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| The E-2 Visa - The Entrepreneur's option |
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The United States has long been a country that attracts international entrepreneurs. Immigration law provides several mechanisms for investors to place key personnel in the US, including the investors themselves. One option is the E-2 visa category. This is also known as the nonimmigrant investor visa. It is a temporary visa status that is granted in two-year increments with no limits on the number of extensions. In comparison, the H-1B specialty worker is limited to six years, and the L-1A intercompany transferee is limited to 7 years for executives and managers. Also, unlike the H-1B, the E-2 visa holder’s spouse can obtain work authorization for the duration of E-2 status. He or she may then work anywhere in the U.S. The E-2 category is available to citizens of 82 countries that have a treaty of trade or commerce with the U.S. such as Japan, Taiwan, U.K. and the Philippines.
An E-2 allows Philippine nationals to manage investments that are at least 50% Filipino owned. The visa requires that the U.S. investment be substantial and generates a substantial income. The investment amount depends on the nature of the business. While there are no hard and fast figures on what the minimum investment amount is, the USCIS generally require a business investment of $100,000 or more. For example, opening up an automobile manufacturing plant would require several million dollars while opening up a CPA firm may only require start up costs of $75,000. This is why there is no fixed figure on a minimum investment amount, but the larger investment generally insures a more favorable decision.
The E-2 investor must show that its return on investment is more than what is necessary to merely support the investor in the U.S. Another example illustrates how this works. An E-2 investor wishes to establish a hotdog stand and will invest $25,000 to buy the equipment. He expects the hotdog stand to generate $90,000 in gross sales. This business would probably not qualify because the gross income generated would not be substantial. The hotdog stand would only generate enough money to support the investor.
Compare this to a business where the investor buys and runs a fleet of hot dog stands. He invests $100,000 setting up and equipping ten hotdog stands, and expects each stand to generate $90,000 in gross annual sales. This E-2 investment will generate $900,000 a year and will be seen as a substantial investment. The E-2 investment may be in any lawful endeavor that will generate a substantial income.
Some successful E-2s include professional services firms such as accounting or CPA firms, import-export companies, real estate management companies, retail stores, beauty salons, restaurants, and construction companies.
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