Proving Business Viability & Job Creation in the First Year of Your E-2 Visa

Proving that a newly established company is both viable and capable of creating jobs in its first year can make or break an E-2 visa application; careful planning and organized evidence turn an idea into convincing proof.

Why first-year evidence matters for an E-2 visa

The E-2 investor visa is granted to citizens of treaty countries who make a substantial investment in a bona fide U.S. enterprise and intend to direct and develop that business. One central hurdle is the marginality requirement: the business must not be marginal, meaning it should generate more than enough income to provide a minimal living for the investor and/or have a significant economic impact — most commonly demonstrated by job creation.

Consular officers and U.S. Citizenship and Immigration Services (USCIS) look for concrete, verifiable evidence that the enterprise is operating, is financially viable, and is actively employing or will employ U.S. workers. Since many E-2 approvals occur at the consulate or through USCIS adjudicators who expect documented progress, the first twelve months are critical for building a record.

Categories of evidence to prepare

Organizing documentation into clear categories helps examiners assess viability quickly. Key categories include:

• Business formation and governance: articles of incorporation, operating agreements, bylaws, EIN issuance, state registration and licenses.
• Investment and capital traceability: bank statements, wire transfers, proof of funds remitted to the U.S., receipts for asset purchases, escrow documents.
• Financial projections and performance: a detailed business plan with monthly projections for the first year, actual monthly financials, profit & loss statements, and balance sheets.
• Operational evidence: leases, vendor contracts, supplier invoices, purchase orders, insurance policies, photos of premises and equipment.
• Hiring evidence: payroll records, offer letters, signed employment agreements, I-9 forms, W-2s (if applicable), and job descriptions.
• Market traction: signed client contracts, sales receipts, website analytics, marketing materials, and letters from suppliers or customers.
• Tax and government filings: payroll tax filings (e.g., Form 941), state unemployment insurance registration and reports, and federal/state tax filings when available.

How to build a credible first-year business plan

A high-quality business plan is the backbone of E-2 evidence. It should be realistic, data-driven, and tailored to the specific business model.

Essential components:

• Executive summary — business concept, investment amount, ownership structure, and objectives for year one.
• Market analysis — target customers, competitors, market size, pricing strategy, and supporting sources.
• Products/services and revenue model — how the company makes money, unit economics, and sales channels.
• Operations plan — location, suppliers, production or service delivery processes, necessary equipment, and capacity.
• Management and staffing plan — roles and responsibilities, staffing timeline, job descriptions, and key hires needed to meet projections.
• Financial projections — monthly cash flow, profit & loss, and balance sheet for the first 12 months; quarterly and annual projections for 3–5 years; break-even analysis; assumptions clearly listed.
• Risk analysis and contingency plans — customer concentration, supply risks, seasonal fluctuations, and how the business will respond.

For templates and guidance on structure, the U.S. Small Business Administration provides reliable resources for writing business plans: SBA — Write Your Business Plan.

Proving the investment is at risk and substantial

Evidence that funds are "at risk" and committed to the enterprise is essential. Typical documentation includes:

• Bank statements showing transfers of capital into a business account and corresponding disbursements (equipment purchases, lease deposits, contractor payments).
• Receipts and invoices for equipment, inventory, and services.
• Signed leases or purchase agreements for premises.
• Escrow statements or canceled checks demonstrating that capital was spent on bona fide business expenditures.

Tracking the sources and uses of funds is crucial: identify where the money came from and precisely how it was used. Mixing personal and business funds or failing to document the flow of funds weakens the case.

Documenting job creation in year one

Job creation is the most persuasive way to show the business is more than marginal. Here is how to document it effectively:

• Clear job descriptions that specify duties, hours, salary, and qualifications.
• Employment offers and signed contracts with start dates.
• Payroll records — evidence of payment via payroll reports, direct deposit confirmations, pay stubs, and bank withdrawals.
• Tax and governmental filings — quarterly payroll tax filings (Form 941), state unemployment insurance (SUI) registration and payments, and year-end W-2s when available.
• I-9 forms and personnel files to verify employment eligibility and maintain compliance.
• Affidavits or letters from employees confirming employment, job duties, and hours.

When relying on independent contractors, be cautious: contractors do not usually count as employees for demonstrating non-marginality. If contractors are essential, include long-term contracts with predictable payments that show economic impact, but prioritize hiring W-2 employees when the goal is to demonstrate job creation.

Tracking full-time equivalents (FTEs) and counting jobs

Consular officers evaluate job creation by looking at full-time equivalent (FTE) positions rather than simple headcount. For example, two part-time employees at 20 hours/week may equal one FTE if full-time is 40 hours/week. Document hours worked, pay rate, and schedules to calculate FTEs.

If family members or the investor’s own role is used to define positions, present additional hires to show economic impact beyond the investor and family.

Operational proof: showing the business is actively running

Beyond payroll, demonstrate everyday operations with records such as:

• Signed client contracts and invoices showing revenue;
• Point-of-sale receipts or booking confirmations;
• Vendor and supplier agreements with payment histories;
• Insurance policies, utilities, and phone bills tied to the business address;
• Website analytics (traffic, bookings, sales conversions) and social media engagement;
• Photos of the storefront, office, equipment, and staff at work.

These materials build a narrative that the investor actively manages a functioning enterprise rather than maintaining a passive holding.

Sample month-by-month evidence timeline for year one

Creating a timeline helps observers follow the business’s progress. A practical 12-month roadmap might include:

• Months 1–2: Company formation, EIN, bank account, lease signed, initial purchases, website launch.
• Months 3–4: Hiring key staff, payroll setup, first marketing campaigns, early sales/contracts.
• Months 5–6: Regular payroll cycles, vendor relationships established, customer feedback and repeat business.
• Months 7–9: Scale hiring per projections, refine operations, document improved conversion rates and revenue growth.
• Months 10–12: Quarterly tax filings, year-end preparation, audited or compiled financial statements if feasible, and solidify contracts for year two.

For each milestone, retain dated documentation (emails, invoices, contracts, photos) to create a chronological record that matches the business plan’s assumptions.

Preparing for RFEs and the consular interview

Requests for Evidence (RFEs) and consular interviews are common. To reduce risk and respond effectively:

• Organize materials logically: label documents by category and date; prepare an index or table of contents for quick reference.
• Provide third-party corroboration: letters from clients, suppliers, landlords, accountants, or a bank officer add credibility.
• Include explanations and reconciliations: if numbers changed from the original plan, explain why and show updated projections backed by actuals.
• Prepare sworn affidavits: from key employees or contractors describing services performed, hours, and compensation.
• Practice concise responses: the investor should be ready to explain the business model, hiring plans, and why the company is not marginal in plain terms.

Consulates and USCIS officers expect consistency: dates, amounts, and names should match across bank statements, contracts, payroll, and tax filings.

Common pitfalls and how to avoid them

Many E-2 applicants stumble on avoidable issues. Proactive measures include:

• Poor recordkeeping: use accounting software (e.g., QuickBooks) from day one and reconcile monthly.
• Under-capitalization: invest enough to execute the business plan; underfunded businesses struggle to hire and grow.
• Mixing funds: maintain separate business bank accounts and clearly document transfers of personal funds into the business.
• Over-reliance on family members: demonstrate hires outside the investor’s family to show public economic benefit.
• Misclassifying workers: follow IRS and Department of Labor guidance to classify employees vs contractors correctly; misclassification can undermine evidence.
• Failing to register or obtain licenses: ensure all state and local registrations and industry licenses are in place and documented.

Practical checklist for the first year

Use this checklist as an actionable guide for documentation and milestones:

• Complete company formation, obtain EIN, open business bank account.
• Prepare a detailed, month-by-month business plan and financial projections.
• Track all investment inflows and business expenditures with supporting receipts.
• Secure premises and retain signed leases and evidence of occupancy.
• Hire staff according to the staffing plan and retain signed offers, I-9s, and payroll records.
• File payroll tax returns and maintain proof of payments to tax authorities.
• Document revenue generation with invoices, contracts, and receipts.
• Collect third-party letters (clients, suppliers, landlord) and employee affidavits.
• Maintain a visual and chronological file: photos, screenshots, and dated emails.
• Consult with an immigration attorney and an accountant periodically to ensure regulatory compliance and strong evidentiary posture.

Where to find official guidance

Authoritative federal resources include the U.S. Department of State’s page on E visas and USCIS guidance for nonimmigrant classifications. For tax and payroll rules, the Internal Revenue Service provides forms and instructions for employers. Useful links:

• U.S. Department of State — E Visas
• USCIS — Form I-129 (if applying via USCIS)
• IRS — Apply for an EIN
• SBA — Business Plan Guidance

Building a convincing first-year record for an E-2 visa takes discipline, realistic planning, and diligent documentation. By creating a clear business plan, proving that funds are at risk, establishing payroll and hires, and compiling chronological operational proof, an investor can significantly strengthen their claim that the enterprise is viable and non-marginal. What aspect of first-year documentation feels most challenging — funding, hiring, or recordkeeping? Asking that question early guides a focused evidence strategy and increases the likelihood of a successful outcome.

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.