Legal Tips for Structuring a Business That Qualifies for an E-2 Visa

The E-2 visa offers a valuable opportunity for foreign entrepreneurs from certain countries to live and work in the United States by investing in a U.S.-based business. However, securing this visa involves more than just starting a company—it requires structuring that company to meet specific legal and immigration requirements. At Sharma Law Associates, our New York immigration attorneys help investors navigate these rules with confidence.

If you’re considering an E-2 visa, here are key legal tips for structuring your business correctly.

Confirm Treaty Country Eligibility

Before forming your business, you must confirm that your home country maintains a qualifying treaty of commerce and navigation with the United States. Only nationals of treaty countries are eligible for the E-2 visa.

Additionally, most (at least 50%) of the business must be owned by individuals or entities of the same treaty nationality. If ownership is shared, ensuring the qualifying investor(s) meet this threshold is essential.

Choose the Right Business Entity

While no single “correct” entity exists for E-2 purposes, the most common structure is a Limited Liability Company (LLC) or a corporation. Both offer liability protection and clarity of ownership.

·       LLCs are typically easier to form and maintain and allow flexibility in management structure.

·       Corporations (especially C-Corps) may be preferable if you seek outside investment or expand rapidly.

Whichever structure you choose, the ownership records must demonstrate the required treaty-national control.

Make a Substantial and At-Risk Investment

To qualify, you must invest substantial capital in a U.S. business. There is no set dollar threshold, but the investment must be proportional to the type of business and sufficient to ensure its success. Typically, this means an investment of at least $100,000 or more, though smaller investments may be approved if the business has low startup costs.

Importantly, the funds must be “at risk”—committed to the business and subject to partial or total loss if the venture fails. Simply placing money in a bank account is not sufficient.

The Business Must Be Active, Real, and Operating

The business you create must be more than an idea or a shell company. It must be a bona fide commercial enterprise actively engaged in operations or ready to begin operations once the visa is issued. Passive investments like stocks or undeveloped real estate do not qualify.

We help clients document business activity through leases, contracts, licensing, marketing efforts, and employee hiring plans.

Show the Business Is Not Marginal

An E-2 business must be structured to generate more than just minimal income for the investor and their family. It should potentially create jobs for U.S. workers and contribute to the economy.

A strong business plan demonstrating projected growth, revenue, and employment is critical to your E-2 application.

Work With a New York E-2 Visa Attorney Who Understands Business and Immigration

At Sharma Law Associates, we combine immigration knowledge with strategic business insight. Our New York immigration attorneys help investors form compliant business entities, draft strong documentation, and present compelling E-2 visa petitions.

Contact our New York immigration lawyers at 646-846-4221, online, or schedule a personalized consultation on our calendar.