Q: What is the Roadmap for E2 visa?
A roadmap to an E-2 visa involves: researching your eligibility based on your nationality and business idea, consulting an immigration lawyer, developing a detailed business plan, securing funding for your investment, establishing a U.S. company, submitting the E-2 visa petition, and attending a consular interview if required; ensuring your investment is “substantial” according to the treaty between your country and the U.S. is key to a successful application.
Q: How to get started?
- INITIAL ASSESSMENT:
- Develop a Comprehensive Business Plan:
Create a detailed business plan outlining your business concept, market analysis, financial projections, and investment details. - Choose a Business Structure:
Select the appropriate legal structure for your business (LLC, corporation) in the U.S. - Secure Funding:
Arrange sufficient funding to make a “substantial” investment in your business. - Check Treaty Eligibility: Consult an Immigration Attorney:
Seek advice from an experienced immigration lawyer specializing in E-2 visas to navigate the process and ensure compliance.
- BUSINESS PLANNING AND SETUP:
- Develop a Comprehensive Business Plan:
Create a detailed business plan outlining your business concept, market analysis, financial projections, and investment details. - Choose a Business Structure:
Select the appropriate legal structure for your business (LLC, corporation) in the U.S. - Secure Funding:
Arrange sufficient funding to make a “substantial” investment in your business.
- E-2 VISA APPLICATION PROCESS:
- Gather Required Documentation:
Collect all necessary documents including passport, proof of funds, business plan, incorporation documents, and any supporting evidence. - Submit E-2 Visa Petition:
File the E-2 visa petition with the U.S. Citizenship and Immigration Services (USCIS). - Consular Interview:
Attend an interview at the U.S. embassy or consulate in your home country if required.
- IMPORTANT CONSIDERATIONS:
- Investment Amount:
While there’s no set minimum investment amount, ensure your investment is considered “substantial” based on your business type and market. - Management Role:
Be prepared to demonstrate your active involvement in managing the business as an investor or key employee. - State Requirements:
Research any specific state regulations that may impact your business operations.
- TIMELINE:
- Preparation Phase:
Several months to a year, depending on business plan development and securing funding. - Application Processing:
Processing time can vary depending on the consulate, typically taking a few weeks to a few months
- Documents Required to Set up a US Company:
- Full Name (for registration)
- Business Name (for US LLC )
- Business Address
- Passport or Government ID (for verification)
- Business Purpose (brief description)
- Dissolution Details (for existing LLC, if any)
- Contact Information (email and phone)
Q: Do I need to have a physical office ?
To qualify for an E2 visa with an e-commerce business, you can establish a physical office in the USA, which is highly recommended to demonstrate a tangible commitment to your business operations and increase your chances of approval, even if most of your sales occur online; this office allowing you to show a dedicated business location while managing costs effectively.
Key points about using an E2 visa for an e-commerce business with a physical office:
Not mandatory but strongly advised:
While the Foreign Affairs Manual (FAM) does not mandate a physical office for an E2 visa, having one helps prove your business is “real and operational” and not just a virtual entity.
Demonstrates commitment:
Leasing office space shows a substantial investment in your business and strengthens your case against concerns about marginality (whether your business can generate enough income).
Operational needs:
Even for an online business, a physical office can be useful for inventory storage, customer service operations, meetings with clients or partners, and potentially staff management.
Considerations when choosing an office:
- Location: Choose a location that is accessible to your target market and suitable for your business needs.
- Size: Don’t necessarily need a large space, but ensure it’s adequate for your current operations and potential growth.
- Lease agreement: Having a signed lease agreement further strengthens your application.
Example e-commerce business models that can benefit from a physical office on an E2 visa:
- Dropshipping:
Manage inventory and customer service from a physical location while sourcing products from suppliers. - Handmade goods:
Utilize the office space for production and quality control of handmade items. - Niche products:
Focus on a specific market with unique products, using the office to manage marketing and customer support.
Q: Is it important to have a US resident director ?
Advantages of a Resident US Director in an LLC
A US resident director can help ensure that an LLC complies with US laws and regulations. This can be advantageous for non-US residents who want to form an LLC in the US.
Benefits of a US resident director:
- Compliance
A US resident director can help ensure that the LLC complies with US laws and regulations. - Representation
A US resident director can act as a representative for the LLC in legal and regulatory matters. - Paperwork
A US resident director can help with the paperwork and documentation required to appoint a director. - Bank account opening
A US resident director can help with opening online and physical bank accounts. - Business Loan and Mortgage
A US resident director can help with getting business loan and mortgage in better rate and terms
Other benefits of an LLC
- Limited liability
An LLC protects the owner’s personal assets from business debts and legal issues. - Tax benefits
An LLC offers pass-through taxation, which means that profits and losses are reported on the owner’s personal tax returns. - Management flexibility
An LLC can be structured in a way that best suits the owner’s needs. - Access to the US market
An LLC provides access to the US market, which has the world’s largest economy.
US Resident Director Responsibility in LLC
A director of a Limited Liability Company (LLC) is responsible for managing the company and representing it to the public. They have a fiduciary duty to act in the LLC’s best interests.
Responsibilities:
- Act in the LLC’s best interests
Directors must put the LLC’s success above their own personal interests. - Avoid conflicts of interest
Directors must disclose any interests they have in transactions with the LLC. - Exercise reasonable care
Directors must act with the level of care, skill, and diligence that a reasonable person would exercise in similar circumstances
Q: Can I get mortgage for a Limited Liability Company ?
To get a mortgage for an LLC, you will typically need to provide the following:
- Articles of Organization: The LLC’s formation documents
- Certificate of Good Standing: Proof that the LLC is in good standing
- Financial information: Bank and credit card statements, tax information, and business financial statements
- Proof of business assets: Details about the assets the LLC owns
- Proof of business income: Details about the LLC’s income
- Property details: Information about the property you want to buy
- Personal information: Your personal income, debt, and credit information
Lenders will also consider your debt-to-income (DTI) ratio, which is the percentage of your income that goes toward debt payments. A low DTI ratio indicates that you have enough money to afford a mortgage.
Lenders may make it difficult to get a mortgage for an LLC because they want to protect your personal assets. They may ask you to personally guarantee the loan.
Q: Buy property under personal or business in the US ?
Whether to buy property under your personal name or a business (like an LLC) depends on your individual situation, but generally, for a primary residence or a small number of investment properties, buying under your personal name is simpler, while for significant real estate investments or situations where you want maximum liability protection, buying under a business entity is often recommended; always consult with a financial advisor or attorney to determine the best option for you.
Key points to consider:
- Personal Name:
- Pros: Easier to qualify for a mortgage, simpler paperwork, potential tax benefits depending on your situation.
- Cons: Less liability protection, personal assets could be at risk in a lawsuit.
- Business Entity (like an LLC):
When to consider buying under a business:
- Multiple investment properties:
If you plan to own multiple rental properties, using an LLC can help manage each property separately and protect your personal assets from potential liabilities associated with one property. - High-risk ventures:
If you are involved in a business with high potential legal risk, buying property under an LLC can shield your personal assets from lawsuits. - Privacy concerns:
If you want to keep your property ownership private, an LLC can obscure your personal information on public records.
Q: Can a Non-Resident mortgage a property in the USA ?
Yes, non-residents can get mortgages to purchase property in the United States, but the process can be complex.
Eligibility
- Lenders will consider your residency status, visa type, and the intended use of the property.
- Permanent residents with a green card are generally considered less risky.
- Non-permanent residents with a work visa or special employer-sponsored visa may be eligible.
- Foreign investors may be eligible for a debt-service coverage ratio loan.
Application process
- Get pre-approved for a mortgage to determine how much you can borrow.
- Gather required documentation, including:
- Proof of identity, such as a passport or visa
- Proof of income, such as pay stubs or tax returns
- Proof of assets, such as bank statements or investment accounts
- Credit history, such as a U.S. or international credit report
- Work with a real estate agent.
Loan terms
- Non-resident mortgages may have higher interest rates and larger down payments than traditional mortgages.
- ITIN mortgages may be more expensive than traditional mortgages.
For more details, email us at cs@e2supportcentre.com