Common Pitfalls E-2 Visa Applicants Face When Purchasing a Business
At Sharma Law Associates, LLC, our New York immigration attorney regularly advises entrepreneurs and investors seeking E-2 visas through business purchases. The E-2 visa offers a valuable opportunity for nationals of treaty countries to live and work in the United States by investing in a U.S. enterprise. However, purchasing a business for E-2 visa purposes presents a unique set of legal and practical challenges. Without proper guidance, even well-intentioned investors can make missteps that delay or derail their visa approval.
Below are some of the most common pitfalls E-2 applicants face when buying a business, and how to avoid them with the right strategy and legal support.
Choosing a Business That Doesn’t Qualify Under E-2 Visa Requirements
Not every business is suitable for an E-2 investment. The U.S. government requires that the enterprise be a real and operating commercial entity, not a passive investment, and that the investment be substantial relative to the total cost of the business.
One common mistake is selecting a low-cost or marginal enterprise (such as a shell company or struggling franchise) that doesn’t demonstrate the capacity to generate more than a minimal living. USCIS and consular officers scrutinize the viability of the business and whether it will contribute to the U.S. economy through job creation or long-term growth.
E-2 applicants should work closely with legal counsel and advisors to avoid this issue and choose a business with active operations, solid financials, and clear growth potential.
Inadequate Documentation of the Investment
The E-2 process demands thorough documentation showing that the investment funds are lawfully sourced, irrevocably committed, and at risk. Many applicants mistakenly believe a letter of intent or small deposit is sufficient to demonstrate commitment, but the standard is much higher.
Failing to provide detailed financial records, wire transfers, escrow agreements, and corporate formation documents can result in visa denial. Moreover, simply investing is not enough—the investor must prove ownership, control, and direct involvement in the business.
At Sharma Law Associates, LLC, we help clients gather and organize the appropriate documentation so that their investment meets the strict evidentiary requirements of the E-2 visa.
Overlooking Immigration Timing in Business Purchase Agreements
Another frequent pitfall is signing a purchase agreement without aligning it with immigration timelines. Some buyers close on a business before their visa is approved, putting their capital at risk. Others include contingencies that appear incomplete or revocable, weakening their E-2 case.
To strengthen the application, purchase agreements should include carefully crafted clauses, such as escrow provisions conditioned on visa approval, that show the investor is fully committed but legally protected.
Not Planning for Long-Term Visa Compliance
Finally, E-2 investors often underestimate the need to maintain visa compliance after entry. Owning a qualifying business is not a one-time requirement—it’s an ongoing obligation. The company must continue operating, remain non-marginal, and employ U.S. workers.
Our firm provides post-approval guidance to ensure clients remain in compliance and are positioned for E-2 visa renewals or adjustments to another immigration status in the future.
Speak With an E-2 Visa Attorney in New York Today
If you’re considering purchasing a business for E-2 visa purposes, Sharma Law Associates, LLC can help you navigate the legal, financial, and immigration complexities with confidence. Call us at 646-760-6339, contact us online, or schedule a consultation to avoid costly mistakes and move forward with a sound immigration strategy.
