Top 10 Questions About the E-2 Investor Visa—Answered Clearly!
Introduction
The E-2 Treaty Investor Visa is a highly attractive option for individuals seeking to start a business in the United States. However, many prospective applicants have similar questions regarding the process, the types of qualifying investments, and the key considerations for a successful application.
In this article, we aim to provide clear and accurate answers to the most frequently asked questions we encounter during the E-2 visa application process.
- Is every investment eligible for an E-2 visa?
No. The E-2 visa only covers investments in “active and operating” enterprises. Passive investments, such as purchasing real estate, buying stocks, or opening a bank account, do not qualify. The investment must contribute directly to the U.S. economy, and the investor must actively participate in the daily management of the business.
- How much investment is required?
While there is no legally defined minimum amount, the investment must be substantial. The required amount depends on the nature and scale of the business. For example, an investment of $100,000 may be sufficient for a technology consulting firm, while industries such as manufacturing or food service typically require a significantly higher amount. The key factor is that the investment must be realistic and sufficient to establish and operate the business.
- Can an application be submitted before the business is formed?
No. The business must be established, the investment must be largely made, and the enterprise must be ready to begin operations before an E-2 application can be filed. A business plan alone is not sufficient at the time of filing; the majority of the investment must be committed and well-documented.
- Is the investor required to manage the company?
Yes. The E-2 visa requires the investor to play an active role in managing the business. The investor must be in a position to make key operational decisions and exercise control over the enterprise. A business that is entirely delegated to others without the investor’s involvement is generally not considered eligible.
- Can family members benefit from the E-2 visa?
Yes. The spouse and unmarried children under the age of 21 of an E-2 investor may accompany the investor to the U.S. Spouses are eligible to apply for work authorization (EAD) and may work legally in any position. Children may attend school in the United States.
- Does the E-2 visa lead to a green card?
No, the E-2 is a nonimmigrant visa. However, some investors may later pursue immigrant visa categories, such as EB-3 or EB-2 NIW, in order to apply for a green card. Strategic long-term planning with an experienced immigration attorney is essential for such transitions.
- How long is the E-2 visa valid?
The visa duration varies by country of nationality. For Turkish citizens, E-2 visas issued at U.S. consulates are typically valid for five years. As long as the business remains operational, the visa can be renewed indefinitely.
- Is hiring U.S. workers a requirement for the E-2 visa?
While not strictly required, hiring U.S. workers is highly relevant to the long-term viability of the E-2 visa. The business must not be considered “marginal,” meaning it should aim to grow beyond merely supporting the investor and their family. It should have the potential to contribute to the U.S. economy.
Therefore, although there is no immediate requirement to employ U.S. workers, it is generally expected. A well-drafted business plan must outline a realistic hiring strategy.
- Can the investment be funded through loans?
It depends on the nature of the loan. E-2 investments must place the investor’s personal assets at risk. In other words, the investor must be personally liable for the loan, which should be secured by personal assets.
Loans such as bank financing or personal loans from family members (for which the investor bears individual liability) may be acceptable. However, loans taken solely in the name of the company, without the investor’s personal responsibility, typically do not qualify as valid E-2 capital.
- Are there any restrictions on the type of business for an E-2 visa?
No. The E-2 visa allows for a wide range of business types, including starting a new venture or acquiring an existing one. Consulting, technology, retail, food services, e-commerce, cleaning services, and logistics are just a few examples of qualifying industries.
However, the business model must be realistic, sustainable, and actively managed by the investor. Regardless of the industry, the investment must contribute directly to the U.S. economy and demonstrate growth potential.
Conclusion
Every E-2 case is unique. Even small mistakes or missing documents can lead to delays or denials. That’s why it’s important to get legal advice tailored to your business and investment.
If you are considering applying for an E-2 visa, working with an experienced immigration attorney can significantly reduce risks and increase your chances of approval.
