Immigration through Business Ownership

Mike Jani, MBA

Principal Broker & Franchise Consultant

Investor visas allow immigration to the United States through business ownership.

E-1 Visa

Businessmen and their employees who are nationals of E1 Treaty Trader countries and whose business undertakes a significant amount of international trade between their home Country and the United States may qualify for this type of visa.

https://www.uscis.gov/working-in-the-united-states/temporary-workers/e-1-treaty-traders

E-2 Visa

The E2 Treaty Investor visa allows the investor to live and work in the US to direct and develop the business, and allows entry of Executive, Management and Essential skills employees.

https://www.uscis.gov/working-in-the-united-states/temporary-workers/e-2-treaty-investors

L-1 Visa

The L1 visa is a non-immigrant visa which allows overseas companies to transfer employees under two types of L1 visas.

https://www.uscis.gov/forms/explore-my-options/l-visas-l-1a-and-l-1b-for-temporary-workers

EB-5 visa

This category allows international investors who invest a minimum of either $900,000 or $1,800,000 in a profit-making US company to gain lawful permanent residence popularly known as a Green Card in the US.

https://www.uscis.gov/forms/explore-my-options/eb-5-employment-based-immigration-immigrant-investor-program

E-2 Visa – Investment starting at $100,000

What is the E-2 investor visa?

The E-2 visa is category of investor visa that allows an individual to enter and work in the United States based on an investment in a US business.

What is the basic requirement?

The basic requirement is that E-2 visa investors show they will invest (by starting or buying) in a US business, hire Americans, and grow a profitable business in 5 years.

Who can apply for an E-2 investor visa?

The E-2 nonimmigrant classification allows a national of a treaty country to be admitted to the United States when investing a substantial amount of capital in a U.S. business.

A list of treaty countries can be found here:

https://travel.state.gov/content/travel/en/us-visas/visa-information-resources/fees/treaty.html

What are the options for buying a business to qualify for an E-2 investor visa?

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What kinds of businesses are available for an E-2 investor visa?

Option # 1 : Buying an existing Business or an existing franchise

Advantages: (i) An existing, operational business is often profitable (ii) Success of business can be determined by analyzing past financials. (iii) Easier to finance – either thru the seller or a bank (iv) A large number of businesses and franchises are available for sale

Challenges: (i) Conducting financial due diligence is difficult if the business in not a franchise. (ii) Successful businesses / franchises may have a high selling price (iii) Training and ongoing support may not be adequate if the business in not a franchise. (iv) Profitable franchises may not be available in cities when the E-2 investor desires.

Solutions offered by Fortune Business Brokers: We will help you search and analyze available businesses, help you conduct due diligence and negotiate a reasonable price

Option # 2 : Buying a Franchise

Advantages: (i) A franchise will have an established business model, with a higher chance of success (ii) Initial setup, business functions and an established process of doing business is provided by the franchisor.

Challenges: (i) Getting approved as a franchisee is difficult, esp. when the buyer is not in the US (ii) Gaining franchise rights may have a high cost (iii) Time it takes to open the business and to break even or generate profits.

Solutions offered by Fortune Business Brokers: We have identified franchises in different industries that are good for E-2 investors. We will guide you thru the process of evaluating the franchise and help you qualify for and gain franchise rights in an area / city / state that you desire.

Option # 3 : Start-Up (Starting a new business)

Advantages: (i) Wide range of industries and geographies to operate the business (ii) No goodwill amount to be paid for an existing business or no franchise fees to be paid (iii) Unlimited potential to grow

Challenges: (i) Start-ups may not meet the substantial investment requirement to qualify for the E-2 visa (ii) It is hard to benchmark success for a start-up, compared to an established business or a franchise. (iii) Start-ups have a high failure rate with 50% failing within the first five years.

Solutions offered by Fortune Business Brokers: We can help in developing a well-researched business plan for the start-up, identify the pit falls and help develop strategies to mitigate failures.