E2 Visa Provides A Pathway to Legal Immigration
An E2 Visa may be obtained by foreign entrepreneurs from countries of origin which have a Treaty of Trade and Commerce with the United States. Once obtained, an E2 Visa holder (and their family) may reside in the United States for two years (and may be renewed thereafter). A purchase of a business in the U.S. may qualify for an E2 Visa so long as the subject business is ‘bonafide’ and the E2 Visa holder commits a ‘substantial’ amount of financial or human capital toward the purchase of the business. In general, franchises with a proven business model and businesses which are labor-intensive requiring multiple employees are the easiest pathways toward obtaining an E2 VIsa.
Businesses Attached to Real Estate Qualify for E2 Visa
- Businesses that have attached real estate should clearly meet the threshold requirements for an E2 Visa purchase.
- Common examples of businesses attached to real estate include car washes, miniature golf courses, and gas stations.
- Often these business-real estate combinations are multi-million dollar purchases, so may not be feasible for some prospective E2 Visa holders.
- A key aspect of whether a business is deemed to be ‘bonafide’ is whether it will be in existence for the long term (at least two years).
- This is clearly met when the business itself includes the real estate.
- Since the E2 Visa purchaser will own the real estate, there is no risk of not obtaining a sufficient lease of at least two years in order to meet the ‘bonafide’ standard.
- Further, the sheer size of the total purchase price (including the real estate) will easily surpass the requirement that the purchase be a ‘substantial’ amount of financial or human capital (the typical monetary threshold is about $100K).
Retail Stores with Long Term Leases Qualify for E2 Visa
Clothing and apparel stores, convenience stores, and home furnishing stores all make excellent candidates for an E2 Visa purchase. The high sales volume of such stores should meet the ‘bonafide’ standard of an E2 Visa purchase. So long as the majority of sales and profits are reported on the company’s tax returns, the immigration authorities should be convinced that the store is a ‘bonafide’ enterprise and operating for the purpose of turning a profit. It is imperative that the prospective E2 Visa holder secure a long term lease with the landlord prior to the purchase. Typically, landlords of retail plazas do not have a problem extending the lease (although on more favorable terms for the landlord) because they usually want a long term tenant in place.
Smaller Retail Stores May Still Qualify for E2 Visa
For retail-related businesses with little or no employees, the E2 Visa applicant may run the store themselves, and thus commit their own human capital to the store’s operation. This is actually quite common for many smaller retail businesses, so the E2 Visa holder should be able to convince the immigration authorities that they meet the threshold of committing a ‘substantial’ amount of financial or human capital toward the purchase. With a long term lease and financials that show the store’s sales volumes and profits, a small retail shop may be the perfect business for a prospective E2 Visa holder who does not have a large budget.
Healthcare Companies Qualify for E2 Visa
In South Florida, healthcare companies are always in very high demand and make excellent investments for astute business owners or investors. Examples of healthcare companies that qualify for an E2 Visa include home healthcare companies, physical therapy centers, nurse registries, and durable medical equipment companies. Healthcare companies typically have a large amount of goodwill (or non-tangible assets) by virtue of their valuable licenses, patient base, referral sources, and insurance contracts. The valuable licenses and established relationships with patients or referring physicians are often established profit-centers, thus creating a ‘bonafide’ profit-seeking enterprise.
Start-Up Healthcare Companies May Also Qualify for E2 Visa
- Some healthcare companies are start-up opportunities without any reportable sales or profits.
- Examples of this type of opportunity (which may still qualify for an E2 Visa) include accredited home health agencies or nurse registries that have been certified by AHCA (the Agency for Healthcare Administration) to see patients but have not yet started to do so.
- Believe it or not, such accredited agencies or registries (that have never treated any patients) still may sell for several hundred thousands of dollars.
- This is because investors and entrepreneurs would rather pay a lump sum to obtain a certified agency or registry rather than spend many months and enormous consulting costs in order to obtain their own license and certification from AHCA.
- These start-up healthcare opportunities may still represent a ‘bonafide’ investment because of the value of the license and accreditation.
- Further, the sheer cost of purchasing such start-ups will also meet the threshold of a ‘substantial’ business opportunity.
- For prospective E2 visa holders with an interest or passion in the healthcare industry, purchasing such a start-up is certainly worth exploring.
Prospective E2 Visa Holders Should Seek Professional Guidance
Many other types of businesses in various industries meet the ‘bonafide’ and ‘substantial’ requirements for an E2 Visa. For individuals residing overseas interested in purchasing an E2 Visa eligible business in South Florida, it may seem overwhelming to go online and view the hundreds of ‘businesses for sale’ advertisements. Seeking the help and guidance of a local business broker will greatly help with this process. The business broker should be able to narrow down the prospective E2 Visa holder’s list of possible business purchases by taking note of their preferred industry, budget, and specific geographical area. Additionally, prospective E2 Visa holders should definitely consult with an immigration attorney for legal help and assistance throughout the process.
Give Martin at Five Star Business Brokers of Palm Beach County a call today for a FREE evaluation of your business.