Author: visaadmin

Forming business partnerships creates opportunities for E-2 investors with limited capital. It also offers excellent option for potential partners looking for business opportunities in the United States.

However, using a partner’s investment incorrectly can lead to an E-2 visa denial.

Thus, it’s important to understand WHEN and HOW funds from a partner can help meet the E-2 visa requirements.

Here, we'll explore 3 common partnership options for E-2 visa.

We understand the challenges involved and are here to simplify the process for you. If you need help understanding any of our articles, please contact us. We provide assistance to investors, attorneys, franchise consultants, and business brokers.

Understanding the E-2 Visa with Business Partners

The E-2 visa is designed to promote genuine foreign investment into the United States, requiring applicants to make a substantial investment. When partners are involved, it's important to know whose funds qualify (count) toward the E-2 investment.

Three key points to understand about the E-2 visa in partnership scenarios include:

1. Qualifying Funds: Investment money must meet specific requirements to be considered qualifying for E-2 purposes.

For instance, if the total cost to purchase a business is $250,000, but only $50,000 meets the qualifying criteria for the E-2 visa, the investment considered for the visa would be just $50,000. The remaining $200,000, which doesn't meet the required criteria, would not count toward the E-2 investment eligibility.

2. Substantial Investment: The total investment must be "substantial".

While we won't delve into the specifics of how much is a substantial investment in this article, just know that only qualifying funds count toward fulfilling the substantial investment requirement. Conversely, non-qualifying funds do not count towards the substantial investment that an E-2 investor needs to satisfy.

3. Partner Contributions: Only certain types of partner contributions qualify, and not all will count toward the E-2 visa.

Generally, only a joint E-2 investor or a foreign investor from a treaty country can qualify their funds for E-2 investment. This will be explained in more detail in the three partnership structures.

What Are Qualifying Funds for the E-2 Visa?

To understand what qualifies as an E-2 investment, it’s crucial to differentiate between qualifying and non-qualifying funds. Below are the criteria that must be met for funds to qualify (count) toward the E-2 visa investment:

Criteria for Qualifying Funds

1. Legal Source of Funds: The funds must come from lawfully acquired source(s). Examples include:
   • Personal income from employment
   • Gains from stock investments
   • Proceeds from selling personal assets, such as real estate

2. Personal Possession of Funds: The E-2 investor must have personal possession and control over the funds before they are invested in the U.S. business, such as holding funds in the E-2 investor’s personal bank account.
3. Funds from Other Foreign Investors: Foreign investors not seeking an E-2 visa may contribute qualifying funds if they:

• Are citizens of a Treaty Country.
• Do not intend to reside in the U.S. with any other visa.
• Are not U.S. citizens.
• Are not U.S. legal permanent residents (green card holders).
• Are not living in the U.S. with another visa.

Non-Qualifying Funds

Funds that do not count toward the E-2 investment include:

• Money from illegal activities or funds that cannot be traced to lawful source.
• Money that was not held in the personal possession and control of the E-2 investor.
• Money that cannot be verified and traced to its lawful origin(s).
• Contributions from U.S. citizens or permanent residents.
• Partner contributions that fail to meet the criteria for qualifying funds (see above funds from other foreign investors).

Types of Partnerships and Their Impact on the E-2 Visa

Now that we've defined qualifying and non-qualifying funds, let's apply these definitions while exploring the 3 common partnership structures for E-2 visa applicants.

1. Joint E-2 Investor Visa Partnership with Another E-2 Investor

This arrangement involves two E-2 investors who co-own a U.S. business, with each bringing qualifying funds to the partnership.

Key Points:

• Both partners must be citizens of treaty countries.
• Each investor’s funds must come from legal, traceable sources.
• Each investor must own 50% of the business and contribute equal shares of qualifying funds.

Advantages:

• Both investors’ funds can count toward the E-2 visa investment.
• Each investor can bring their immediate family members to the U.S. under the E-2 visa.

Example:

Two investors from Canada each invest qualifying funds of $75,000 into a U.S. business, forming a total investment of $150,000. Both partners' funds qualify, and both can apply for the E-2 visa.

2. E-2 Investor Partnering with a U.S. Citizen, Green Card Holder, or U.S. Visa Holder

In this partnership, an E-2 investor teams up with a U.S. citizen or permanent resident. Although the U.S. partner can provide funds to help start or purchase the business, none of their contributions count toward the E-2 visa investment.

Key Points:

• The E-2 investor must contribute the majority of the investment.
• The U.S. partner’s funds do not count as qualifying funds for the E-2 visa.
• The E-2 investor must own at least 50% controlling ownership and hold the highest managerial position in the business.

Advantages:

• The U.S. partner may assist with essential business logistics, such as obtaining licenses and opening bank accounts, which can be challenging for E-2 investors who lack a Social Security Number or are not physically present in the U.S.

Example:

Tom, an E-2 investor, found a restaurant that costs $400,000 to purchase. He can invest $300,000 of his personal funds, but needs an additional $100,000. His U.S. partner, Jerry, provides the remaining funds. However, only Tom’s $300,000 will counts as a qualifying E-2 investment.

It's important to note that if the U.S. business partner's investment is too significant, the visa officer may determine the E-2 investor's qualifying funds have become too diluted, no longer meeting the "substantial" investment requirement for the E-2 visa.

With over 600 successful E-2 visa cases so far, our firm has deep insight into the investment balances that visa officers typically accept. We have a strong track record of navigating complex partnership structures to ensure our clients meet the substantial investment requirement. If you're unsure whether your U.S. partner's contribution is too large, contact our firm for expert guidance. We’ll help you structure the investment to maximize your chances of visa approval.

3. E-2 Investor Partnering with Other Foreign Investors

This partnership involves other foreign investors, who must be citizens of treaty countries. Each investor can contribute qualifying funds, and the collective amount can count towards the E-2 investment.

Key Points:

• All other foreign investors must meet the following criteria for qualifying funds and they:
  • Are citizens of a Treaty Country.
  • Do not intend to reside in the U.S. with any other visa.
  • Are not U.S. citizens.
  • Are not U.S. legal permanent residents (green card holders).
  • Are not living in the U.S. with another visa.

• The primary E-2 applicant must hold at least 50% ownership of the business.

Advantages:

• All other foreign investors’ contributions may count as qualifying funds.
• The group can pool resources to meet the substantial investment requirement.

Example:

Imagine a group of 10 investors, with five from Canada and five from the U.K., collectively investing in a U.S. business. One of the investors will apply as the primary E-2 visa applicant and relocate to the U.S. The other foreign investors’ and the E-2 applicants’, combined investments count toward the E-2 visa requirements, regardless of the specific amount each person contributes. However, it is advisable for the primary E-2 applicant to invest a substantial portion of their own funds to show a strong personal commitment to the business. The primary applicant must also hold at least 50% ownership of the business, while the remaining shares can be distributed among the other partners.

Unlike partnerships with U.S. citizens or permanent residents, where their contributions don't count toward the E-2 visa, investments from other foreign investors that meet the above conditions are considered qualifying funds.

Conclusion

When forming partnerships for an E-2 visa, it’s essential to ensure that all qualifying funds meet the visa’s requirements. The structure of your partnership—whether with another E-2 investor, a U.S. citizen, or multiple other foreign investors—will significantly impact how much of the investment qualifies toward the E-2 visa. It’s crucial to work with an experienced E-2 attorney to avoid potential pitfalls and maximize your chances of visa approval.

If you need guidance on your E-2 visa application or help structuring a partnership for E-2 visa purposes, our team is here to assist. Contact us. We have real world experience and insights.

Summary FAQ: How Much to Invest When Business Partners Are Involved

1. What is the minimum investment for an E-2 visa? There is no fixed minimum, but the investment must be substantial relative to the business. Typically, $100,000 to $150,000 could be considered sufficient for most small businesses.
2. Can my partner's funds count toward the E-2 visa investment? If your partner meets the criteria for “other foreign investor” who is from a treaty country or is a joint E-2 investor, then their funds may count as qualifying. However, contributions from U.S. citizens or permanent residents do not qualify.
3. What are qualifying funds for the E-2 visa? Qualifying funds must come from a legal source, be under the investor's control and possession, and be traceable through bank records to the lawful origin. Funds from illegal activities or untraceable sources do not qualify.
4. Can I partner with a U.S. citizen for my E-2 visa? Yes, but their contributions won’t count as part of the qualifying investment. The E-2 investor should provide the substantial majority of the qualifying funds.
5. What happens if my U.S. partner contributes a large amount? If the U.S. partner's contribution is too significant, it may dilute the E-2 investor's stake, jeopardizing the visa application.
6. Can I partner with multiple foreign investors for an E-2 visa? Yes, and their contributions may count as qualifying funds, provided they meet all E-2 visa requirements, and meet the criteria of “other foreign investors” who are citizens of treaty countries.

What is the Minimum Investment for an E-2 Investor Visa?

Securing an E-2 Investor Visa is an excellent way to move to the United States for financial opportunity, a new lifestyle, and stability. The E-2 Investor Visa allows individuals from treaty countries to start or purchase a U.S. business and work in it. For more details, see our E2 Visa FAQ, click here.

Before applying for the E-2 Visa, investors are required to make a committed investment. This means spending the investment first to demonstrate ownership of a real and operating business. U.S. Immigration wants to ensure that investors have genuine intentions and efforts for a successful business, and to bring economic benefits by hiring American workers.

However, this often raises the concern: What if I invest and it’s not enough, and my visa is denied?

Determining the appropriate investment amount is a crucial step to first discovering if the E-2 visa is right for you.

Tell Me How Much To Guarantee an E-2 Visa Approval

Investors often wonder about the minimum investment amount required to secure an E-2 visa. The visa requirements state that investors need to make a “substantial investment,” a broad term that feels very meaningless.

This lack of clarity leads many to Google for terms like “E2 visa minimum investment” or ask questions like, “Is $50,000 enough?”

You are not alone in the E-2 process. Our firm has successfully assisted over 600 E-2 investors. From our years of experience and success, we have developed effective E-2 investment strategies that minimize financial risk and maximize E-2 approval chances. We know what a strong E-2 investment amount should be.

Let us walk you through some examples in this article. By the end, you’ll have a clearer understanding of where to start and whether your investment budget is “substantial”.

What is a Substantial Investment?

Baseline Investment Amount

As you know, the E-2 visa requirements do not specify a fixed minimum investment amount.

However, a baseline investment of $100,000 is generally considered adequate for a decent E-2 application. An investment of $150,000 or more can make for a stronger application.

Let’s dig deeper on how this investment amount applies for a startup businesses and existing businesses.

For a startup business, the $100,000 investment should cover, but is not limited to, the following:

• Registering the business
• Obtaining necessary licenses and permits
• Securing a commercial lease (home-based offices are more likely to be denied)
• Purchasing inventory and supplies
• Purchasing business equipment
• Renovating or building out premises
• Hiring American workers
• Anything else relevant for the specific business to prove it is real and operational

For a more detailed list of common investment activities, sign up for our Ultimate E-2 Visa Guide.

For purchasing an existing business, the $100,000 investment should cover, but is not limited to, the following:

1. Purchase of 50% or more of the business, with the investor holding the highest managerial position.
2. Business is bought at fair market value.
3. Business can demonstrate strong financial performance to generate sufficient profits for the investor's family to live comfortably based on the investors ownership.
4. Business can show strong payroll to demonstrate the hiring of American workers.

If the investment amount cannot purchase a business that meets the 4 factors, then additional investments may be needed to improve its viability. Thus increasing the investment beyond $100,000.

Please note that the above baseline is based on our years of experience and deep understanding of the visa officer’s perspective. However, the E-2 visa has many requirements and factors, so we cannot guarantee that the baseline investment alone will ensure approval.

Factors Influencing Investment Amount

Different businesses have varying startup or purchase costs. For instance, a $100,000 investment might not be considered "substantial" for a high-end restaurant in New York City due to the high costs of prime real estate, upscale interior design, premium kitchen equipment, and the necessity for a well-trained staff. In a city like New York, these expenses can quickly exceed $100,000, making it insufficient to establish a competitive, high-quality dining establishment.

On the other hand, a $100,000 investment could be substantial for a food truck business in Texas or Florida. The costs associated with purchasing and outfitting a food truck are significantly lower than those for a brick-and-mortar restaurant. A food truck typically requires a smaller initial investment for the vehicle, kitchen equipment, permits, and initial inventory. Additionally, operating costs such as rent and utilities are minimal compared to a stationary restaurant, allowing a larger portion of the investment to go directly into the business. This amount can cover essential startup expenses and demonstrate the investor's commitment to the business. With careful planning and execution, a $100,000 investment in a food truck business can be sufficient to meet the E-2 visa requirements, provided it is backed by a solid business plan and meets all other criteria.

But I’ve Been Told $50,000 Can Work

While there are claims that an investment as low as $50,000 can secure an E-2 visa, such cases are exceptions rather than the norm. Lower investments increase the scrutiny of the application.

Investments lower than $100,000 can theoretically be sufficient but come with higher risks. Immigration officers might view low investments as marginal businesses (too small), which are less likely to grow or succeed, increasing the chances of visa denial.

Consider this, visa officers want to see financial commitment to ensure that the investor has taken all necessary means and more to ensure business success. The lower the investment, the more the visa officer may deem the business to be marginal (too small) for success.

For those interested in a low cost startup business such as IT services, consultancy, marketing, e-commerce, and etc. check out our video.

Increasing Your Chances of Approval

To build a strong E-2 application start with having the right expectation on the investment amount, consider these points:

• Aim for a general baseline of $100,000, which has worked well for many types of businesses.

• The actual investment amount should depend on the business type, location, and percentage of ownership.

• An investment lower than $100,000 even for low cost businesses generally faces a higher risk of denial.

• If purchasing an existing business with strong financial performance in profits and payroll, then the $100,000 can work.

• If purchasing an existing business with weak financial performance in profits and payroll, then expect to invest more the purchase price of the business which can lead to over $100,000.

• Consult with an immigration attorney who has lots of experience evaluating the strength of your investment and business for E-2 visa eligbility.

Still not clear on how much to invest? No problem! Just check out some of our real client examples.

Examples of Real Investments

• Interior Design & Renovation: Total Investment: $100,000
• Tutoring Franchise: Total Investment: $120,000
• Trucking Business: Total Investment: $116,000
• Dessert Shop: Total Investment: $117,063
• Home Repair: Total Investment: $158,000
• Restaurant: Total Investment: $175,000

For more client investment stories, click here.

Summary

Determining the right investment amount for an E-2 Investor Visa is nuanced. Consult with an experienced E-2 visa attorney to discuss the strength of your investment and the business you are interested in.

FAQs

What is considered a substantial investment for an E-2 visa? A substantial investment is an amount sufficient to cover all start-up or purchase expenses necessary to fully set up and develop the business to the point of being operational. Generally, investors should be prepared to invest $100,000 or more, depending on the business.

Can an investment of $50,000 secure an E-2 visa? While possible, an investment of $50,000 carries a higher risk of visa denial as it may be viewed as marginal. It's safer to consider a higher amount to improve approval chances.

Does a $100,000 investment guarantee E-2 visa approval? No, investing $100,000 or more does not guarantee visa approval. Immigration officers consider various factors, including whether the investment is appropriate for the specific business type.

What type of businesses are suitable for the E-2 visa? Any legitimate for profit enterprise can qualify, provided the investment is substantial and the business is capable of generating significant economic impact by hiring American workers.

Should I consult a professional for my E-2 visa application? Yes, consulting a professional with experience in E-2 visa applications can provide valuable insights and improve your chances of a successful application.

How We Can Help

Tailored Solutions for E-2 Visa Applicants

Our law firm specializes in providing in-depth knowledge and tailored solutions for E-2 visa applicants. We go beyond standard regulations to address unique business, visa, and logistical challenges.

1. Real Strategies: Proven strategies that have helped hundreds of clients achieve E-2 approval.

1. Expert Guidance: Our team has extensive experience with E-2 visas, offering step-by-step guidance.

1. Referral Network: Access to a network of professionals who understand the E-2 process.

Contact Us

The E-2 visa is a non-immigrant visa that allows foreign nationals from treaty countries to enter the U.S. to invest in and manage a business. One of the critical aspects of securing an E-2 visa is the amount of investment made in the U.S. enterprise.

In this article, we will discuss the E-2 investment amount for starting a new business.

For details on how much to invest for an existing business, click here

Understanding the E-2 Visa Investment Amount for Startup Businesses

No Fixed Minimum Investment

The U.S. Immigration law does not specify a fixed minimum amount for E-2 visa eligibility. This flexibility means the required investment can vary significantly depending on the nature of the business.

With no specific investment amount specified, investors are left to feel uncertain and unconfident about whether they are investing enough for E-2 visa approval. To provide more clarification, we’ve broken down the investment ranges and the likely strength of an E-2 visa application. Please note these are for reference only and not a guarantee. The E-2 visa has various requirements which we touch upon in this blog that are also considered in addition to the investment amount.

Investment Range: $100,000 to $150,000

$100,000 USD is possible for many business types, based on our many years of experience and obtaining over 600 E-2 visa approvals so far. However, $150,000 USD or more is generally viewed more favorably, depending on the business model.

If this investment amount sounds like too big of a commitment, keep in mind you don’t have to spend the full amount. Reasonable working capital left in the US business bank account can also count towards your investment amount.

Investment Range: $70,000 to $90,000

Investing in the range of $70,000 to $90,000 might be possible (depending on the nature of the business), but it's crucial to ensure that the investment is substantial enough to demonstrate the business's potential for success and ability to hire American workers with a livable wage. The reality is that many visa officers view this range as insufficient, unless the investor can provide credible proof that the business is already thriving and satisfies all E-2 visa requirements. Achieving this level of proof can be challenging, especially if the investor has a goal of obtaining the E-2 visa as quickly as possible.

Remember, it's crucial to work with an experienced E-2 visa attorney to strategize the business setup, development, and investment amount, before making any irrevocable decisions.

Investment Range: $10,000 to $70,000

With the advancement of technology, some businesses, such as e-commerce startups or low cost service businesses, can indeed begin with investments ranging from $10,000 to $70,000.

However, for E-2 visa purposes, such investments are often considered insufficient by many visa officers, increasing the likelihood of visa denial.

This investment range is typically seen as low and viewed as covering only bare minimum startup costs. Visa officers seek evidence of a commitment to future growth, which includes adequate working capital, hiring American workers, securing commercial premises, purchasing inventory, conducting marketing, and establishing necessary infrastructures. Generally, a larger investment is necessary to demonstrate this level of business operation and to be seriously considered by visa officers.

Conclusion

While there is no fixed minimum investment, aiming for $100,000 or more generally improves approval chances for many types of businesses. The lower the investment, the higher the risk of visa denial. From our years of experience and over 600 E-2 visa approvals so far, our firm understands how visa officers evaluate these criteria and can help clients build a strong E-2 application.

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Real Case Studies

Home Repair Business

• Total Expenses: $63,000
• Working Capital: $95,000
• Citizenship: Canada

A Canadian investor in a home repair business utilized $63,000 in startup expenses and supplemented with $95,000 in working capital, showcasing a total investment of $158,000.

Tutoring Franchise

• Total Expenses: $90,000
• Working Capital: $30,000
• Citizenship: Taiwan

A Taiwanese investor opened a tutoring franchise with $90,000 in expenses and $30,000 in working capital, making the total investment $120,000.

How We Can Help

Tailored Solutions for E-2 Visa Applicants

Our law firm specializes in providing in-depth knowledge and tailored solutions for E-2 visa applicants. We go beyond standard regulations to address unique business, visa, and logistical challenges.

1. Real Strategies: Proven strategies that have helped hundreds of clients achieve E-2 approval.
2. Expert Guidance: Our team has extensive experience with E-2 visas, offering step-by-step guidance.
3. Referral Network: Access to a network of professionals who understand the E-2 process.

Contact Us

The E-2 visa is a non-immigrant visa that allows nationals of treaty countries to enter the United States to invest in and manage a business. It is possible to qualify for the E-2 visa by purchasing an existing business or starting a new one.

In this article, we will discuss the investment amount for purchasing an existing business.

For details on how much to invest for a new startup business, click here

Understanding the E-2 Visa Investment Amount for Buying an Existing Business

No Fixed Minimum Investment

U.S. immigration law does not specify a fixed minimum investment amount for an E-2 visa. Instead, it requires that the investment be "substantial." Unfortunately, the term “substantial” lacks a clear numerical definition, making it difficult for investors to know exactly how much to invest. We understand that with tens of thousands of businesses available at varying prices, this ambiguity can cause significant stress and uncertainty.

Many investors worry about purchasing an existing business only to be denied the visa for not investing the right amount.

In this article, we'll explore some investment ranges for purchasing existing businesses to clarify how visa officers determine if an investment is substantial for an E-2 visa. By examining specific examples, we'll illustrate what constitutes a strong investment and what factors visa officers consider.

Key Considerations When Purchasing an Existing Business

Purchase Price, Financial Performance, and American Workers

The purchase price of an existing business is crucial but not sufficient on its own to meet E-2 visa requirements. When considering the investment amount, you MUST consider these two main factors:

1. Business Financial Performance: Determine whether the business generates sufficient profits for the E-2 investor and their family to live comfortably in the U.S. This factor is part of the E-2 visa requirements and visa officers will evaluate an existing business’ past performance to determine the E-2 investor’s potential income.
2. American Workers: Assess if the business can maintain and/or hire additional American workers, providing them with a livable wage. The E-2 visa aims to bring economic benefits to the U.S., so hiring American workers is essential.

Depending on the business's financial performance and payroll, additional investment beyond the purchase price may be necessary. While several factors determine E-2 visa eligibility, this article will focus on the above two main factors to help investors understand how much they should invest in an existing business.

Now let’s apply these two main factors (Business Performance and Job Creation) to the following investment ranges.

Existing Business with Purchase Prices of $100,000 or More

Purchasing an existing business with a purchase price of $100,000 or more, assuming it is the fair market value, could make for a substantial investment if:

1. Financial Performance: The business's financial performance over the past few years generates enough profits to allow a comfortable living for the investor and their family. This depends on the cost of living in the area where the investor and their family will reside and the number of household members. The chart below provides a general example.
2. American Workers: The business employs sufficient American workers. The employee payroll should demonstrate livable wage for the workers.

If these factors are met, then the business purchase price could be considered “substantial” and would make a promising E-2 visa application.

If these factors are not met, the business may be considered marginal (too small), and the investor may need to make additional investments to improve the business, increasing their investment beyond just the purchase price.

Businesses with Purchase Prices Below $100,000

From our years of experience evaluating thousands of businesses, many priced below $100,000 often have losses or mediocre profits. This does not mean they cannot qualify for the E-2 visa, but E-2 investors need to adjust their expectations regarding the investment amount.

Purchasing a business below $100,000 may not be considered a substantial investment if:

1. Financial Performance: The business’s financial performance over the past few years does NOT generate enough profit for the investor and their family to live comfortably in the U.S. Comfortable living depends on the cost of living in the area and the number of household members. The chart below provides a general example.

2. American Workers: The business does NOT employ a sufficient number of American workers or provide a livable wage for them. The E-2 investor is expected to create or maintain meaningful jobs for the U.S. labor market. What is considered meaningful jobs depends on a variety of factors, including the number of employees, wage levels, part-time or full-time workers, professional, skilled or unskilled occupations, etc.

If the business does not show strong financial performance or adequate employment of American workers, then it may be considered marginal and not qualified for the E-2 visa. In such cases, additional investments to improve the business will likely be necessary to present a viable E-2 visa case, increasing the total investment beyond just the purchase price.

ANNUAL INCOME FOR COMFORTABLE LIVING IN THE UNITED STATES

Conclusion

As you can see, due to these additional factors, the E-2 visa law cannot specify an exact investment amount. However, we have a clear methodology to evaluate whether an investment amount is sufficient for the E-2 visa. We have successfully applied these methods in over 600 approved E-2 visa cases so far.

Purchasing an existing business can be a viable path to obtaining an E-2 visa, but it requires careful consideration. If you'd like an evaluation of your investment amount for an existing business, we are here to help. Please contact our office to request a business evaluation.

How We Can Help

Tailored Solutions for E-2 Visa Applicants

Our law firm specializes in providing in-depth knowledge and tailored solutions for E-2 visa applicants. We go beyond standard regulations to address unique business, visa, and logistical challenges.

1. Real Strategies: Proven strategies that have helped hundreds of clients achieve E-2 approval.
2. Expert Guidance: Our team has extensive experience with E-2 visas, offering step-by-step guidance.
3. Referral Network: Access to a network of professionals who understand the E-2 process.

Contact Us

The E-2 Investor Visa provides Canadians with the opportunity to live in the United States while working and managing their own U.S. based business.

There are lots of questions that surround the E-2 visa. In this article, we’ll walk you through the submission process such as where to apply, how to apply, what forms are required, and visa fees.

Most importantly, we’ll highlight the investment process which is all the pre-work that needs to be done even before an E-2 application is prepared and submitted.

The following application and submission information is specific for Canadian citizens and legal residents of Canada.

• Where to Apply
• Submission Process
• After Submission
• Investment Process (Before Submission)
• Summary FAQ

Please note that each U.S. Embassy or Consulate has its own procedures and requirements. E-2 Visa submission procedures and processes are subject to change without any given notice by the U.S. Embassy or Consulate.

Where to Apply

Toronto U.S. Consulate

Canadians can apply for the E-2 Investor Visa at the U.S. Consulate in Toronto, which is specifically designated for handling E-2 visa applications. Once approved, Canadians can receive an E-2 visa valid for up to five years, allowing multiple entries into the United States during this period. This means that the E-2 visa for Canadians authorizes travel in and out of the U.S. without restrictions.

What About Other U.S. Consulate Locations?

All other U.S. Consulates in Canada do not process E-2 investor applications, except for E-2 dependent spouses and children, or employees filing separately from the primary E-2 investor applicant.

Can I Apply Inside the U.S.?

Applying within the U.S. is known as a Change of Status (COS). This process differs from applying for an E-2 visa at the U.S. Consulate in Toronto. There are significant differences that lead most Canadians to prefer applying in Toronto. For details about COS verses Consular visa processing, watch our video.

This article will focus on E-2 visa submission to the U.S. Consulate in Toronto.

Submission Process

The submission procedure for the E-2 Investor Visa involves several key steps outlined below. Before filing an E-2 application, the investor must first meet the E-2 visa requirements by making a qualifying buisness investment, as described in the section titled "Before Submitting the E-2 Application" in this article.

Completing the DS-160 Form

Once an applicant has completed their investment, the first step in the submission process is to fill out the Form DS-160, online non-immigrant visa application. This form typically requires details about your visa and U.S. travel history, education and work history, and, most importantly, information about your investment amount, expenditures, business details, and employees.

If an investment has not been completed through either starting a new business or purchasing an existing business, you will be unable to properly complete the business information section of the DS-160, and thus, preventing you from submitting the application form. It is crucial to ensure all information is accurate and up-to-date, as any discrepancies between your answers and the supporting documents can delay your visa processing or result in E-2 visa denial.

You should not submit the DS-160 form for your E-2 visa application, until you have made a business investment that meets the E-2 visa requirements. For more details on making a qualifying investment, please refer to the section titled "Before Submitting the E-2 Application" in this article.

Prepare and Submit Form DS-156E, Treaty Investor Application

Form DS-156E is used for the E-2 Investor Visa to demonstrate the applicant is making a substantial investment in a qualifying U.S. business by either starting a new business or purchasing an existing one. This form is typically submitted together with supporting documents for the E-2 investment.

Key Sections of DS-156E

Part 1: Information About the U.S. Enterprise

• Details about the U.S. business, including name, address, nature of the business, and proof of the enterprise's nationality.
• Information about the total investment amount and the applicant’s role in the business.

Part 2: Information About the Staff

• Information about the U.S. business personnel, such as managers and employees.

Part 3: Information About the Applicant

• Description of the applicant’s qualifications and how they are essential to the enterprise's operations.

Form DS-156E may seem straightforward with only three pages, but it is more complex than it appears. Completing sections such as "Total Investment" requires a deep understanding of what constitutes a substantial investment in relation to the business; the appropriate balance of remaining cash; and which equipment purchases count toward the investment (e.g., whether a vehicle purchase is included). There is significant preparatory work and understanding required to make an investment eligible for the E-2 visa before filling out this form. Additionally, any discrepancies between this form, the supporting documents, and the DS-160 can lead to visa delays or even denial of the visa application.

Pay the Visa Fee

The visa fee for the E-2 Investor Visa is $315 USD per person. For families, this fee will multiply by the number of applicants. For example, a family of four will need to pay a total of $1,260 USD (315x4).

Keep in mind that visa fees are subject to change, so please verify the current fee amounts before making payments.

Supporting Documents

Compile all necessary documents and evidence to support your E-2 application. This includes your DS-160 confirmation page(s), visa fee payment receipt, and any additional documents required by the U.S. Consulate, such as but not limited to:

• Passports
• Business registration documents
• Partnership agreement
• Shares/stock certificates
• Source of funds
• Receipts/Invoices of startup expenses
• Purchase agreement for purchasing existing business
• Bank statements
• Proof of payroll

For more examples, sign-up for the “Ultimate E-2 Visa Guide”, where you’ll receive our eBook containing a list of common supporting documents for the E-2 visa.

Prepare a Cover Letter and Table of Contents

The Toronto U.S. Consulate requires a cover letter explaining how the applicant's investment meets the E-2 visa requirements. Additionally, a table of contents outlining the supporting documents must be included in the application.

Submit the E-2 Visa Application Package

Submit the forms, cover letter, table of contents, and supporting documents to the Toronto U.S. Consulate, which only accepts digital submissions by email.

Disclaimer: Visa fees and submission procedures are subject to change. Always check the latest information on the U.S. Consulate's website before proceeding.

After Submission

Once you have submitted your E-2 visa application, the processing time can vary. Typically, it takes between 1-3 months for the U.S. Consulate in Toronto to review and process an E-2 application in most cases. The 1-3 months process includes:

Application Review

Consular staff will review your application to ensure all documents are complete and accurate. They may request additional information if needed. If they are satisfied, the Consulate will send you an invitation email to schedule a visa interview appointment. It may take between 2-4 weeks or longer to receive a reply from the consulate. Applicants will need to be patient.

Visa Interview Scheduling

If your application meets the necessary criteria, you will receive an email inviting you to schedule an interview appointment at the Toronto consular office. Note that interview dates are usually available one or more months into the future.

Visa Interview

During the interview, visa officers will assess your eligibility for the E-2 visa. Be prepared to discuss your investment, business plans, and personal background. After the interview, you will receive a response indicating whether your application is approved, denied, or requires further administrative processing.

Investment Process (Before Submission)

The E-2 visa requires that an investment be committed first. In simple terms, you need to actually invest your funds to start up a business or purchasing an existing business before submitting anything to the U.S. Consulate.

How To Get Started On The Investment Process?

1. Speak with an experienced E-2 Visa Attorney:

 Receiving proper guidance from the beginning is important. An experienced attorney can help you understand what qualifies as legitimate funding sources; how to transfer funds correctly; and other important details. Avoid common mistakes that could lead to E-2 visa denial.

Videos

• Two Essentials To Discuss With An E2 Attorney
• 3 Key Factors for E-2 Visa Approval
• Foundations To A Strong E-2 Application

Speak With Us – let us know your goals, get real-life strategies, get your questions answered. 

2. Determine the Right Investment Amount:

Make sure you have a substantial investment amount appropriate for the type of business, and have a clear understanding of how to allocate the investment spending to satisfy the E-2 visa requirements. Use the free resources below to learn how much to invest for the E-2 visa.

Reading Material

• Minimum Investment Amount for E-2 Visa Approval

Videos

• How To Get An E-2 Visa Without Spending A Fortune
• What Is A Substantial Investment?

3. Choose the Right Business:

Decide on a business to start-up or purchase. From evaluating thousands of businesses, Attorney Bobby Chung has developed a four factor formula to determine ideal business models for E-2 visa eligibility. You can find out what these four factors are in the links below.

Reading Material

• What Businesses Qualify for the E-2 Visa?
• Franchise Business for E-2 Visa

Videos

• 4 Must Have For Any E-2 Business
• Retail versus Non-Retail Business for E-2 Visa

Start-up Businesses: We assess start-up business models and provide feedback on how to make them qualify for the E-2 visa using our four-factor formula.

Existing Businesses: We evaluate the financial performance of existing businesses, growth potential, and offer insights into their eligibility for the E-2 visa or suggest improvements to meet E-2 visa requirements based on our four-factor formula.

4. Make the Investment:

Allocate the spending of funds for the business.

For a start-up business, visa officers seek evidence of a commitment to future growth, such as adequate working capital, hiring American workers, securing commercial premises, purchasing inventory, conducting marketing, and establishing necessary infrastructures. Generally, a substantial investment is necessary to demonstrate this level of business operation and to be seriously considered by visa officers.

For an existing business, this means having a purchase agreement and proof of funds committed to the business acquisition. Depending on the business performance and financial strength, the visa officer may also expect to see additional investments to make business improvements and demonstrate future growth potential.

Check out our fantastic video that offers a detailed walkthrough of the E-2 process, featuring one of our Canadian clients.

In this video, we explore common concerns and discuss three major challenges that Dave, our client, encountered—challenges that many investors face. We also share practical solutions to help you overcome these hurdles.

Reading Material

• Frequently Asked Questions About The E-2 Visa

Video

• Canadian Client Case Study: Full Walk Through On The E-2 Visa Process

All Investment Funds Must Come from Qualifying and Traceable Sources (NO CASH)

The source of your investment funds may be scrutinized closely. Funds must be obtained legally, and you should be prepared to provide clear documentation proving their origin. This could include bank statements, tax returns, asset sales, and/or evidence of business profits.

How Do I Start or Purchase a Business if I am Not in the United States?

When you are ready to make an investment and have received full guidance from an experienced E-2 attorney, you can begin by visiting the United States to establish a physical business presence or search for and purchase an existing business. Canadians may seek entry into  the U.S. with their Canadian passport as B-1 Business Visitors.  Canadians normally do not need to apply for a visitor’s visa. While entering as a B-1 business visitor allows you to conduct business set-up activities, it does NOT authorize you to work, until you receive the E-2 visa. It is crucial to clearly communicate to the border CBP officers your intention to make a business investment and then depart the U.S. to apply for the E-2 visa with the U.S. Consulate to avoid the risk of being denied entry into the U.S.

Conclusion

The E-2 Investor Visa process for Canadians requires careful preparation and attention to detail. The right E-2 attorney can help you properly implement and optimize the business investment to satisfy the E-2 visa with actionable real-life strategies.

Get started with us – share your goals and find out how to make a strong investment for the E-2 visa

Summary FAQs

How long is the E-2 visa valid for Canadians?

The E-2 visa for Canadian applicants is valid for up to five years, allowing multiple entries into the United States during this period.

What is the visa fee for the E-2 application?

The consular visa fee is $315 USD per person. For a family of four, the total cost would be $1,260 USD.

Where should Canadians apply for the E-2 visa?

Canadians should apply with the U.S. Consulate in Toronto, which handles all E-2 visas for Canadian investors.

How long does the E-2 visa processing take?

The E-2 applicant must first make an investment.  The investment process can take between 2-5 months or  more for many of our E-2 clients. The time it takes will depend on the individual and how quickly they complete their investment process.

After submitting the E-2 application, the Toronto U.S. Consulate’s processing time usually ranges between 1-3 months in most cases, depending on the completeness and accuracy of the application, and the Consulate’s workload at the time you apply. Generally, the Toronto Consulate is one of the most efficient and faster U.S. Consulates to process E-2 applications in our experience.

What documents are required for the E-2 application?

Required documents include the DS-160 confirmation, visa fee receipt, Form DS-156E, Cover Letter, Table of Contents and supporting documents, including biographic documents, business plan, documents evidencing proof of funds, receipts/invoices/contracts evidencing investment expenditures, and any additional forms specified by the U.S. Consulate.

How do I get started?

Speak with an attorney, determine your investment amount, select a business, and then make your investment.

What should I expect during the E-2 visa interview?

During the interview, Consulate Officers will evaluate your E-2 visa eligibility based on your investment, business plans, and background. Be prepared to discuss details provided in the DS-160 and DS-156E as well as any unique challenges to your case and solutions to overcome them. Your E-2 attorney should help you prepare for the visa interview.

Please Note: This blog is intended solely for informational purposes and should not be regarded as legal advice. As always, it is advisable to consult with an experienced immigration attorney for personalized guidance based on your specific circumstances.

Starting a business in the United States can be straight forward even for non-resident foreign nationals in certain circumstances. There are even some scenarios where you would not need to visit the U.S. to establish a business.

If you plan to visit the U.S. to form a business or to live in the U.S., then you’ll also need to consider the right visa. We will discuss the appropriate visa options, and how to visit the U.S. as a business visitor for starting a business.

5 Steps to Starting a Business for Non-Resident Foreign Citizens

1. Decide on a Business Structure:

The first step in starting a business in the U.S. is to decide on the most suitable business structure for your venture. Common options for non-resident foreign citizens include:

Limited Liability Company (LLC): An LLC offers flexibility, limited liability protection, and pass-through taxation. It's a popular choice for small businesses and startups.

Corporation: A corporation provides limited liability protection and allows for the issuance of stock, making it ideal for businesses seeking to raise capital or go public. There is the C Corporation and S Corporation. It’s important to note that non-residents foreign citizens are not permitted to own S Corporation, until residing in the U.S. for at certain period of time.

Partnership: A partnership involves two or more individuals or entities sharing ownership and management responsibilities. It's commonly used for professional practices or joint ventures.

Consider consulting with a legal or tax advisor to evaluate the pros and cons of each business structure and choose the one that best suits your needs and long-term goals.

2. Register the Business:

Once you've chosen a business structure, you'll need to register your business with the appropriate authorities. The registration process varies depending on the state where you plan to operate. Generally, you'll need to:

File formation documents, such as:

• Articles of Organization for an LLC or Articles of Incorporation for a corporation
• Secretary of State or other relevant state agency.

It's important to research the specific requirements and procedures for business registration in the state where you intend to conduct business.

3. Apply for an Employer Identification Number (EIN):

An Employer Identification Number (EIN), also known as a Federal Tax Identification Number, is a nine-digit number issued by the Internal Revenue Service (IRS) to identify your business for tax purposes. Even if your business doesn't have employees, obtaining an EIN is necessary for:

• Opening a business bank account.
• Filing federal and state taxes.
• Hiring employees in the future.
• In some cases, applying for appropriate business license(s) and permit(s)

You can apply for an EIN online through the IRS website, and the process is free of charge. If you want professional assistance with filing an EIN, a business attorney or a tax expert such as, Certified Public Accountant (CPA) can assist with the application.

4. Apply for an Individual Taxpayer Identification Number (ITIN), if Needed:

If you don't have a Social Security Number (SSN) or are not eligible to obtain one, you'll need to apply for an Individual Taxpayer Identification Number (ITIN).

It is usually not necessary to have an SSN to start a business. However, some businesses may require an SSN for the purpose of obtaining certain business license(s) or permit(s). If a business license or permit needs an SSN, then it may be possible to use an ITIN as an alternative, depending on the city, state and federal authorities.

To apply for an ITIN, you'll need to complete the Form W-7 and submit it along with supporting documentation, such as a valid passport or other identification documents to the IRS. It's important to note that an ITIN is for tax purposes only and does not confer any immigration status.

If you want professional assistance with applying for an ITIN, a tax expert such as, Certified Public Accountant (CPA) can assist with the application.

5. Open a U.S. Business Bank Account:

Opening a U.S. business bank account is essential for business-related transactions such as purchases and receiving payments. As a non-resident foreign citizen, you may encounter additional requirements or restrictions when opening a bank account in the U.S.

Some banks may require you to have physical presence in the U.S., such as a registered office (business premise) or a representative who can visit the branch in person. Additionally, you'll need to provide documentation to verify your identity and business ownership, such as your EIN, entity formation documents, and proof of address.

Research different banks and their account options to find one that caters to the needs of U.S. businesses owned by non-resident foreign citizens and offers suitable features and services.

If you hold an account with a bank that operates internationally, you may be able to open a U.S. business account remotely, bypassing the need for physical presence.

Do you need a visa to start a business in the U.S.?

In general, no, you don’t need a U.S. visa to start a business in the U.S. However, depending on your goals, such as whether you want to live in the U.S. or you just need to temporarily visit the U.S., will determine whether you need a visa.

Temporarily Visiting the U.S. to Start U.S. Business

For foreign nationals who do not intend to live in the U.S. and are able to operate the business remotely from abroad, a U.S. visa may not be required. However, if you plan to visit the U.S. for business-related activities such as opening a U.S. business bank account or scouting for business locations, you will need to enter the U.S. as a B-1 Business Visitor or with the ESTA Visa Waiver Business (WB). Most people achieve this by obtaining a B1/B2 Visitor’s Visa or an ESTA Visa Waiver travel permission for certain nationals. It's crucial to enter as a B-1 or WB business visitor, and not as a B-2 or WT pleasure visitor. As business visitor, foreign nationals are permitted to engage in certain business activities in the U.S., including investing-in or setting-up a business, but may NOT to work in the business.

Intending to Live Inside the U.S. and Work in the U.S. Business

For foreign nationals who wish to reside in the U.S. and actively work within their U.S. business, a common visa option is the E-2 Investor Visa. The E-2 visa allows foreign business owners to reside in the U.S. and legally work within their U.S. business. Additionally, the foreign investors may bring their spouse and unmarried children under age 21, as E-2 dependents. You can find more information about the E-2 visa option:

https://e2visalawyer.net/visa-resource-center/

Summary

For foreign nationals, starting a U.S. business can mean tremendous financial opportunities. Before taking actions, it’s crucial to understand the U.S. visa requirements and implications, depending on your goals. Whether you plan to operate the business remotely or reside in the U.S. and work within your business, there are specific visa options to consider.

For those intending to apply for the E-2 investor visa, it's essential to proceed with caution. Before taking any of the initial steps, it's strongly advised to consult with an experienced E-2 visa attorney. The setup of your business must follow the E-2 visa requirements from the outset. Incorrect business structures or improper fund transfers to the U.S. business account could potentially jeopardize your E-2 visa case. Therefore, seeking guidance from a knowledgeable reputable and knowledgeable attorney specializing in E-2 visas is crucial to maximize your chances of success. With proper planning and legal guidance, you can embark on your journey to start a successful business in the United States.

With the introduction of Portugal into the E-2 treaty country list under the AMIGOS Act signed by President Biden in December 2022, Portuguese citizens now have a unique opportunity to pursue their entrepreneurial ambitions in the United States. As of May 2024, after a delay in implementation, the U.S. officially opens its doors to Portuguese investors under the E-2 Visa Program. This development presents a significant opportunity for those looking to establish and operate businesses in one of the world’s largest and most dynamic markets.

Understanding the E-2 Investor Visa

The E-2 Investor Visa allows individuals from treaty countries to live and work in the U.S. by investing a substantial amount of capital in a U.S. business. While the exact amount of investment required is not strictly defined, it must be sufficient to ensure the successful operation of the business. The investment must be in a real operating enterprise, and speculative or idle investments do not qualify.

Benefits of the E-2 Visa

1. Long-term Stay: The E-2 visa is initially valid for up to five years and can be extended indefinitely, as long as the business continues to operate and meet all requirements.
2. Work Authorization: Not only does the visa holder gain the right to work in their own business in the U.S., but spouses of E-2 visa holders also gain work authorization, providing additional support and flexibility for families.
3. Travel Flexibility: E-2 visa holders can travel in and out of the U.S. with fewer restrictions, making it easier to manage business operations both domestically and internationally.

Key Requirements for Portuguese Applicants

1. Substantial Investment: The investor must make a substantial capital investment in a bona fide enterprise in the U.S. There is no minimum amount specified, but generally, investments of less than $100,000 may be scrutinized more closely unless the nature of the business involves less capital.
2. Control of the Investment: The investor must control the funds, and the investment must be at risk in the commercial sense. Loans secured with the investment enterprise are not allowed.
3. Real and Operating Enterprise: The investment must be in a real operating enterprise. Passive investments like real estate purchases, unless part of a larger active business, do not qualify.
4. Capability to Generate More Than Enough Income: The enterprise must have the capacity to generate significantly more income than just to provide a living to the investor and family, or it must have a significant economic impact in the U.S.
5. Nationality Requirement: The primary investor must hold Portuguese citizenship.

Steps to Apply

1. Develop a Business Plan: This is crucial and must detail how the business will meet the requirements of the E-2 visa. It should include financial projections and a clear path to profitability.
2. Investment and Business Setup: Before applying for the visa, the applicant must make the investment and begin the business setup. This may include purchasing equipment, signing a lease, etc.
3. Visa Application Process: The application includes filling out relevant forms, preparing a comprehensive package of documents including the business plan, proof of investment, and evidence of business setup, and attending an interview at a U.S. consulate or embassy.

Navigating Challenges

While the E-2 visa offers many opportunities, there are challenges as well. These include proving the legitimacy of funds, managing a business in a foreign country, and understanding and adhering to U.S. laws and regulations. It is highly recommended to consult with immigration and business professionals to ensure compliance and to streamline the visa application process.

Conclusion

For Portuguese entrepreneurs eyeing the vast American market, the E-2 Investor Visa represents a flexible and dynamic pathway to business development and growth in the U.S. With the right preparation, investment strategy, and legal guidance, Portuguese citizens can now leverage this opportunity to expand their entrepreneurial horizons and potentially create lasting impacts on both the U.S. and global economies.

Please Note: This blog is intended solely for informational purposes and should not be regarded as legal advice. As always, it is advisable to consult with an experienced immigration attorney for personalized guidance based on your specific circumstances.