E2 visa, the most popular U.S. investor visa
The preferred U.S. investment immigration path for 200 years and counting
What is an E2 visa?
E-2 visa is an entrepreneur and investor (also known as a treaty investor) non-immigrant work visas
for individuals or companies wishing to run their business in the United States. An E2 visa holder
is allowed to start a business in the USA or invest into one here and
work for that U.S. company.
E2 visa investors are required to show how they will start or buy a U.S.
business, hire U.S. workers, and grow a profitable enterprise in 5 years.
E2 visa investors must demonstrate how they have & will commence or acquire a U.S. business; hire
U.S.workers and achieve profitability in 5 years!
The E2 visa can be renewed indefinitely as long as you operate the business and continue to meet all
the other E2 requirements.
E-2 minimum investment amount
Understanding the minimum investment: The E-2 visa does not have a minimum investment amount settled or announced by the USA government, but investments must be "substantial," which definitionally means that they should constitute a principal part of either:
(a) purchasing an established business, or
(b) paying for equipment and starting up the type of business being invested in.
Investments below $100K often present challenges in demonstrating substantiality. While there are no fixed requirements as long as sufficient evidence exists, usually amounts less than this may qualify depending on the nature of the business. Just demonstrate that the investment is enough to make a go of it and stay in business.
E2 visa timeline
The E-2 visa timeline depends on which USCIS service center the application is sent to and the
complexity of the case. In our 8+ years of helping more than 1,200 families achieve the American
Dream through franchise investment, we have almost never seen an E-2 visa for a franchise purchase
take less than four months; the typical timeline is around six to eight months.
This, however, can be done more quickly (approved in less than three months).
The processing time for getting an E2 visa does indeed take a very short period compared with other
business opportunities; those who establish their own company in the USA have a processing time for
getting this visa of just 4–5 months. This makes this visa very important for entrepreneurs who look
to invest on the American soil.
If you're interested in learning more about this topic, feel free to read the following
article, which explores the subject thoroughly.
What are the benefits of an E2 visa?
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Changing from an E-2 visa to a permanent (green) card
During this relatively long period, there have been several other pathways opened up for those same nationals to obtain their green cards including through the EB visa categories such as the EB1A for individuals with extraordinary ability, or family members who are already green card holders can sponsor their relatives or even US citizens and LPRs alike.
EB-5 visa — EB-5 is a very popular choice for E2 investors because it provides an immediate path to permanent residency through $800,000 or more investment into USA business. However, other E-2 visa holders may change their status from an E-2 to a green card by finding work through employment-based visas for which the employer sponsors. And evaluate the requirements and processes of each option to determine what will work best.
E2 visa approval rate
E-2 visa count for the United States in 2023 was approximately 54,000—nearly setting a record—with an increase of nearly twenty percent above last year's number and tying the flat-out record high. Topping the list is Japan with 15,560 approvals, solidifying its status as an E-2 visa powerhouse, according to Investment Migration Insider. By continent, Asia again leads the pack with 27,010 approvals. It must be reiterated that in 2023, the approval rate was similarly high—impressive by any measure and indicative of strong belief in applicants and their investment projects.
E2 Visa Franchise process
Having served under the American Dream since 2015 to the level of our success, we are capable of
devising an extremely detailed process in which every one of your needs is carefully spelled out.
Plus, with one of the toughest standards for due diligence in this space, we give both visibility
and peace of mind to make sure we stand behind your interests. We take great care in the
consideration of each opportunity and franchise behind it, realizing this is a significant
investment on your part. We ensure this is completely in compliance with extremely high standards of
success, but is also the right match for you.
Be sure to click below and explore our process in further detail.
Tax issues affecting E-2 visa holders
Tax considerations. Most E-2 visa holders are subject to U.S. tax laws and must pay federal income taxes on worldwide income if they qualify under the substantial presence test; Nonetheless, tax treaties between the U.S. and E-2 visa holder’s home country may provide for some exemptions or benefits in order to avoid double taxation of a same income source. Navigating these complexities can be very difficult, therefore it is important to consult with a tax professional experienced in both USA and international tax laws for assistance while keeping your taxes up-to-date but minimizing your liabilities wherever possible.
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Responses to E-2 visa application denials and appeals
Common reasons for E-2 visa denial and appeal process: Some of the most frequent issues that may lead to your application being denied include inadequate investment, failure to present a well-defined business plan or fail to prove legitimately source of funds.
Applicants can appeal the decision or even try to file another application (being careful to correct any reasons for denial from earlier). Often, to maximize the chance for an approval, a wise decision would be to supplement that application with more documentation or correcting any shortcomings in your file and possibly consulting with an immigration lawyer.
E-2 visa for families
They also can bring their spouse and unmarried children under 21 years old to the U.S. with E-2 dependent visas, and Spouses of E-2 visa holders are eligible for employment authorization in any field as well (EAD). Your children can go to school in the US, getting education from America. The more one knows about these benefits, the better they can plan their move and make sure everything will go well when changing over to life in the USA.
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Economic and political changes effect on E-2 visa policy
Economic and political influences. Changes in the economy of the US or changes in attitude towards immigration by political leaders can have a significant effect in the E2 visa program. For instance, conditions like economic downturns may hinder business profits that can impact the determination of E-2 investments to be economically unviable.
Similarly, new immigration policies could make the criteria for E-2 visas tighter or easier. It is important for existing and potential E-2 visa holders to be aware of these changes, but it is also crucial that they adapt their business strategies accordingly.
Frequently asked questions
How much do I need to invest to qualify for an E2 visa?
To qualify for an E2 visa, the investment amount varies, but at Visa Franchise, we always advise investing more than $100,000 to cover all costs and enhance E2 visa approval chances.
How long is the E2 visa valid, and can it be renewed?
The E2 visa is typically valid for up to five years, and it can be renewed indefinitely as long as the investor maintains the qualifying investment and business operations.
How to apply for an E2 visa?
Applying for an E-2 Visa varies depending on whether you're applying from within or outside the U.S. If you're already in the U.S., you can apply by filing Form I-129 with USCIS, providing documentation of your nationality, investment, and business details. If you're outside the U.S., you'll need to complete Form DS-160 online and schedule a visa interview at the nearest U.S. Embassy or consulate in your home country.
Can my family members accompany me on the E2 visa, and can they work or study in the U.S.?
Yes, family members, including spouses and unmarried children under 21, can accompany the E2 visa holder to the U.S. Additionally, they are usually eligible to work and study in the U.S. while residing under the E2 visa status.
What are the tax obligations for E2 visa holders in the U.S. and my home country?
For E2 visa holders in the United States, tax obligations primarily revolve around U.S. federal, state, and local taxes. They are typically subject to taxation on income earned within the United States, whether it's from business ventures, employment, or investments conducted on U.S. soil. However, there are two key considerations that significantly affect their tax liabilities: the substantial presence requirement and worldwide income.
The substantial presence test determines whether an individual is considered a U.S. tax resident based on their physical presence in the country over a specified period, which includes the current calendar year and a three-year period that encompasses the current year and the two years immediately preceding it. If an E2 visa holder meets this test, they may be deemed a U.S. tax resident and thus subject to taxation on their worldwide income, which includes income earned both within and outside the United States. This means that income generated from sources anywhere in the world must be reported on their U.S. tax return and may be subject to U.S. taxation.
Can E2 visa lead to the green card?
While the E2 visa itself does not directly lead to a green card, E2 visa holders can explore other pathways to obtaining a green card, such as through employment-based immigrant visas or family sponsorship, if they meet the eligibility criteria.
Is a sponsor required for the E2 visa?
No, a sponsor is not required for the E2 investor visa. E2 visa applicants applying as a manager or essential employee need a sponsor.
What kinds of businesses meet the criteria for the E2 visa?
Under the E2 visa, various types of businesses are acceptable, including but not limited to: franchises, small businesses, technology startups, manufacturing companies, consulting firms, import/export businesses, and retail stores.
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