The E2 Visa is a powerful opportunity for entrepreneurs who want to live and work in the United States. However, choosing the wrong business can jeopardize your entire investment and immigration plan. In a recent video, Patrick Findaro, co-founder of Visa Franchise, highlighted five types of E2 businesses you should avoid if you’re planning to move to the U.S. through the E2 Visa. These insights are essential for ensuring your business meets the E2 Visa requirements and sets you up for long-term success.

Let’s dive into each type of business to understand why they may not be the best option for E2 Visa applicants.

1. Opening a New Restaurant

While opening a restaurant may seem like a popular business choice, it’s fraught with challenges, especially for first-time entrepreneurs in the U.S. Patrick Findaro advises:

“Opening a new restaurant… you need to find the location, secure the lease, build out, manage contractors, deal with the permitting – that’s just like a quarter of what you need to do.”

Starting a restaurant involves substantial financial investment and significant risks. The budget can fluctuate widely due to delays and unforeseen expenses. Patrick explains:

“The expenses can vary widely where… the budget can swing up or down 100K, 200K depending on delays.”

Instead of starting a new restaurant, consider buying an existing restaurant business where you already know the cash flow, operating costs, and customer base. This reduces risk and improves your chances of meeting E2 Visa requirements.

2. Opening a New Retail Business

Similar to restaurants, starting a new retail business comes with many complexities. Whether you’re planning to open a gym, fitness studio, or boutique, the challenges can be overwhelming, especially when you’re unfamiliar with the local market. Patrick notes:

“Dealing with permits again, dealing with a new area, analyzing foot traffic, car traffic – all these things for an area you don’t live in can be extremely daunting.”

Even for U.S. residents, launching a new retail business is challenging. For E2 Visa applicants, the risks are amplified due to the lack of local knowledge and experience.

Patrick’s advice is clear:

“Whether it’s a new franchise business or a new retail business, I would avoid those… go with buying an existing business where you already know the cash flow.”

An existing business provides more certainty and data, making it easier to plan your investment and meet the E2 Visa’s substantial investment requirements.

3. Opening a Consulting Business

Consulting businesses are often low-cost ventures, which makes them problematic for E2 Visa applications. Patrick explains:

“Most consulting businesses don’t cost much to open up… we’re talking 2K, 5K.”

The E2 Visa requires a “substantial investment,” and while there is no fixed minimum, investment expectations typically range from $60,000 to over $100,000, depending on the applicant’s country of origin. Patrick adds:

“Depending where you apply from… there’s a trend: 60, 80K for Canadians, over 100K for Pakistanis.”

Consulting businesses may not meet this substantial investment threshold. Moreover, you might incur unnecessary expenses just to qualify for the visa, making the process inefficient and costly.

4. Investing in a Friend’s or Family Member’s Business

Investing in a friend’s business can seem like a low-risk option, but it’s often a risky move. Patrick cautions against this:

“You should avoid investing in a friend’s business or family business unless you really do your due diligence and know what you’re getting into.”

Friends or relatives may propose business ideas that are unproven and lack a stable business model. Patrick warns:

“He also has a business and he has this awesome business idea… it hasn’t really been proven, it’s not a franchise business model.”

Due diligence is critical. You should thoroughly investigate the business’s financials, potential for growth, and operational model before investing. Failing to do so could result in losing your investment and your E2 Visa status.

5. Opening a New E-commerce Business

E-commerce may seem like an easy business to start, but it poses unique challenges for E2 Visa applicants. Patrick advises against setting up a new e-commerce business from scratch:

“If you’re setting up an e-commerce business from zero, I would not recommend you do that for the E2 Visa.”

The main issues include justifying job creation and demonstrating the marginality of the business. Additionally, consular officers may question your need to be physically present in the U.S. if the business operates entirely online. Patrick explains:

“The consular officer might also ask, ‘Well, if everything’s online, why do you need to be here in the United States to sell your physical product?’”

However, an existing e-commerce business with a solid revenue stream and plans to hire U.S. employees can be a viable option. Patrick clarifies:

“We have helped those that already have an established e-commerce business making 30, 40, 100, 200K in revenue and they’re going to open up a warehouse and hire Americans.”

The Importance of Due Diligence

Regardless of the type of business you choose, thorough due diligence is essential. Patrick emphasizes:

“Whatever business you’re going to get yourself into… you better be sure it’s going to work out for you.”

Your family’s future may depend on the success of your business. Doing your homework, speaking with existing business owners, and understanding the industry can prevent costly mistakes. Patrick advises:

“Talk to existing business owners ideally that already have the E2 Visa and maybe they’ve even gotten a green card from that business.”

This step ensures you gain real-world insights and avoid relying solely on sales pitches.

Conclusion

Choosing the right business for your E2 Visa investment is a crucial decision. As Patrick Findaro highlights, avoiding high-risk options like new restaurants, new retail ventures, consulting businesses, investments in friends’ businesses, and new e-commerce businesses can save you time, money, and stress. Instead, consider purchasing existing businesses with proven financial performance and operational stability.

Thorough due diligence and professional guidance can help you make an informed decision that supports your long-term goals in the United States.

FAQs

1. What is the E2 Visa substantial investment requirement?
There is no fixed amount, but generally, investments range from $60,000 to $100,000 or more, depending on the applicant’s nationality.

2. Why should I avoid opening a new restaurant for an E2 Visa?
Opening a new restaurant involves significant costs, delays, and uncertainties, which can make it challenging to meet E2 Visa requirements.

3. Is a consulting business a good option for an E2 Visa?
No, consulting businesses usually have low startup costs and may not meet the substantial investment requirement for the E2 Visa.

4. Can I invest in a family member’s business for my E2 Visa?
It’s risky unless you conduct thorough due diligence to ensure the business is viable and profitable.

5. Are existing e-commerce businesses good for E2 Visas?
Yes, if they generate substantial revenue and create jobs in the U.S., existing e-commerce businesses can be a strong option.