What is U.S. Immigration looking for in an E-2
renewal/extension application?

U.S. immigration places significant emphasis on three key aspects when evaluating an E-2 renewal application: marginality, substantial contribution, and maintenance of status. While there are other factors considered, these three are among the most scrutinized.

Marginality

If the business solely generates enough income to sustain the investor and their family's living expenses in the U.S., then the business might be deemed a marginal (too small), which can negatively impact the E-2 renewal application.

U.S. immigration wants to see that the E-2 investor is generating enough income so they are living comfortably in the U.S. The U.S. immigration does not specify a definitive amount that is considered comfortable living because this usually depends on 2 main factors:

1. The size of the investor’s family, if married and/or has children
2. The cost of living based on where the investor is living in the U.S.

Below is a chart to comparing the different cost of living in the U.S. in states between low – moderate cost of living versus states with high cost of living. In general an investor’s income should try to meet the below income amount based on their family size and state. Please note the below chart is a general estimate and does not guarantee an E-2 renewal/extension approval.

Substantial Contribution

U.S. Immigration wants to see that the business creates meaningful employment opportunities for American workers.

The job creation should provide the American workers with enough hours of work and annual income to cover the employees’ basic living expenses.

U.S. immigration aims to ensure that E-2 businesses thrive and grow, benefitting both the investor and the broader community. Demonstrating financial growth and job creation through documents like Business Tax Returns, financial statements, federal and state tax filings, and payroll records (excluding owner/family members) is crucial to showcase substantial contribution.

A viable E-2 renewal/extension application should include W-2 employees. If the business has 1099 independent contractors, this is normally considered an outside service provider and does not have the same advantageous meaning for job creation when compared to W-2 employees.

While 1099 independent contractors are often viewed as external service providers and may not hold the same weight in job creation evaluation, certain industries commonly rely on 1099 contractors.

In such cases, E-2 investors can offset this by identifying roles within their business that could be structured as W-2 positions. For instance, in industries like real estate management where realtors often work as 1099 contractors on commission, considering roles like receptionists, property managers, or assistants as W-2 employees. This could improve the strength of an E-2 renewal/extension application.

Maintenance of Status

Beyond the above factors, U.S. immigration also scrutinizes an applicant's compliance to visa regulations. Any violations, such as overstaying the I-94 Record or significant changes in business operations, may impact the renewal. This includes situations where the original E-2 business is sold to open a new one, or if the business no longer complies with E-2 Program Requirements.

What Documents are Required for an E-2 Renewal/Extension Application?

As part of our services we evaluate each case and provide a strategized list of documents required for a client’s E-2 renewal/extension application. Generally, below documents are the most common items required:

- Personal tax returns for the most recent 2-5 years
- Business tax returns for more recent 2-5 years
- Most recent Profit & Loss Statement and Balance Sheet
- Proof of business maintenance proven through on-going business expenses