The E-2 Investor Visa offers an exciting opportunity for foreign investors to establish their businesses in the United States. However, to successfully navigate this process, applicants must satisfy numerous requirements—one of which is that their venture must not be considered a “marginal enterprise.”
Understanding Marginal Enterprises:
A marginal enterprise is defined by US immigration authorities as a business that does not have the capacity to generate more than a minimal living for the investor and their family. A company that only provides a marginal living or only generates enough income to support the investor and their immediate family members may not qualify for the E-2 Visa.
To move away from marginality, the business should demonstrate a significant economic impact, contributing to the economy beyond just providing the livelihood for the investor and their family. Here, we’ll explore five different business scenarios, identify possible pitfalls that could label them as marginal enterprises, and provide strategies to mitigate these challenges.
Coffee Shop Venture: Let’s say you’re planning to invest in a small coffee shop in a quiet neighborhood. Due to its size and location, the business might initially be seen as a marginal enterprise if it’s only making enough income to support you and your family. Strategy: You can demonstrate that your business is not marginal by creating a business plan that shows growth potential. This could involve expanding the premises, opening new branches, or diversifying your products and services to increase revenue. Hiring U.S. workers and showing how the business contributes to the local economy would also be beneficial.
Digital Marketing Agency: Imagine you’re investing in a digital marketing agency that operates remotely. If the business is small, with only a handful of clients, it may initially be classified as marginal. Strategy: Showcase your agency’s scalability. Your business plan could include strategies to attract more clients, develop new services, and hire more employees, thus enhancing the economic impact.
Clothing Retailer: Suppose you’re starting a clothing retail business. If the business merely breaks even or generates minimal profits, it may be considered marginal. Strategy: Highlight plans for expansion and growth. This could be introducing new clothing lines, expanding to more locations, or launching an e-commerce platform to reach a wider market. Hiring more U.S. workers, particularly in sales, design, or logistics roles, can also demonstrate the business’s non-marginality.
Restaurant: Suppose you’re opening a restaurant. If the restaurant only generates enough income to support your family, it could be viewed as marginal. Strategy: Your business plan could include steps to scale the business, such as catering services, hosting events, or even franchising in the future. Job creation for U.S. workers in the form of chefs, servers, and managers can further emphasize the economic contribution.
IT Consulting Firm: Let’s say you’re investing in an IT consulting firm. If the firm has limited clients and only generates enough profit to maintain your livelihood, it might be deemed marginal. Strategy: A robust business plan can showcase how the firm intends to grow its client base, offer new services, or expand into new markets. Hiring additional U.S. workers can also illustrate non-marginality.
In conclusion, to ensure your business doesn’t fall into the category of a marginal enterprise, it’s essential to show its capacity to generate more than a minimal living and its ability to contribute significantly to the U.S. economy. A strong business plan showing potential for growth and job creation can go a long way in demonstrating non-marginality for E-2 visa purposes.
Please note that this blog is for informational purposes only and should not be considered legal advice. It is always recommended to consult with an experienced immigration attorney for personalized guidance based on your specific circumstances.
