important to note that while opening a U.S. bank account from abroad is feasible, it may entail substantial international bank transfer fees. This is why many investors choose to open a business account once they are in the U.S.
Option 2: Partnering with a U.S. Citizen or Green Card Holder
An alternative method to start a business in the U.S. is to form a strategic partnership with a U.S. citizen, green card holder, or someone with work authorization in the country. By doing so they can take charge of the operational aspects of the business. During the E2 visa application process, the primary E2 investor can assume a passive role. Allowing the U.S.-based partner to actively manage and operate the business. After E2 visa approval, the primary investor is required to assume an active role in the company’s operations. It’s crucial to remember that in partnership scenarios, the E2 applicant-investor should maintain at least a 50% ownership stake in the business.
Option 3: Acquiring an Existing Business
Purchasing an established business can be an appealing alternative to launching a new venture. Acquiring an existing business circumvents many logistical challenges and expedites the operational phase. Purchasing an existing one through a single transaction can meet the E2 visa requirements. Moreover, when buying an existing business, an escrow arrangement can be employed to safeguard the investment. An escrow account can hold the funds until the visa approval. Ensuring that the applicant is not left with an inoperative business or significant financial loss in the event of a visa denial.
Benefits of the E2 Visa
Enhanced Access to the United States: The E2 Visa offers citizens from select countries a streamlined path to enter the United States for up to five years without the need for a separate work visa. This is particularly valuable in light of the high visa rejection rates for tourist visas in certain countries, ensuring a smoother entry for those who seek to establish residency.
Work Flexibility: E2 Visa holders have the unique advantage of working for the business they invest in. They can engage in various activities related to their business venture. In essence, the E2 Visa functions as both a residence permit and a work permit.
Potential for Permanent Residency: The E2 Visa is under the category of a non-immigrant visa and doesn’t directly lead to permanent residency or citizenship. Entrepreneurs with growing businesses and substantial job creation have the opportunity to transition to an EB5 Visa from within the United States. This path enables investors to reside in the US without the extended waiting period typically associated with EB5 applications.
Family Inclusion: The E2 Visa extends the privilege of bringing along a spouse and dependent children under the age of 21 to the United States, fostering family unity during your business endeavors.
Tax Advantages: E2 Visa holders may be eligible for specific tax benefits, further enhancing the financial attractiveness of this visa category.
Renewable: The E2 Visa is subject to renewal and can be extended as long as the visa holder continues to meet the necessary requirements.
Access to the US Market: For entrepreneurs, the E2 Visa serves as a straightforward entry point to one of the world’s most dynamic and influential markets, granting access to the United States, a global economic powerhouse.
Educational Opportunities: The E2 Visa empowers investors to provide exceptional educational opportunities for their children within the United States. While technically non-immigrants, E2 family members are granted the right to pursue education at US institutions, enabling investors to pave the way for their children’s academic success and growth.
Meeting the operational requirement for the E2 investor visa is essential for individuals wanting to start a business in the United States. It’s imperative to seek guidance from an experienced immigration lawyer to determine the best approach based on your specific circumstances. Successfully navigating the requirements of the E2 visa and pursuing your entrepreneurial aspirations is indeed achievable with the right strategy.