Active investment is the beating heart of a strong E-2 Investor Visa case. This guide explains what actually counts as active, what does not, and how real businesses prove it with persuasive evidence.
Armed with practical examples, investors can turn a good idea into an operation that meets E-2 visa requirements and supports a long-term strategy in the United States.
What “active investment” means under the E-2 Visa
For the E-2 visa USA category, an investor must put capital into a real and operating commercial enterprise and must develop and direct that enterprise. That standard comes from the U.S. Department of State’s guidance for consular officers, found in the Foreign Affairs Manual at 9 FAM 402.9, and is echoed by U.S. Citizenship and Immigration Services for change of status applications inside the United States at USCIS E-2 Treaty Investors.
In plain terms, an E-2 investor must do more than fund a bank account. They must show that their money is at risk, irrevocably committed, and actively deployed into a business that sells goods or services. The investor must also have the authority to make decisions, usually through at least 50 percent ownership or by holding a controlling managerial role.
Several principles anchor the definition of active investment:
- At risk and committed: Funds must be exposed to gain and loss in the commercial sense. Simply holding money in a business account is not enough. Expenditures on equipment, inventory, buildout, staffing, and launch activities demonstrate commitment.
- Real and operating: The enterprise should be running or very near start, with tangible steps completed. A lease, licenses, vendor contracts, a live website with payment processing, and initial sales are strong signals.
- More than marginal: The enterprise should have present or future capacity to generate more than a minimal living for the investor and family. Reasonable job creation and credible financial projections support this point, which the FAM calls the marginality test.
- Develop and direct: The investor should control strategy and daily direction. A passive position in someone else’s venture will not work for E-2.
Consular officers also confirm that the investor holds the nationality of a treaty country and that at least half of the enterprise is ultimately owned by nationals of treaty countries. A current list of qualifying countries is available on the Department of State website at E-2 Treaty Investors.
Core elements officers look for
To evaluate active investment, officers weigh both the quality and timing of what has been done before the interview. The most persuasive E-2 visa USA packages tend to include the following elements.
- Substantiality for the business model: There is no fixed minimum, but the amount must be proportionate to the type of enterprise. For a restaurant, that often means significant outlay for leasehold improvements, equipment, and staff. For a software firm, upfront spending on product development, key hires, and infrastructure can be sufficient. The FAM emphasizes a case-by-case analysis.
- Evidence of a real and operating enterprise: Active lease, utility set-up, municipal and state licenses, business bank statements with outgoing payments, merchant processing statements, payroll records, signed customer contracts, live website, inventory receipts, and insurance policies.
- Funds at risk: Receipts and contracts showing nonrefundable payments or obligations. Escrow arrangements can be acceptable if release is conditioned only on visa issuance, a point recognized in 9 FAM 402.9, although local post practice varies.
- Develop and direct role: Ownership documents, operating agreements, and an organizational chart showing the investor’s decision-making authority and managerial role.
- Non-marginality: A credible business plan with three to five year projections, job creation timelines, and market analysis. Resources from the U.S. Small Business Administration can help shape credible plans, see SBA business plan guide.
- Lawful source and path of funds: Bank statements, tax returns, sale agreements, and transfer records that trace the capital into the U.S. enterprise.
Put simply, officers want to see that the business is not hypothetical. By the time of adjudication, it should be operating or within reach of launch with most start-up tasks fully completed.
What does not count as active investment
Certain activities are considered passive under the E-2 framework and will not qualify, even if significant money is involved.
- Stock or bond portfolios: Buying and holding publicly traded securities does not create a real, operating enterprise.
- Cryptocurrency speculation or day trading: Trading personal accounts is not an active commercial enterprise with customers, contracts, and operational overhead.
- Undeveloped land and property flipping: Holding land for appreciation or quick resale is passive. A bona fide development or construction company with licensed operations, employees, and third-party clients can qualify, but the asset itself is not the business.
- Single-property rentals: Owning one condo and collecting rent is usually passive. A scaled property management company that serves multiple owners, hires staff, and provides services may qualify.
- Silent limited partnerships: Minority, hands-off positions in someone else’s company fail the develop and direct requirement.
- Uncommitted cash: Parking a large sum in a business account without spending or irrevocably committing it to operations is not active investment.
These distinctions reflect the E-2 category’s focus on real entrepreneurship. An investor visa USA case should show a business that sells, hires, and operates in the marketplace.
Real-world examples that count as active investment
There is no single template for an E-2 enterprise. The following examples illustrate common paths that meet the active investment standard when supported with the right evidence.
Independent restaurant or cafe
A bistro invests in leasehold improvements, kitchen equipment, permits, point-of-sale systems, insurance, and initial staff. Menus are printed, suppliers contracted, and soft opening sales are underway.
What makes it active: significant capital at risk, ongoing payroll, vendor contracts, and daily operations. Evidence includes leases, health permits, invoices for equipment, payroll reports, and merchant statements.
Service company, such as digital marketing or IT consulting
A boutique agency hires two specialists, signs recurring client contracts, buys software subscriptions, and launches a lead generation pipeline. The owner manages strategy, client acquisition, and delivery.
What makes it active: employment, revenue contracts, stable infrastructure, and recurring services. Evidence includes executed client agreements, payroll and contractor payments, software licenses, and a live portfolio site.
Franchise location
An investor signs a franchise agreement with a recognized brand, pays the franchise fee, completes training, signs a site lease, orders buildout, and places equipment deposits. Staff are recruited with anticipated start dates aligned to opening.
What makes it active: committed franchise fee, brand-mandated buildout, vendor orders, and a clear opening schedule. Franchise documents, construction contracts, and staffing plans corroborate readiness. Many consulates view well-prepared franchises favorably because the model is tested, yet the investor remains the operator.
E-commerce brand with in-house fulfillment
A consumer goods company purchases inventory, sets up a warehouse sublease and insurance, contracts a 3PL or hires warehouse staff, and integrates a live storefront with payment processing. Early sales and customer service workflows are active.
What makes it active: inventory on hand, logistics infrastructure, and transactions. Evidence includes bills of lading, warehouse agreements, merchant statements, and documented ad spend for customer acquisition.
Software startup with paying pilot customers
A SaaS company invests in development, cloud infrastructure, data security, and customer success hires. Beta testing has matured into paid pilots or signed letters of intent with defined go-live dates.
What makes it active: revenue or committed pilots, employees, and a running product. Evidence includes subscription invoices, server bills, employment agreements, security compliance documentation, and a product roadmap with milestones.
Light manufacturing or assembly
A small manufacturer buys specialized equipment, leases industrial space, obtains OSHA compliance where applicable, and sets up supply chain agreements. Initial purchase orders from distributors are in place.
What makes it active: machinery on the floor, vendor and customer contracts, and trained operators. Evidence includes equipment invoices, freight receipts, safety compliance records, and POs.
Logistics and trucking company
A carrier purchases or leases trucks, secures motor carrier authority, insures vehicles, and hires drivers. Contracts with shippers or brokered lanes demonstrate cash flow.
What makes it active: USDOT operating authority, insurance, vehicles in service, and ongoing loads. Evidence includes DOT filings, insurance binders, ELD subscriptions, driver payroll, and signed rate confirmations.
Healthcare clinic or allied health practice
A physical therapy clinic secures professional licenses, leases a treatment space, buys equipment, obtains malpractice and general liability coverage, and hires front-desk support. Referral agreements and early patient bookings are documented.
What makes it active: compliance, staffing, paying patients, and recurring appointments. Evidence includes state licenses, payer registrations if applicable, equipment receipts, and appointment logs.
Education or tutoring center
A learning center signs a commercial lease, hires instructors, purchases curriculum materials, and enrolls students for upcoming sessions. The owner oversees marketing and academic standards.
What makes it active: scheduled classes, tuition contracts, paid instructors, and classroom operations. Evidence includes enrollment agreements, payroll, vendor invoices, and marketing subscriptions.
Property management company
Instead of owning one rental, a firm signs management agreements with multiple property owners, hires maintenance techs and a leasing agent, subscribes to management software, and advertises available units.
What makes it active: services to third parties, employees, and recurring management fees. Evidence includes signed management contracts, payroll, vendor invoices, and active listings. This contrasts with a single-unit rental, which is usually passive.
Edge cases and how to make them work
Some business models sit near the line between passive and active. With careful structuring and real operations, they can qualify.
- Short-term rentals: A single hosted unit is generally passive. A hospitality business that leases multiple units on master leases, employs cleaners and a guest services coordinator, and delivers hotel-like services can be active. Professional licenses, local compliance, and commercial insurance strengthen the file.
- Solo consulting: A one-person consultancy with modest income risks being deemed marginal. A plan that adds junior consultants or contractors, builds retainer-based clients, and demonstrates marketing investment can address both activity and non-marginality.
- Holding companies: A pure holding company is passive. A parent entity that actively manages subsidiaries, employs staff, and provides centralized services like sales, HR, and accounting can qualify as the active enterprise. Ownership and control should be clear.
- Seasonal businesses: Activity can be shown through off-season preparations, prepaid contracts, and staffing for the upcoming season. Deposits and contracts demonstrate funds at risk and readiness.
- Acquisition with escrow: Buying an existing business through an escrow that releases funds on visa issuance can show irrevocable commitment. Some posts accept this, others prefer evidence of funds already transferred. Checking post-specific practices is prudent, and the FAM acknowledges escrow as a potential structure.
In each case, the investor’s hands-on role and the presence of paying customers or enforceable contracts make the difference.
How much activity is enough at application time
The Foreign Affairs Manual states the enterprise should be real and operating or close to the start of operations. That means most pre-launch steps are complete and any remaining items are minor or timing-driven, not speculative.
Typical pre-interview milestones that help demonstrate sufficient activity include:
- Executed commercial lease, utility setup, and business insurance.
- Local and state licenses, permits, and registrations, including employer tax accounts.
- Vendor and customer contracts, or purchase orders with delivery timelines.
- Inventory ordered and received, or equipment installed and tested.
- Website live with merchant processing, and marketing channels active.
- Staff recruited, with offer letters and onboarding schedules in place.
- Accounting system established and initial transactions recorded.
Where sales have already started, that is powerful evidence. If launch is imminent, officers look for binding commitments and money already spent. A plan that depends on visa approval before any meaningful spending is usually weak.
Financing the investment without breaking the rules
Active investment focuses on how funds are committed, not just how much. The source and structure of the capital matters.
- Equity and savings: Personal savings, retained earnings, or a capital contribution from the investor’s foreign company are common and strong sources. Tracing the path into the U.S. enterprise is essential.
- Gifts: Gifted funds are allowed if the gift is bona fide. Documentation of the donor’s lawful source of funds and the transfer supports credibility.
- Loans: Loans secured by the investor’s personal assets can qualify. Loans that are secured by assets of the U.S. enterprise are problematic because the funds may not be considered at risk. The FAM discusses this at the at-risk requirement.
- Escrow: Purchase funds held in escrow may be acceptable if the only condition is visa issuance. This is recognized in 9 FAM 402.9, though consular practice can vary by post.
Whatever the mix, the key question is whether the investor has placed capital at risk in a commercial sense and will suffer loss if the business fails. That is the heart of active investment.
Proving the enterprise is not marginal
Even if activity is strong, an E-2 case can stumble on the marginality test. Officers assess whether the business has present or future capacity to generate more than minimal living income for the investor and family. While there is no formal job-creation quota for E-2, a plan to hire supports non-marginality.
Practical ways to demonstrate non-marginality include:
- Three to five year financial projections that show sustainable profits.
- A staffing plan that adds employees or long-term contractors as revenue grows.
- Market analysis that supports the revenue assumptions, with sources cited. The SBA guide at SBA business plans can help structure sourcing and assumptions.
- Letters of intent or long-term customer contracts that indicate predictable revenue.
- Supplier discounts tied to volume, which support scale and margins.
Evidence of early hires, especially in roles beyond the owner, is persuasive. A plan that forever relies on the owner alone is more likely to be treated as marginal.
Checklist: turning a passive idea into an active E-2 business
Investors often start with an idea that could be passive if left unstructured. This checklist helps convert it into a bona fide E-2 enterprise.
- Define services or products that the business will sell to third parties, not just manage personal assets.
- Establish a U.S. legal entity with treaty-country ownership control and obtain an EIN.
- Secure a commercial location or documented virtual infrastructure that fits the model.
- Obtain all required licenses and insurances before filing.
- Commit capital to equipment, inventory, software, marketing, and staffing.
- Sign vendor and customer agreements and begin fulfillment where possible.
- Implement payroll or contractor agreements that align with growth projections.
- Build robust financial records, including bank statements, invoices, and a bookkeeping system.
- Prepare a data-backed business plan with staffing and revenue milestones.
- Organize a comprehensive evidence package that maps each E-2 requirement to specific documents.
A simple test can help: If the investor stopped working for a week, would the business still operate through staff, contracts, and systems. If not, it may still be too close to a sole-proprietor concept or a passive asset play.
Frequently asked questions
The same questions arise in most E-2 investor visa USA consultations. Clear answers help investors avoid common pitfalls.
Can an online-only business qualify as active
Yes, provided it is real and operating. An online business needs real customers, revenue or active contracts, and operating structure. Evidence includes merchant statements, subscriptions for core tools, advertising invoices, customer support systems, and any staff or contractors. A dropshipping site with no inventory, minimal customer service, and negligible sales is weak.
Does day trading qualify
No. Personal trading is a passive activity. There is no exchange of goods or services to third-party customers and no operating enterprise in the commercial sense.
Can real estate ever qualify
Yes, but not as simple rentals or flips. A development or construction company, a third-party property management firm, or a renovation company that serves outside clients can qualify. The key is that the entity sells services, hires staff, and operates as a business, rather than owning a single personal investment property.
Do contractors count as employees for non-marginality
Independent contractors can support non-marginality if they are long term and central to operations. That said, W-2 employees often carry more weight because they demonstrate ongoing payroll obligations and organizational scale.
Is there a minimum number of jobs or revenue
No fixed minimum appears in the law or FAM for E-2. The standard is qualitative and tied to the business model. Two to three jobs within the first couple of years, supported by credible projections, is a common pattern but not a rule.
Can profits be reinvested and still count as active
Yes. Reinvesting profits into growth, equipment, and hiring supports both activity and non-marginality. Keep thorough records to show the reinvestment path.
What if the business is not profitable yet
Early-stage companies can qualify if the active investment and operating steps are strong and the plan shows near-term viability. Officers expect start-ups to have a timeline to break even and hire as revenue grows.
Actionable tips for building a stronger file
A thoughtful approach can turn an average E-2 application into a compelling one. Consider these practical steps.
- Create a matrix that lists each E-2 element and the documents that prove it. Gaps become clear and fixable.
- Address timing early. Many leases and purchases can include refundable contingencies, then convert to nonrefundable once the application window approaches, which satisfies the at-risk expectation.
- Secure a few anchor clients or signed pre-launch contracts. Even modest early revenue can demonstrate commercial traction.
- Invest in bookkeeping from day one. Clean financials impress officers and make renewals smoother.
- Document the investor’s day-to-day role with an organizational chart, job description, and meeting notes that show leadership.
- Prepare for consulate-specific preferences by reviewing the local U.S. Embassy or Consulate E visa page linked from travel.state.gov employment visas. Submission formats and lead times vary.
One thought-provoking question for any entrepreneur visa USA candidate is this: what single step in the next 30 days would make the enterprise unmistakably real and operating. An executed lease, a first hire, or a paid customer can transform the narrative.
Why consistency matters for renewals
Active investment is not a one-time box to check. For E-2 renewals, officers look for continued operations, revenue growth consistent with the business plan, and progress on staffing. Renewals become far easier when the initial plan was realistic and the company tracks against it with honest updates.
Investors who anticipate renewals prepare by retaining key documents quarterly: payroll reports, tax filings, P&L statements, updated contracts, and proof of continued ownership and control. That record tells a credible story of ongoing activity and non-marginality.
Putting it all together
Active investment for the E-2 visa is about tangible action. Money must be at risk and put to work in a real business that sells to customers, hires people, and operates day to day. Passive investments, however profitable, do not meet the standard.
If a business model feels close to the line, the path forward is usually to add real operations. Contracts, employees, inventory, licenses, and systems shift a concept from passive to active. The Foreign Affairs Manual at 9 FAM 402.9 and the official guidance at USCIS outline the framework. Real-world examples show how to apply it.
For anyone exploring US investment immigration, a helpful exercise is to map the current business against the core E-2 elements and ask: where is the strongest evidence today, and where can additional action create undeniable activity. Strategic steps taken now can strengthen an initial filing and lay the groundwork for a smooth renewal later. If tailored guidance would help, a focused consultation with an experienced E-2 attorney can turn questions into a confident, evidence-backed plan.
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.