5 things to consider when investing in E2 Visa

Updated Time 14 Mar, 2020, 11:30 (UTC+08:00)

The E2 Visa becomes more popular among investors as the EB-5 immigration program is getting more difficult by time. However, many investors also failed to invest in the E2 Visa immigration program. So what are the considerations when investing?

1. Research and choose a safe and stable business model

So far, there are countless investors who have invested in the US to develop their own business models. Therefore, the United States has become a highly competitive market place.

5 things to consider when investing in visa E2

There were business models that have been successful in other countries but failed in the US. In addition, opening a new business must be careful when dealing with related parties such as landlords, suppliers, transportation companies, etc. to conduct business. Many businesses quickly fail due to loose cooperation with partners. Therefore, before you start investing in a business to apply for an E2 Visa, you should make sure that the type of business is safe and valid.

Alternatively, you can focus on franchising with a well-established store chain. At the same time, that brand should have a safe cash flow and total assets along with a solid business foundation.

2. Consider carefully when buying businesses

Questions you need to ask before buying a business such as why the business is sold? Is the operating situation good? What is the cost to buy the business? The majority of E2 Visa investors will spend from US $ 200,000 to over US $ 350,000 to acquire a business. Usually a good business will be sold at a price from 5 to 6 times the total revenue of the business.

Then you need to consider more factors such as:

Does the relationship of the owner affect the profit?
Will changing owners affect profitability?
Can you take over this business well?

Because of these factors, investors often pay from US$ 5,000 to US$ 10,000 to analyze the financial indicators and business situation of the business. The reason is because there have been many cases where investors have bought fraudulent businesses.

3. Learn about business partners as well as their responsibilities when conflicts arise

The first thing when working with business partners is to hire a lawyer to review documents / contracts from partners. In particular, the documents include franchise agreements, business operating terms between the parties. Things you should consider include:

Responsibilities among the parties when the business situation is unfavorable.
What happens when you are forced to leave the US?
In a bad business situation, what is your plan to divest?
What makes your partner want to work with you?
Why do they need capital from foreign investors instead of bank loans?

Besides, you need to be careful with entrepreneur partners who have changed business fields frequently and often moved. Such entrepreneurs will be less likely to stick with a partnership.

Determine business goals and companions

4. Determine business goals and companions

You need to determine how much profit your business needs to achieve in order to extend your E2 Visa. You need to determine how much time and money to invest to meet the criteria set by the US Department of State.

Due to cultural and linguistic differences, many investors only run businesses to generate enough sustained profits. Instead, the investor may choose to do business based on the commitment of the franchisor or hiring a reliable operator.

5. Say no to low-profit businesses

Each type of business has different risks and opportunities. In order to minimize risks, investors should choose businesses that are not only safe but also capable of producing a lot of profits. For example, investing in a gas station or a retail store has a steady return but is not highly profitable.

Since applying for a E2 Visa, it will be associated with an investment, you should take some verification step and work with a professional adviser to minimize the risks that may occur.

With more than 10 years of experience in immigration and citizenship, Global Services Group (GIS) is a successful consultant for many cases of issuing green cards through the E2 Visa immigration program.

If you are interested in the E2 Visa immigration program, please contact GIS at the following information: