Avoid These 3 E-2 Visa Mistakes in 2026

Small missteps can derail a strong E-2 case. The good news is that most problems are predictable and preventable with the right strategy.

Why the E-2 Investor Visa still works in 2026

The E-2 Investor Visa remains one of the fastest paths for US immigration through investment for entrepreneurs from qualifying treaty countries. It allows them to enter the E-2 visa USA category to develop and direct a bona fide enterprise without a fixed minimum investment and without permanent residence commitments. Official guidance is publicly available through USCIS and the U.S. Department of State’s Treaty Countries list, which confirms eligibility by nationality.

For founders comparing the investment visa USA options, the E-2 stands out because it focuses on a real, operating business rather than passive investments. That is why it is often informally called a startup visa USA, even though the law does not use that label. With careful planning and documentation, it can support both new ventures and acquisitions across many industries.

Below are three common mistakes that cause consular refusals or Requests for Evidence, especially relevant in 2026. Each section includes practical fixes to strengthen an application from the start.

Mistake 1: Underinvesting and leaving funds “not at risk”

Adjudicators focus on two linked ideas. The capital must be substantial for the type of enterprise and the funds must be irrevocably committed and at risk. There is no official minimum dollar amount for the investor visa USA. Officers apply a proportionality test based on the cost of starting or buying the specific business. That standard is described in the Department of State’s Foreign Affairs Manual at 9 FAM 402.9.

Two patterns often cause denials:

• Investing too little for the business model. A capital-light consulting firm can qualify with a smaller amount than a manufacturing facility, yet both must be funded at levels that make them viable.
• Keeping funds in personal accounts or in refundable deposits that the company can pull back at any time. If the money is not committed to the enterprise, it is not truly at risk.

What “substantial” looks like in practice

Officers compare the investment to what the enterprise actually needs to launch and operate. For a service startup, that might mean binding contracts for software subscriptions, marketing, equipment, office fit-out, and the first months of payroll. For a retail or manufacturing purchase, that could include the acquisition price, inventory, leasehold improvements, vendor deposits, and professional fees. If those costs are documented and the investment covers them, the case is stronger.

By contrast, if the plan requires equipment and staff yet the investor only pays for a website and business registration, the case appears speculative. The US investment immigration framework rewards credible execution, not intention.

Escrow is allowed, but it must be real

Applicants sometimes use escrow to hold purchase funds pending visa issuance. This can be acceptable when the escrow agreement is irrevocable and releases funds automatically upon visa approval. Consular officers and USCIS look for evidence that the funds are committed and not withdrawable at will, a principle reflected in 9 FAM 402.9 and USCIS’s Policy Manual. If the escrow terms allow the investor to exit freely, the “at risk” element fails.

Documentation that proves funds are at risk

Evidence should show that money is flowing from the investor to business uses that cannot be easily reversed. Typical exhibits include:

• Executed asset purchase agreements or franchise agreements with proof of payment
• Vendor invoices and paid receipts for equipment, inventory, and software
• Lease agreements with deposits paid and nonrefundable buildout costs
• Executed payroll service contracts and initial payroll proof if staff have started
• Marketing campaigns launched, with invoices and proof of payment
• Escrow agreements that are irrevocable with clear release conditions tied to the visa

A bank balance alone is not persuasive. Decision makers look for the money moving into business assets and operations that position the company to open and generate revenue.

Actionable tips to avoid Mistake 1

• Build a line-item startup budget with vendor quotes before filing, then pay those items and gather receipts.
• Use a dedicated business account so that wire receipts and payments match cleanly to invoices.
• If buying a company, commission a third-party valuation or at least supply market comparables to support the purchase price.
• For franchises, include franchise fee receipts, equipment lists, and site buildout invoices rather than relying only on the Franchise Disclosure Document.
• Avoid loans secured by the assets of the E-2 enterprise. Loans secured by the investor’s personal assets may be acceptable when properly documented, consistent with 9 FAM 402.9.

Thought starter: If an officer reviewed the file without speaking to the investor, would it be clear that the business could open tomorrow based on the spending already in place?

Mistake 2: Submitting a thin business plan that fails the marginality test

Even a well-funded startup can be refused if the plan does not show that the enterprise is more than a marginal endeavor. The marginality standard asks whether the business has the present or future capacity to generate more than enough income to provide a minimal living for the investor and family. It can also satisfy marginality by showing a significant economic impact, most commonly through job creation. The rule of thumb is a credible plan to hire U.S. workers within five years, reflected in 9 FAM 402.9.

Weak plans share familiar traits. Revenue appears as a single inflated number without assumptions. Expenses omit payroll taxes and insurance. Hiring is listed as “as needed” rather than tied to milestones and dates. Competitors are not identified. Forecasts are copied from a template and do not match the invoices in the file. Any of these can trigger doubts about viability.

What a strong E-2 plan includes

A professional E-2 visa USA plan is not a brochure. It is an operations and hiring roadmap tied to credible financials. At minimum, it should include:

• Business overview, ownership structure, and the investor’s role directing and developing the enterprise
• Market analysis with defined target customers, competitor mapping, and pricing strategy
• Marketing and sales plan with specific channels, budgets, and timelines
• Operations plan that explains suppliers, fulfillment, technology stack, and required licenses
• Staffing chart by quarter for at least five years with job titles, full-time equivalents, and salary ranges
• Financial projections that state assumptions for conversion rates, average order value, seasonality, cost of goods sold, payroll taxes, and benefits
• Startup budget tied to vendor quotes and the actual payments submitted as evidence
• Risk analysis with mitigations, such as alternative suppliers or contingency reserves

For applicants who want a starting point, the U.S. Small Business Administration’s guide on writing a plan outlines practical components and formats at the SBA website. That resource is not E-2 specific, yet it helps anchor projections in accepted business planning practices.

Special notes for franchises and acquisitions

Franchises are popular for the E-2 Investor Visa, however the Franchise Disclosure Document alone rarely satisfies the marginality analysis. Officers want to see a location-specific buildout budget, the staffing and marketing for the local territory, and financials that reflect the actual rent and payroll in the chosen city. For asset or stock purchases, provide historical financials and a transition plan that shows how revenue will be maintained or grown post closing with new hires and capital expenditures.

Service and online businesses can qualify, with the right evidence

It is possible to qualify a consulting firm or e-commerce brand, yet the plan must address how the business will support staff beyond the owner. For example, a digital marketing agency might show a timeline to hire account managers and media buyers, supported by signed client contracts and a pipeline report. An online store might present supplier agreements, inventory purchases, and a schedule to hire a fulfillment coordinator and customer service team as revenue scales.

Actionable tips to avoid Mistake 2

• Back every major assumption with a source or internal logic. If conversion rate is 3 percent, explain the benchmark or pilot data behind it.
• Translate hiring into payroll math. List wages plus payroll taxes and benefits so projections look real.
• Attach third-party corroboration where possible, such as letters of intent from customers, supplier agreements, and signed leases with market-rate rent.
• Include a five-year staffing chart and highlight when the business crosses the point where it supports more than the investor’s household.
• Avoid passive models as a primary activity. Purely passive real estate or stock portfolios do not qualify for E-2 because they do not involve development and direction of an active enterprise.

Thought starter: If the first year underperforms, does the plan still support at least one or two U.S. hires within the five-year window and a path out of marginality?

Mistake 3: Overlooking nationality, ownership, and source of funds pitfalls

E-2 eligibility rests on three legal pillars. The investor must hold the nationality of a treaty country, the enterprise must be at least 50 percent owned by persons with the same nationality, and the capital must have a lawful source and path of funds. Weakness in any one can sink a case that is otherwise strong on business merits.

Nationality details that matter in 2026

Not every country has an E-2 treaty. Applicants should confirm their nationality appears on the State Department’s Treaty Countries list. If the investor acquired citizenship through investment in a third country, current U.S. law requires that person to have been domiciled in that country for at least three years before applying for E status. USCIS explains this rule in its Policy Manual, which reflects statutory updates enacted in recent years. Overlooking this point has led to avoidable refusals.

Ownership nationality matters as much as the individual’s passport. If a company is owned 60 percent by nationals of a treaty country and 40 percent by U.S. permanent residents, the company takes the nationality of the treaty group. If ownership is split 50 percent between two different treaty nationalities, neither group holds majority control, which can create complications. Aligning ownership to the investor’s treaty nationality streamlines eligibility.

Getting the ownership structure right

For startups, a clean structure is usually best. The investor forms a U.S. entity and personally owns more than 50 percent directly or through a holding company that is itself majority owned by the same treaty nationals. For acquisitions, the purchase documents should confirm that post closing, the treaty-national group maintains the required ownership percentage. If there are multiple investors, cap table schedules should clearly show totals by nationality.

Employees seeking E-2 status as executives, supervisors, or essential skills must share the company’s nationality. A British-owned E-2 enterprise sponsors British managers, a Japanese-owned E-2 company sponsors Japanese managers, and so on. This alignment is outlined in 9 FAM 402.9.

Lawful source and path of funds

Officers look for a clear narrative and supporting documents that show how the money was earned and how it traveled into the business. Acceptable sources can include accumulated savings, business profits, property sales, loans secured by personal assets, or bona fide gifts. The Foreign Affairs Manual addresses acceptable sources and the need for tracing at 9 FAM 402.9.

Common gaps include mixing personal and business funds without records, relying on cash deposits without evidence of origin, and using loans secured by the business’s assets rather than the investor’s personal collateral. To avoid those mistakes, provide a straight chain of documents:

• Employment contracts, dividend records, tax returns, or sale agreements showing how funds were earned
• Bank statements tracking the movement from the investor’s account to the U.S. business account
• Loan agreements with collateral schedules if personal borrowing is used
• Gift letters with donor bank statements and the donor’s lawful source evidence when gifts are part of the capital

Currency control issues can also cause delays. Where home country regulations complicate large transfers, consider planning multiple documented transfers with invoices that match scheduled payments to U.S. vendors. The goal is a clean ledger that an officer can reconcile quickly.

Thought starter: If each deposit and payment were printed in a single timeline, would a stranger understand exactly where the money came from and how it was spent?

What is new or important to remember in 2026

Policy evolves, yet the core E-2 visa requirements remain stable. Entrepreneurs in 2026 should keep a few reminders at the top of their checklist:

• Spouses of E-2 principals are employment authorized incident to status. The I-94 typically indicates this, which simplifies work authorization. USCIS guidance is available through policy updates linked from the USCIS E-2 page.
• Consular practices differ. Each post can have its own document checklist and interview scheduling norms. Always follow the local embassy or consulate instructions linked from the Department of State.
• Remote and digital businesses face additional scrutiny. Prove that the enterprise is real and operating through contracts, payroll, systems, and compliance registrations, not just a website.
• Renewals look at performance. Officers compare actual results against the original plan, so keep clean books and be ready to show job creation progress, even if modest at first.

In short, the best way to future proof an E-2 case is to run the company the way the business plan promised. That creates a natural path to extensions and to expanding the team with E-2 employees.

Quick checklist to avoid the big three mistakes

Use this condensed list to stress test a file before submission. It is not exhaustive, yet it addresses the most common pitfalls.

• Substantial and at risk
  • Investment aligns with realistic startup costs for the chosen industry and city
  • Funds spent on nonrefundable items with receipts tied to the business plan
  • Escrow, if used, is irrevocable with automatic release terms upon approval
  • No loans secured by enterprise assets
• Business plan and marginality
  • Five-year projections with explicit assumptions and a hiring schedule
  • Market analysis that names competitors and explains pricing
  • Payroll math includes taxes and benefits, not just base wages
  • Evidence of traction, such as letters of intent, contracts, or supplier agreements
• Nationality, ownership, and funds
  • Investor’s passport is from a treaty country listed by the State Department
  • Company ownership shows majority control by the same treaty nationality
  • Citizenship by investment holders meet the three-year domicile rule where applicable
  • Source and path of funds documented from origin to U.S. business account

Frequently asked questions

What is a typical investment amount for the E-2?

There is no fixed minimum set by law. The amount must be substantial in proportion to the business’s total startup or purchase cost. A capital-intensive factory requires more than a small consulting practice. Officers expect enough funding to make the enterprise operational and not speculative.

Can real estate qualify for E-2?

It can when it is part of an active enterprise, such as a property management company with staff. Passive ownership of real estate without active operations generally does not qualify.

Can the investor pay themselves a salary before approval?

The rules do not bar reasonable pre-approval expenses, yet strategy matters. Many applicants prioritize spending that clearly builds the business, such as equipment, inventory, buildout, and vendor contracts. Counsel can advise on how compensation fits the narrative without weakening the “at risk” analysis.

Is a franchise easier to approve?

Franchises provide structure and brand recognition, but they are not automatically easier. Officers still require proof of substantial investment, a local operations plan, and a credible path out of marginality with U.S. jobs.

How soon must the company hire employees?

There is no single deadline, yet the plan should show movement toward job creation within the first years, and meaningful progress over a five-year horizon. Hiring should match the growth plan and be reflected in the financial projections.

Can family members work or study on E-2 dependent status?

Spouses can work. Children can study, though they generally cannot work on E-2 dependent status. Always check the latest guidance on the USCIS site and with the specific consulate.

Pro tips that strengthen almost every E-2 case

A few practical habits elevate the quality of an application and reduce back and forth with adjudicators.

• Create a single master index that links every claim in the plan to a specific exhibit and page number.
• Label bank statements and receipts with short captions that explain their role in the investment story.
• Draft a one-page ownership summary that totals equity by nationality and shows how control is exercised.
• Include a 90-day operations calendar that starts on approval day, with tasks, responsible persons, and spend.
• Prepare for the interview with concise answers about the business model, pricing, competition, and staffing.

These steps make it easy for an officer to follow the narrative and to see that the enterprise is real, funded, and ready to contribute to the U.S. economy.

When to bring in an E-2 visa lawyer

The E-2 is a business-heavy immigration category. Professional help is particularly useful when there are complex ownership structures, cross-border funding, acquisitions with escrow, or citizenship by investment issues. An experienced attorney can map the E-2 visa requirements to the facts, spot gaps early, and package a coherent file that anticipates consular questions.

If the goal is to avoid the three mistakes outlined above, the best time to seek guidance is before spending patterns harden and before the plan is locked. Upfront strategy pays off because it shapes the investment into a narrative that is easy to approve.

With the right plan, credible spending, and clean documentation, the E-2 Investor Visa remains a powerful route for entrepreneur visa USA applicants in 2026. Which of the three areas needs the most attention in a current project, and what one step this week would make that part of the case undeniable?

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.