E2 Visa for Entrepreneurs

E2 Visa for Entrepreneurs

You don’t have to be an American citizen or have residency here to start a business in the U.S. Your main ticket to business success in the U.S. is the E2 visa, as well as an awareness of the laws pertaining to foreign nationals who operate businesses in the U.S.

The E-2 visa is one of the preferred visas for foreign nationals who wish to start a business in the U.S. To qualify, you must:

• Be a national of a U.S. treaty country;
• Have already invested or are actively pursing a substantial capital investment in the U.S.;
• Are entering the U.S. only to develop and direct your investment in a business.

The EB-5 visa is also available for foreign nationals who are investing in a new commercial enterprise, or an existing enterprise where the investment will provide at least a 40% increase in net worth or number of employees.

To get a U.S. investor EB-5 visa, you will need to invest capital worth at least US$1 million ($500,000 if in a high unemployment area) and “establish a new commercial enterprise” in one of the following ways:

• Start a new business;
• Purchase and restructure or reorganize an existing business; or
• Purchase and expand an existing business so that the result is a 40% increase in the business’ net worth or a 40% increase in employees.

In addition, your investment must result in the creation of 10 jobs that require at least a 35-hour workweek over a two-year period.

Business entity selection and taxation

Foreign nationals cannot own shares in an S-corporation, so most elect to operate a U.S. business as a C-corporation. Your business will be taxed the same as a U.S. corporation on income associated with your U.S. business. If you also operate foreign branches, your corporation is taxed on its worldwide income. There are other complexities that should be discussed with your legal advisor.

Federal and state laws

You will be required to comply with all state and federal laws in the U.S. jurisdictions where you do business. You will need to be sure your intellectual property is protected in each jurisdiction and that you comply with state and federal employment laws. If you intend to issue any unregistered shares in your business, you will want to exempt those shares under the Securities Act of 1933. The most commonly used exemption is Rule 506 of Regulation D, which allows you to raise an unlimited amount of capital from accredited investors.

Applying for an E2 visa requires extensive documentation, and should not be undertaken without the counsel of an experienced business immigration attorney.

Business owners seeking to protect their business interests should seek a qualified, competent advisor for assistance. Contact one of the experienced Florida business attorneys at Jurado & Farshchian, P.L., at (305) 921-0440, or email us at info@jflawfirm.com. We offer free consultations to business owners seeking to find the right attorney to meet their business’ legal needs.

 Share

The post E2 Visa for Entrepreneurs appeared first on Jurado & Farshchian, P.L. Business Lawyer, Real Estate Lawyer, Immigration Lawyer.