Author: visaadmin

Moving from a business idea to E-2 visa approval is a process that rewards careful planning and clear evidence; this guide walks an applicant through each essential step so they can prepare with confidence.

Understanding the E-2 visa: who qualifies and what it allows

The E-2 Treaty Investor visa is a nonimmigrant classification for nationals of countries that maintain a qualifying treaty of commerce and navigation with the United States. It allows an investor to enter and work in the U.S. to develop and direct a business in which they have invested a substantial amount of capital.

Key requirements an applicant should know:

• Treaty nationality: The principal investor and any employees under E-2 must be nationals of a country that has an E treaty with the U.S.; the U.S. Department of State maintains the treaty list and visa guidance at travel.state.gov.
• Substantial investment: There is no fixed dollar amount, but the investment must be substantial relative to the cost of the enterprise and sufficient to ensure its successful operation.
• Bona fide enterprise: The business must be a real, active commercial or entrepreneurial undertaking producing goods or services for profit.
• Investor role: The applicant must be coming to the U.S. to develop and direct the enterprise (typically by owning at least 50% or possessing operational control).
• Marginality: The enterprise cannot be marginal; it must generate more than enough income to provide a minimal living for the investor and family, or it must have a significant economic impact in the U.S., generally evidenced by job creation.

Step 1: Confirm eligibility and choose the correct application route

Before committing funds, an applicant should confirm that they hold a qualifying treaty nationality and decide whether to pursue consular processing abroad or file a petition inside the U.S.

• Consular processing: Most applicants apply for the E-2 visa at a U.S. embassy or consulate abroad using the DS-160 nonimmigrant visa application and an interview. The Department of State provides instructions for the DS-160 at DS-160.
• Change of status or extension: An applicant already in the U.S. on another nonimmigrant status may file Form I-129 with USCIS to request E-2 classification. USCIS information on Form I-129 is available at uscis.gov/i-129.

Step 2: Choose and structure the business for visa success

Choosing the right business structure and ensuring it meets E-2 requirements are foundational steps. The enterprise should be active and capable of growth.

Practical matters to decide early include business type (LLC, corporation, partnership), ownership percentages, and management roles. If the investor will not be the day-to-day manager, documents should clearly show how they will direct operations.

Applicants should avoid arrangements that look passive—mere portfolio investments, rental-only real estate without active development, or holding company structures with no operational control—since E-2 requires active commercial enterprise.

Step 3: Build a persuasive, realistic business plan

A high-quality business plan is often the centerpiece of an E-2 petition because it translates the business concept into measurable outcomes and shows how the investment will produce jobs and revenue.

Essential sections to include:

• Executive summary: Clear description of the business, investor role, and the amount of capital invested or planned.
• Market analysis: Target market size, competition, customer segments, pricing strategy, and marketing approaches.
• Products and services: What the business will sell, development stage, proprietary advantages, and supply chain considerations.
• Management and organizational structure: Bios of key personnel, ownership breakdown, and governance.
• Operations plan: Location, facilities, equipment, suppliers, and timeline for ramp-up.
• Financial projections: Detailed 3–5 year projections with assumptions, break-even analysis, cash flow statements, profit and loss forecasts, and projected payroll/job creation schedule.
• Use of funds: Clear mapping of invested capital to specific expenditures (equipment, leases, inventory, marketing, salaries) with supporting receipts or contracts if available.

Small business resources such as the U.S. Small Business Administration provide templates and guidance for writing a business plan at sba.gov. Many applicants work with specialized E-2 business plan writers and immigration attorneys to ensure the plan addresses visa adjudicator expectations.

Step 4: Source and document lawful investment funds

Documenting the lawful source of investment funds is critical. An adjudicator must see that the funds were obtained through legitimate means and are at risk in the business.

Acceptable evidence often includes:

• Bank statements showing accumulation and transfers.
• Sale agreements and closing documents for property sales.
• Business financial statements and tax returns reflecting corporate transfers.
• Loan agreements, promissory notes, and proof the lender is not a sham; if using personal loans, documentation must show the investor’s ability to repay and the legitimacy of the source.
• Inheritance documents, affidavits, or probate records where applicable.

Funds held in escrow or transferred into U.S. accounts with traceable wire receipts strengthen the record. The investor must show the capital is committed and at risk—meaning funds have already been spent, transferred for business use, or otherwise placed in positions where loss is possible.

Step 5: Make the investment and begin business activities

To demonstrate a genuine enterprise, an investor should begin business activities as soon as feasibly possible after investing. Evidence of concrete operations helps meet the E-2 standard that the investment is more than speculative.

Examples of persuasive operational evidence:

• Commercial lease agreements and records of moved-in dates.
• Invoices and purchase orders for equipment, inventory, or services.
• Contracts with customers or suppliers, proof of sales, and marketing materials.
• Employee hiring records, payroll receipts, and job postings that align with the business plan’s staffing projections.

Keeping meticulous records from day one makes the later petition more straightforward and defensible.

Step 6: Prepare the petition and supporting documents

The documentation package must tell a consistent and compelling story. Whether filing Form I-129 with USCIS or preparing a consular packet for the embassy, the same evidentiary themes apply.

Typical documents to assemble:

• Proof of nationality: Passports, consular certificates, and any documentation proving qualifying nationality.
• Company formation documents: Articles of incorporation, operating agreements, bylaws, shareholder ledgers.
• Financial evidence: Bank statements, wire receipts, escrow agreements, proof of expenses paid.
• Contracts and leases: Signed leases, purchase contracts, supplier and client agreements.
• Business plan: The full plan with financial annexes and job creation schedule.
• Personal background: Resumes, CVs, professional licenses, and prior business experience demonstrating capacity to run the enterprise.
• Forms and fees: Completed DS-160 for consular applicants or I-129 for USCIS filings, plus relevant filing fees and passport photos.

If the application will request an Employment Authorization Document (EAD) for a spouse, the spouse should prepare to file Form I-765 after E-2 entry; USCIS details the I-765 at uscis.gov/i-765.

Step 7: Prepare for the consular interview or USCIS adjudication

For consular applicants, the interview is often the final hurdle. They should be prepared to explain the business model succinctly and answer questions about investment sources, job creation, and their role.

Practical interview tips:

• Bring original documents and organized copies; consular officers often request originals for verification.
• Practice concise, consistent answers that match the business plan and supporting evidence.
• Anticipate questions about job creation, projected revenues, and what will happen if the investment fails.
• Demonstrate that the business is not marginal by pointing to payrolls, contracts, or marketing commitments.

For applicants filing with USCIS, consider using premium processing for faster adjudication where available (check current eligibility and fee details on USCIS). Regardless of route, involving an immigration attorney can markedly reduce procedural mistakes and improve the quality of evidence presented.

Timing, costs, and realistic expectations

Timing varies significantly by case. Preparing the business plan and assembling source-of-funds documents can take weeks to months. Consular appointment wait times depend on the embassy and season; USCIS processing times likewise fluctuate.

Costs to budget for an E-2 application include the actual investment in the business, legal and accounting fees, business-plan preparation, government filing fees, and operational expenses such as leases and payroll. While no fixed minimum investment exists, many practical applicants invest in the tens or hundreds of thousands of dollars where the business model warrants it.

Common pitfalls and how to avoid them

Certain recurring weaknesses can lead to denials; they are usually addressable with better planning and documentation.

• Insufficient documentation of source of funds: Start gathering trustworthy records early—bank statements, sale agreements, and accountant-prepared statements mitigate this risk.
• Passive investments: Avoid investment structures that could appear passive; focus on demonstrable operational control and active management.
• Weak business plans: Generic or speculative plans that lack financial detail and realistic hiring timelines often fail to convince adjudicators.
• Poorly timed filings: Investing after filing, or having minimal business activity at the time of application, creates vulnerability. Demonstrable, at-risk investment and operational steps taken before adjudication strengthen the case.
• Ownership ambiguity: Clear, well-documented ownership percentages and governance documents are essential.

After approval: arrival, renewals, and next steps

When the E-2 visa is granted, the initial period of admission is typically up to two years, and E-2 status can be extended in increments. The investor should track renewal deadlines and maintain detailed business records to support future extensions.

Dependents—spouses and unmarried children under 21—may receive E-2 derivative status. A spouse has work permission incident to status and may apply for an EAD in the U.S. using Form I-765 after lawful entry in E-2 status; children cannot work.

Some investors consider longer-term immigration strategies while on E-2, such as pursuing immigrant visa categories. Because E-2 is a nonimmigrant classification, applicants should consult an attorney for advice tailored to long-term immigration planning.

Which part of the E-2 process feels most uncertain to an applicant—the business plan, documenting funds, or the interview? Identifying that area early lets them focus resources on strengthening the weakest link.

Taking the step from business plan to approved E-2 visa is complex but navigable with disciplined preparation, clear documentation, and professional guidance; careful work up front often translates into smoother adjudication and faster business growth in the United States.

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.

Proving where investment money came from is one of the most critical parts of any successful E-2 visa application, and yet applicants often underestimate how detailed consular officers and immigration officials can be. This guide explains what counts as a lawful source of funds, what documents typically satisfy the requirement, and how to present a clear, credible money trail for an E-2 Investor Visa application.

Why proof of a lawful source of funds matters for the E-2 visa

The E-2 visa USA is granted to investors from treaty countries who place a substantial amount of capital into a U.S. business. Beyond showing the investment is at risk and will generate employment, the applicant must show that the investment funds were obtained through legal means.

Consular officers and U.S. immigration authorities review funds closely to prevent fraud, tax evasion, and money laundering. Failing to document the lawful origin of funds can delay a case, lead to a request for evidence (RFE), or mean denial—even when the business plan and investment itself are solid.

Understanding the standard: what “lawful source” really means

Lawful source of funds means demonstrable evidence that money came from legitimate activities or transactions that are legal in the country of origin and in the United States. The focus is less on the specific label of the source and more on credible documentary proof that ties funds to legal transactions, taxation, or corporate records.

There is no single form of proof required; instead adjudicators assess whether the totality of documents tells a coherent, verifiable story. It is wise to assume that officials will scrutinize unusual transactions, large cash movements, offshore transfers, and links to politically exposed persons.

Common acceptable sources and the documentation that supports them

Below are commonly accepted origins of investment funds, and the specific evidence applicants should provide to build a robust money trail.

Personal savings or salary

Evidence should show how savings accumulated over time from lawful employment or business activity.

• Bank statements covering the accumulation period, ideally showing steady deposits and balances.
• Pay stubs, employment contracts, and employer letters describing salary and employment dates.
• Tax returns and wage reports demonstrating declared income (link: IRS).

Sale of a property, business, or other asset

Provide documents showing ownership, the sale process, and receipt of proceeds.

• Purchase agreement and closing statement for the asset sold.
• Title transfer records and bank records showing receipt of sale proceeds.
• Capital gains tax filings or receipts to show the transaction was reported to tax authorities.

Inheritance

Inheritance is accepted if it is supported by estate documentation.

• Death certificate and original will or probate/estate letters.
• Court orders distributing assets, bank statements showing transfer of funds, and tax documents related to the estate.

Gifts from family or friends

For gifts, the donor must be identified and able to show the legality of funds.

• A written gift affidavit from the donor that includes relationship, amount, and confirmation that repayment is not expected.
• Donor’s bank statements, tax returns, and identity documents to substantiate origin of the gifted funds.

Loans

Loans are acceptable but must be commercial in nature, documented, and fully traceable.

• Signed loan agreement with interest rate, repayment terms, and lender/borrower identification.
• Evidence that the lender had the funds (bank statements) and that the loan was used for the specific investment (wire transfers, receipts).
• Loans from family should be treated like gifts with loan terms clearly documented to avoid questions about personal ties.

Corporate funds or capital contributions

When investing through a corporate entity, present clear corporate records.

• Articles of incorporation, shareholder agreements, and corporate resolutions authorizing the investment.
• Audited financial statements, ledgers, and minutes showing distribution of funds to the U.S. entity.
• Bank transfers from corporate accounts, invoices for asset purchases, and accounting entries.

Proceeds from securities, IPOs, or business exits

Show broker statements, sale contracts, and transfer records.

• Brokerage account statements showing sale of shares and subsequent transfer of proceeds to bank accounts.
• Stock purchase/sale agreements, escrow documents, and capital gains tax filings.
• SEC filings or public notices for larger exits (link: U.S. Securities and Exchange Commission).

Cryptocurrency

Cryptocurrency can be used as long as a verifiable chain of custody and legal source are documented—a common area of heightened scrutiny.

• Exchange records showing purchase history and KYC (know-your-customer) verification.
• Wallet transaction logs, blockchain transaction IDs, and records of conversion to fiat currency with bank transfers.
• Expert statements or forensic reports tying wallet addresses to lawful transactions where necessary.

How to assemble a credible money trail

Applicants should construct a chronological, annotated file that links each step from the original source to the final investment. The goal is to make the path easy to verify for an officer.

• Start at the source: Show where the funds originated—employer, buyer, deceased estate, brokerage, etc.
• Show transfers: Provide bank/wire records demonstrating each movement of funds, with dates and counterparties.
• Document conversion: If funds moved across currencies or borders, include currency exchange receipts and foreign bank statements.
• Connect to the investment: Show how the funds were used to purchase assets, pay deposits, or fund operations (receipts, purchase agreements, capital account entries).
• Organize an index: Provide a table of contents or annotated chronology so officials can follow the trail quickly.

Addressing high-risk scenarios and red flags

Certain situations attract extra scrutiny and should be proactively explained with strong documentation.

• Large cash deposits: Provide credible explanations and receipts showing how cash was accumulated and deposited.
• Unexplained wealth spikes: Reconcile sudden increases with sale documents, bonuses, or other evidence.
• Offshore accounts: Include certified translations, offshore bank statements, and compliant tax filings showing reporting of funds. Be mindful of international tax compliance obligations.
• Politically exposed persons (PEPs): Expect deeper scrutiny—disclose relationships early and provide clear legal sources and compliance records.

For more background on anti-money laundering guidelines — and why this matters — see FinCEN.

Common pitfalls and how to avoid them

Many E-2 applicants falter not because they lack lawful funds, but because their supporting documentation is incomplete, inconsistent, or poorly organized.

• Lack of corroborating documents: Don’t rely on a single statement. Combine contracts, bank records, tax filings, and third-party confirmations.
• Poorly explained transfers: If funds pass through multiple accounts, explain each transfer with date-stamped records and purpose statements.
• Missing translations or notarization: Provide certified translations for non-English documents and notarize affidavits where possible.
• Late evidence submission: Address potential issues before the interview or application submission to reduce RFEs.

Practical steps, checklist, and timelines

Building a strong lawful-source package takes time. Start early and follow a checklist to ensure nothing is missed.

• Collect personal IDs, tax returns, and bank statements covering the period when funds accumulated.
• Secure original contracts: sale agreements, probate documents, loan agreements, corporate minutes.
• Gather third-party corroboration: employer letters, buyer/seller confirmations, trustee letters.
• Translate and notarize non-English documents.
• Create an annotated chronology linking documents to each step of the funds’ journey.
• Prepare donor affidavits or loan agreements signed and dated before funds were transferred where possible.
• Allow time for forensic accounting or expert reports if funds are complex (e.g., large crypto holdings or cross-border corporate distributions).

Depending on complexity, compiling and validating these records can take weeks to months. Starting well before a consular appointment or USCIS filing is essential.

What to expect at the consular interview or RFE stage

Officers will ask focused questions about the origin and movement of funds, and they will compare verbal explanations to the documentary record. Confidence, consistency, and an organized folder make a strong impression.

• Bring originals and clear copies of all documents, plus an indexed binder with a table of contents.
• If an officer requests additional evidence (RFE), respond promptly with the requested documents and a covering letter that ties the response to the specific RFE points.
• When presenting complex chains (e.g., multiple transfers across countries), include a short, written narrative or timeline that summarizes the flow in plain language.

When to consult an expert

Complex funding situations—large cross-border transactions, cryptocurrency-heavy portfolios, business exits involving multiple shareholders, or loans from third parties—often benefit from a lawyer and a CPA or forensic accountant. Professionals can:

• Help reconstruct a clear money trail and prepare sworn statements or expert reports.
• Draft or review loan agreements, gift affidavits, and corporate resolutions to ensure they meet commercial and immigration expectations.
• Coordinate with banks and accountants to obtain properly authenticated documents.

An experienced E-2 attorney will anticipate consular questions and frame evidence so it addresses common officer concerns directly.

Practical examples (hypothetical) that illustrate good documentation

Example 1: She sold a family apartment in her home country and used proceeds to fund a restaurant in the U.S. Her submission included the original sales contract, the notarized closing statement showing buyer and seller signatures, the foreign bank statement showing the incoming sale proceeds, a certified translation of the closing documents, proof of tax payment on the sale, and the wire transfer records to the U.S. business account.

Example 2: He converted a long-held crypto position into USD. He produced exchange purchase records showing the initial crypto acquisition, the exchange’s KYC documents, transaction logs and blockchain IDs for transfers between wallets, liquidation records on an exchange, and bank account records showing the USD deposit—tied to business investment transfers. He also provided a short expert memo explaining the chain of custody.

Questions applicants should ask themselves before filing

These simple questions help reveal gaps before an application meets an officer:

• Can each large deposit be linked to a verifiable transaction or income source?
• Are there contemporaneous documents (contracts, receipts, tax filings) to corroborate the story?
• Have all non-English documents been translated and, where appropriate, notarized?
• Would a neutral third party (bank, accountant) be able to verify each step quickly?

Preparing a clear, verifiable record of the lawful source of investment funds reduces stress, shortens processing times, and increases the chance of approval. If questions remain about how best to document a particular source—especially in complex or novel situations—seeking experienced legal and accounting advice early will save time and protect the case.

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.

The E-2 visa’s “marginality” test is one of the most misunderstood parts of applying for a treaty investor visa — yet it often determines whether an investor’s application will succeed. This article explains, in plain terms, what counts as “more than minimal” income and how investors can demonstrate that their business satisfies the requirement.

What the marginality requirement is — and why it matters

At the core of an E-2 visa adjudication is the requirement that the qualifying enterprise be a real, active commercial enterprise that is not merely marginal. In practice, this means the enterprise must do more than provide a minimal living for the investor and family: it must either produce significant income or have the capacity to create job opportunities for U.S. workers.

Consular officers and U.S. immigration authorities review the business to determine whether it has a realistic economic footprint. If the enterprise is found to be marginal, the applicant may be denied because the E-2 classification is intended to promote economic activity and employment in the United States, not just to provide a residence for the investor and family.

Two ways to meet the “more than minimal” standard

There are two common approaches to satisfying the marginality requirement. An investor can demonstrate either (or both):

• Substantial income generation — the business is expected to generate income beyond what is needed to support the investor and their family at a minimal subsistence level; or
• Job creation — the business will create full-time jobs for U.S. workers beyond the investor and their family.

Adjudicators accept either pathway, but the evidence and timing differ: start-ups often rely on robust business plans and pro forma financials, while established businesses should provide historical financials, payroll records, and tax returns.

There is no single dollar cutoff — what decision-makers consider

Unlike some immigration rules that use fixed numbers, the E-2 marginality test has no statutory dollar threshold. Instead, adjudicators consider the totality of circumstances. Key factors include:

• The investor’s household needs relative to projected or actual business income;
• Realistic timelines for when the business will reach sustainable revenue and profitability;
• Evidence of hiring or reasonable plans to hire U.S. employees;
• The level of capital invested and how it is being used (operations, marketing, hiring, equipment); and
• Industry norms and local market context (some businesses are naturally low-margin but may justify size through employment).

Official guidance from the Department of State and U.S. Citizenship and Immigration Services (USCIS) reflects this flexible, fact-specific inquiry. See the State Department’s E-2 info and USCIS guidance for background: travel.state.gov — E-2 Investor and uscis.gov — E-2 Treaty Investors.

What counts as “income” for the marginality test?

Adjudicators will look at the enterprise’s capacity to generate economic benefit. This includes, but is not limited to:

• Payroll and wages paid to the investor and any U.S. employees;
• Net business profits shown on profit and loss statements and tax returns;
• Projected revenue growth in a credible pro forma for start-ups;
• Distributions or dividends from the business to the investor (properly documented); and
• Other documented sources of income that the investor legitimately intends to use (e.g., contracts, retainers, recurring service fees).

Adjudicators will generally not credit speculative or unsupported claims of future income. In renewal applications, actual historical financial performance (tax returns, W-2s/1099s, bank statements) carries significant weight.

Illustrative examples: how income evidence can meet — or fail — the test

Example A — Small consultancy run entirely by the investor: If the investor projects that the consultancy will pay a single salary that only covers the investor’s modest personal living expenses, adjudicators may view the enterprise as marginal. Even if the consultant bills a steady stream of clients, the business’s economic footprint may be seen as insufficient unless those funds are shown to generate broader economic impact.

Example B — Start-up with realistic hiring plan: A tech start-up invests $200,000 in product development and commercial operations, presents a detailed five-year pro forma showing break-even in 18 months, and plans to hire five full-time U.S. employees in year two. With supporting market research and contracts, adjudicators may find the business will create employment and therefore is not marginal.

Example C — Retail store demonstrating immediate local employment: A restaurant opens with committed lease, equipment purchases, payroll for a staff of eight, and initial sales receipts. The combination of actual payroll and immediate hiring clearly supports a non-marginal finding.

Practical calculations and benchmarks to prepare

Because no fixed dollar rule exists, investors should use defensible, documented benchmarks to show the business will do more than provide minimal subsistence. Helpful reference points include:

• The federal poverty guidelines as a baseline for minimal living costs (useful when arguing that the business will produce income well above poverty): HHS Poverty Guidelines.
• Market salary data from sources like the Bureau of Labor Statistics to justify salary assumptions for new hires.
• Industry revenue-per-employee metrics, where applicable, to show realistic growth and job-creation potential.

Examples of a simple calculation an adjudicator might find persuasive (illustrative only): If a household of three has an annual subsistence threshold of $30,000, a business projecting net cash flows of $60,000 annually (after reasonable reinvestment) is showing income that is clearly above minimal subsistence. If, in addition, the enterprise plans to hire two U.S. employees at market wages, it strengthens the case further.

Evidence that strengthens an E-2 marginality showing

Investors should assemble a fact-based file that demonstrates economic reality. Useful items include:

• Five years of pro forma financial statements for start-ups, with clear assumptions and sensitivity analyses;
• Historical financial statements (balance sheet, profit & loss, cash flow) for operating businesses;
• Federal and state tax returns evidencing reported income;
• Payroll records, W-2s, 1099s, and hiring documentation;
• Bank statements showing capital deployment and operating receipts;
• Signed client contracts, purchase orders, and invoices demonstrating revenue pipeline;
• Lease agreements, vendor contracts, and equipment invoices showing business commitments;
• Business licenses and registrations; and
• Third-party market research or letters from customers/suppliers validating demand.

Clear organization matters: annotate financial statements, explain assumptions in pro formas, and connect each piece of evidence to the specific marginality argument.

Common mistakes that lead to marginality denials

Several recurring errors undermine an investor’s case:

• Overly optimistic revenue projections without corroborating evidence or unrealistic timelines;
• Failing to show hiring plans or classifying labor as independent contractors when those roles should be employees;
• Using personal loans and draw-downs as a substitute for demonstrable business revenue without a plan showing how these funds will create sustainable operations;
• Relying exclusively on the investor’s personal outside income (e.g., rental income or investments elsewhere) while the U.S. enterprise remains inactive or marginal; and
• Poorly documented capital investment — for example, claiming funds were “invested” without bank transfers, invoices, or receipts to prove deployment into the U.S. business.

How the approach differs at initial application vs renewal

For initial E-2 applicants with a newly capitalized start-up, consular officers and USCIS tend to accept detailed pro formas and business plans — but they expect realism and concrete steps already taken (leases signed, equipment purchased, employees recruited). For renewals and extensions, adjudicators place greater emphasis on actual results: tax returns, payroll records, and operational evidence showing the enterprise has moved beyond minimal activity.

Practical tips for preparing a persuasive marginality showing

To reduce risk and maximize the strength of a filing, investors should consider these practical steps:

• Document capital deployment — show bank transfers, vendor invoices, and receipts tied to the U.S. enterprise.
• Create realistic pro formas — include month-by-month cash-flow forecasts for the first year, then annual projections, with clear assumptions and sensitivity scenarios (best, expected, worst case).
• Prioritize early hiring where feasible — even one committed U.S. hire can shift the marginality analysis positively when combined with credible growth plans.
• Use third-party validation — letters from customers, signed purchase orders, or pilot contracts make projected revenues more believable.
• Align salaries with market norms so payroll numbers are defensible based on industry data.
• Keep personal and business finances distinct — avoid mixing funds in a way that makes the enterprise’s viability unclear.

Sample document checklist to show “more than minimal” income

Investors should tailor evidence to their business, but a credible submission often includes:

• Business plan and executive summary;
• Three-year pro forma financial statements and cash-flow forecasts, annotated;
• Recent bank statements showing capital transfers into the business;
• Invoices, contracts, and receipts demonstrating current revenue or revenue commitments;
• Lease or purchase agreements for business premises and equipment invoices;
• Payroll records, W-2s, and employment agreements;
• Tax returns for the business (or personal returns tied to business income) when available;
• Market research or industry reports; and
• Letters from suppliers or customers evidencing ongoing business relationships.

When an investor has outside income or multiple ventures

If the investor has other legitimate income sources (rental income, pensions, investments), adjudicators may consider overall household resources. However, relying on outside income to cure a marginal U.S. enterprise is risky: the E-2 classification requires that the qualifying enterprise itself be more than marginal or be creating employment. If the investor’s strategy is to combine income sources, it should be clearly explained and documented; ideally, the U.S. enterprise’s economic impact should stand on its own or be shown to be on a credible growth trajectory.

For investors operating multiple business interests, it is important to show how the qualifying enterprise specifically contributes to economic activity and employment. Simply listing several small projects without evidence that any one will expand beyond minimal subsistence is unlikely to satisfy adjudicators.

Final practical thought

Proving that an E-2 enterprise is not marginal is ultimately about credibility and concrete economic impact. Whether through demonstrable income above subsistence or the creation of U.S. jobs, the investor’s evidence should tell a coherent story: realistic assumptions, documented steps already taken, and a plausible path to sustained operations. Thoughtful preparation — with realistic financials, third-party validation, and clear documentation of hiring and capital use — makes the difference between an application that survives scrutiny and one that falls short.

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.

Choosing the right business structure can make or break an E-2 investor visa application — and the decision between a franchise and an independent business carries legal, financial, and operational consequences.

Understanding the E-2 Visa: Core requirements to keep top of mind

Before comparing business models, it helps to recap the key features of the E-2 Treaty Investor visa. The visa is available to a national of a treaty country who has invested, or is actively investing, a substantial amount of capital in a legitimate, operating U.S. enterprise and who will be coming to the United States to develop and direct that enterprise. The investment must be at risk, the enterprise must not be marginal (it must generate more than minimal living for the investor), and the investor must have control of the funds and business operations.

Authoritative guidance is available from the U.S. Citizenship and Immigration Services (USCIS) and the U.S. Department of State:

• USCIS: E-2 Treaty Investors
• U.S. Department of State: Treaty Traders and Treaty Investors

Franchise vs. Independent Business: A quick overview

A franchise is a license-based model where the investor buys rights to operate under an established brand using a proven system, training, and ongoing support. An independent business is any company the investor creates or acquires outside of a franchising system — from a neighborhood café to a technology startup.

Both paths can meet E-2 requirements, but they present different strengths and challenges when demonstrating substantial investment, non-marginality, and the investor’s role in developing and directing the enterprise.

Why a franchise can be attractive for an E-2 application

Many investors choose franchises because they offer predictability and structure — two features that can simplify parts of the E-2 analysis.

• Proven business model: Franchises often have historical performance metrics, unit-level profit-and-loss data, and standardized operating procedures that help show viability and ability to create jobs.
• Comprehensive documentation: The Franchise Disclosure Document (FDD) and franchisor financials provide clear documentation of fees, typical start-up costs, training programs, and default unit economics — useful evidence for consular officers or USCIS.
• Faster path to operations: Training and vendor networks can accelerate hiring, opening, and revenue generation, helping the investor demonstrate the enterprise won’t be merely marginal.
• Lower operational learning curve: For investors new to U.S. business practices, franchising reduces operational risk and can facilitate credible business plans and cash flow projections.

For general guidance on franchise disclosures and rules, the Federal Trade Commission provides a helpful overview: FTC: The Franchise Rule.

Why an independent business can be the better fit

An independent business often gives the investor greater control and flexibility — qualities that are meaningful for E-2 compliance and long‑term strategy.

• Full operational control: The investor can structure the business, contracts, and policies to ensure they are clearly in the position to develop and direct the enterprise, an important E-2 requirement.
• Custom scalability: Independent ventures can be tailored to market gaps, niche opportunities, or innovative products/services that may scale faster than a local franchise format.
• Potentially lower ongoing fees: Without royalties and mandatory supply agreements, an independent business may preserve more cash flow for hiring and growth.
• Stronger exit flexibility: Selling or restructuring an independent business can be less constrained than exiting a franchise agreement, which often requires franchisor consent.

Specific E-2 considerations when evaluating a franchise

Buying into a franchise is not automatically E-2-friendly; certain franchise features may help or hinder the visa case.

• Ownership and control: The investor must demonstrate they have sufficient managerial control. If the franchisor imposes rigid rules that effectively leave decision-making to the franchisor, the investor should document retained managerial authority (hiring/firing, financial control, local operations).
• Franchise fees and royalties: Upfront fees, ongoing royalties, and marketing assessments count toward the investment but also reduce operating cash flow — which affects non-marginality. A careful cash-flow model should show the business can support operations and job creation after paying these obligations.
• Territorial protections and duration: A secure territory can strengthen the business plan. The FDD and franchise agreement terms (renewal rights, transferability, default clauses) should be reviewed to ensure the investor’s investment is sufficiently protected.
• Buying an existing franchise vs. opening a new unit: Purchasing a proven, operating franchise location with established revenue and employees often makes it easier to demonstrate non-marginality than launching a brand-new outlet.

Specific E-2 considerations when evaluating an independent business

An independent venture requires robust documentation and a thoughtful presentation of how it meets E-2 criteria.

• Business plan rigor: A detailed business plan with market analysis, sales projections, staffing schedules, and break-even forecasts is vital. The plan should connect the investment amount to realistic growth and job creation.
• Funds at risk & source of funds: Evidence that funds are committed and at economic risk (purchase agreements, wire transfers, vendor invoices) is crucial. Clear documentation of the legal source of investment funds (bank statements, sale of asset documentation) is also required.
• Demonstrating non-marginality: Especially for startups, the investor must convincingly show the business will generate more than minimal income. Detailed hiring plans and multi-year financial projections help establish that the business will employ U.S. workers and grow.
• Industry choice and scalability: Some industries (e.g., tech services) may scale rapidly but have different hiring profiles; the investor should tailor the business plan to show realistic employment and revenue paths consistent with E-2 expectations.

Proving “substantial” investment and non-marginality: practical evidence

The regulations do not set a fixed dollar amount for a substantial investment. Instead, the investment is evaluated relative to the nature of the business. Practical evidence that helps satisfy adjudicators includes:

• Purchase agreements, escrow receipts, and closing statements showing acquisition costs.
• Bank statements and wire transfers showing funds moved to the U.S. and committed to the enterprise.
• Invoices, signed vendor contracts, lease agreements, and equipment receipts demonstrating money put at risk.
• Detailed business plans with multi-year financial projections and hiring schedules to show the enterprise isn’t merely marginal.
• For franchises, the FDD, franchise agreement, and unit-level historical financials can strengthen the case.

Existing operations with verified revenue and payroll records make it easier to prove non-marginality; startups can succeed with a well-supported plan and early signs of expenditure and contracts.

Due diligence checklist: questions every investor should ask

Whether the investor leans toward a franchise or an independent business, thorough due diligence protects the E-2 case and the capital invested. Key questions include:

• Who will own the U.S. entity and does ownership structure satisfy treaty nationality/control requirements? (Confirm with counsel.)
• How much of the investment is required upfront, and what costs are recurring (royalties, marketing fees, supply contracts)?
• What contractual restrictions exist that could impede the investor’s ability to develop and direct the business?
• How soon will the business hire U.S. employees, and what are realistic salary and hiring timelines?
• If buying an existing business, can the investor obtain verifiable financials, tax returns, payroll records, and an asset list?
• What is the exit strategy and how would a sale or transfer affect E-2 status?

Practical decision framework: matching goals to the right model

Choosing between a franchise and an independent business often comes down to the investor’s priorities and risk tolerance. Here are scenarios to consider:

• Lower operational risk + quicker path to revenue: A franchise with proven unit economics and strong franchisor support may be a better fit.
• Maximum control + potential for higher upside: An independent business allows design of governance and financial structures aligned with E-2 requirements and long-term exit plans.
• Need to prove non-marginality quickly: Buying an existing, profitable operation (franchise or independent) typically strengthens an E-2 application more than a brand-new startup.
• Limited initial capital: Select a business plan proportional to investment size and ability to hire; small investments must still plausibly show the enterprise will produce more than minimal living for the investor.

Legal and financial advisors who understand both franchising and immigration law can help structure ownership and contractual arrangements that support an E-2 petition.

Documentation and presentation tips for a strong E-2 petition

How the investor packages the application matters as much as the underlying facts. Practical tips include:

• Use a clear, realistic business plan: Show timelines, milestones, hiring schedules, and contingency plans.
• Organize documents logically: Group purchase agreements, evidence of funds, contracts, and proof of expenditures into labeled exhibit sets.
• Show operational steps already taken: Training completed, vendor agreements signed, permits or licenses applied for, or lease signed help prove the investment is active and at risk.
• Quantify job creation: Even projected hires should be tied to the business model with concrete salary ranges and roles.
• Address potential consular concerns: Anticipate questions about control, management structures, and how royalties or franchisor obligations will not render the investor passive.

Common pitfalls and how to avoid them

Investors frequently stumble on a few repeat issues.

• Passive investment: Holding stock without active managerial involvement will likely be denied. The investor must show evidence they will develop and direct the business.
• Insufficient documentation of funds at risk: Funds sitting idle in a bank account with no contractual commitment are weaker than funds paid to suppliers, escrow, or vendors.
• Underestimating operating costs: High franchise royalties or supplier mandates can erode revenues and make a business appear marginal; realistic cash-flow modeling is essential.
• Ownership/control misalignment: Complex ownership structures that obscure who controls the enterprise can create doubt. Structure ownership to clearly reflect the treaty investor’s controlling interest.

Which model best matches the investor’s appetite for control, speed to market, and risk tolerance? That question — combined with a careful legal review of ownership, franchisor contracts, and a rigorous business plan — will steer the decision.

If the investor wants personalized guidance, they should consider asking: What level of ownership and managerial control is required for my specific franchise? Would buying an existing location make an E-2 approval more likely than starting a new one? How should the ownership entity be structured to reflect treaty nationality? A qualified E-2 attorney can answer these and help assemble the strongest possible petition.

Choosing between franchise and independent models is a strategic decision that combines immigration law, commercial due diligence, and long-term business planning — and the right choice often depends on the investor’s goals, capital, and tolerance for operational constraints. What trade-offs matter most to the investor: predictability or control, speed or flexibility? Thoughtful answers to those questions will point the way forward.

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.

The question of “how much is enough” for an E-2 visa is one of the most common and anxiety-inducing issues investors face — and the answer is rarely a single dollar figure.

What the law actually requires: no fixed dollar minimum

Neither the U.S. Citizenship and Immigration Services (USCIS) nor the U.S. Department of State (Travel.State.Gov) specifies a fixed minimum investment amount for an E-2 visa. Instead, the regulations require that the investor make a substantial investment in a bona fide enterprise located in the United States and that the investment be at risk and sufficient to ensure the successful operation of the enterprise.

That means "enough" depends on the nature and total cost of the business, not a universal dollar cutoff. How immigration adjudicators measure “substantial” centers on two core concepts: proportionality and ability to develop and direct the enterprise.

Two key tests used by adjudicators

When evaluating whether an investment is substantial, adjudicators typically use two practical tests:

• Proportionality test: The investment amount should be substantial in relationship to the total cost of either purchasing an established business or creating the type of enterprise under consideration. For low-cost businesses, this often means the investor must invest a larger percentage of the total costs; for capital-intensive ventures, a smaller percentage can still be substantial if the dollar amount is large enough to support operations.
• Marginality / economic impact test: The business must not be marginal. A marginal enterprise is defined as one that does not have the present or future capacity to generate more than enough income to provide a minimal living for the investor and his or her family. Practical evidence that an enterprise is not marginal often includes a reasonable business plan, projected job creation, and realistic revenue forecasts.

Representative real-world examples (typical scenarios)

To make the standards concrete, here are representative cases that mirror the kinds of facts immigration attorneys see regularly. These are realistic, anonymized examples that show how different business types affect what "enough" looks like.

Example A — Low-cost service business (typical investment: $30,000–$60,000)

A consultant from a treaty country wants to open a small office providing specialized professional services. Start-up costs are modest: office lease, basic furniture, a laptop, licensing and insurance. The total project investment is about $55,000.

Why this can work: Because the investor puts the full amount needed into the business, the investment is proportional to the total cost. The application is strengthened by a detailed client pipeline, contracts or letters of intent, hiring of support staff, and projections showing more-than-minimal income within two to three years. An adjudicator looks for evidence that the investor is actively developing and directing the business — not simply deriving passive income.

Example B — Mom-and-pop retail store (typical investment: $80,000–$150,000)

An entrepreneur plans to buy and renovate a small retail storefront. Total costs include inventory, leasehold improvements, equipment and initial payroll, totaling $150,000. The investor invests $115,000 and provides a loan for the balance from personal funds.

Why this can work: The investment represents a large share of the required capital, and the business plan forecasts a staff of several employees within a year, demonstrating that the enterprise is not marginal. Detailed pro forma financials and local market research support the projections.

Example C — Tech startup with scalable growth (typical initial investment: $150,000–$500,000)

A founder with a technology product forms a U.S. company and invests $200,000 to fund product development, initial salaries, and marketing. The total capital needed to fully scale might be higher, but the investor’s initial infusion is earmarked to achieve key milestones (prototype, early customers, intellectual property protection).

Why this can work: For capital-intensive or scalable ventures, adjudicators will accept a smaller proportional share of total future costs if the dollar amount invested is significant and it is clear the funds are committed and at risk. Evidence of a roadmap to growth, hiring plans, and fundraising strategy helps show the enterprise is more than marginal.

Example D — Manufacturing operation (typical investment: $600,000–$2,000,000+)

A manufacturer plans to purchase machinery, secure a production facility, and hire a production team. Total start-up outlays approach $1.2 million. The investor places $600,000 into the company from personal, documented funds, and secures bank financing for the remaining amount.

Why this can work: Manufacturing is capital-intensive. A large dollar investment that clearly funds the essential assets and operations will usually be seen as substantial under both the proportionality and economic impact tests. Job creation projections and secured supplier/customer contracts further bolster the case.

Common myths and practical thresholds

Myth: There is a hard floor — such as $100,000 — that guarantees approval. Fact: No set number guarantees approval; however, legal practitioners observe functional thresholds based on business type and costs.

• Under ~$75,000: Often more challenging for businesses that rely primarily on generating income for the investor, unless the business is genuinely low-cost and the investor funds nearly 100% of start-up costs with strong supporting documentation.
• $75,000–$200,000: Common range for service businesses, retail, and many startups; success depends heavily on documentation showing active management, realistic projections, and, where appropriate, hiring plans.
• $200,000+: Frequently sufficient for many startups and small manufacturing ventures; when combined with a strong business plan and evidence of economic impact, such amounts often clear the “substantial” hurdle.

What documentation convinces an adjudicator?

Money alone is not the whole story. Evidence must show the investment is real, irrevocably committed, and at risk. Useful supporting materials include:

• Bank statements, wire transfers, or escrow agreements showing funds transferred to the U.S. business.
• Receipts and contracts for equipment purchases, lease agreements, or vendor invoices.
• Detailed business plan with market research, sales forecasts, expense projections, and a hiring schedule.
• Evidence of active operations: leases, employee payroll, supplier/customer contracts, and marketing plans.
• Documentation tracing the lawful source of funds (sales of assets, earnings, loans, investment proceeds) — important because funds must be lawful in origin.
• Evidence that the investor will develop and direct the enterprise (organizational charts, board documents, job title and duties).

Red flags that hurt an E-2 investment case

Some recurring issues often lead to denials:

• Cash deposits with no clear source or gaps in the source-of-funds paper trail.
• Funds parked in accounts without being used for the business — showing lack of commitment or not "at risk".
• Inflated or implausible pro forma financials that lack supporting market evidence.
• Businesses that appear primarily to provide minimal subsistence to the investor (marginal businesses with no job creation outlook).
• Passive investments, such as buying stock in a company where the investor has no managerial control, are usually not qualifying.

Practical planning tips for prospective investors

To improve chances of approval, an investor should:

• Match investment to business model: Design the capital deployment so the funds actually enable the startup activities described in the plan (inventory, equipment, employees, marketing).
• Document source of funds early: Keep clear records for any asset sale, loan documentation, or other sources.
• Create a realistic business plan: Include conservative revenue estimates, clear job creation timelines, and milestones tied to funding tranches.
• Avoid last-minute transfers: Transfers timed suspiciously close to filing without supporting contracts can raise questions; staged investments tied to milestones are acceptable when documented.
• Engage counsel early: An experienced E-2 attorney can structure investments, advise on evidentiary needs, and anticipate questions from consular officers or USCIS adjudicators.

Consular processing vs. change of status — does investment amount matter?

Whether the investor seeks the E-2 at a U.S. consulate abroad or files for change of status inside the U.S., the substantive standards are the same: the investment must be substantial, at risk, and in a bona fide enterprise. However, consular officers and USCIS adjudicators may ask different questions and request different evidence, so preparing a comprehensive package is essential either way.

When a smaller investment can still win

Smaller investments succeed when they meet the proportionality test and the business is clearly structured to be more than marginal. Examples include businesses where high margins and low capital needs are typical (consulting firms, certain online businesses), and where the investor’s funds essentially cover the total startup cost. In these situations, strong supporting evidence — letters of intent from clients, contracts, and realistic financial projections — can tip the balance in favor of approval.

Questions an investor should ask before committing capital

Before transferring funds, an investor should consider questions such as:

• Does the proposed investment align with the typical capital profile for this industry?
• Can the investment be clearly documented and shown to be at risk?
• Will the business plan show that the enterprise is likely to create more-than-minimal income or jobs?
• Is there a clear timeline and budget showing how funds will be spent to achieve milestones?

These questions help ensure the investor’s resources are deployed in a way that meets E-2 standards.

Where to find official guidance and further reading

Authoritative, publicly available resources include:

• USCIS — E-2 Treaty Investors
• U.S. Department of State — Treaty Traders & Investors (E-1/E-2)
• 8 CFR 214.2 — Nonimmigrant Classifications (regulatory provisions)

Reading these pages gives the regulatory framework, but practical outcomes depend on the case facts.

Deciding how much investment is "enough" requires looking beyond a headline dollar figure and focusing on the business, the market, and how the funds will be used. Thoughtful planning, transparent documentation, and realistic business projections are often the deciding factors.

Would it help to review a specific business plan or investment scenario? A focused assessment can show whether the proposed capital and documentation line up with what adjudicators will expect, and point out practical changes that increase the chance of success.

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.