When applying for an E-2 visa, investors must demonstrate that they have made a substantial investment in their U.S. business. A common question that arises is whether money paid to oneself—such as compensation, payments to a related company, or payments to family members—can be counted as part of the required investment. The clear answer is no.
Why Money Paid to Yourself Does Not Count as an E-2 Investment
The U.S. government does not consider payments to yourself as a valid investment for E-2 purposes. This is because an E-2 investment must involve at-risk capital that is spent on the development and operation of the business. If you are simply paying yourself, the government sees this as circular money movement, rather than an actual investment in the enterprise.
Common Scenarios Where This Issue Arises
- Sweat Equity
- Some applicants attempt to assign a dollar value to their own labor, expertise, or time spent working on the business. However, the E-2 visa regulations do not allow sweat equity to count as part of the investment. Only actual, traceable financial expenditures toward business operations are considered.
- Payments to a Related Company
- If an investor owns or controls another company (domestically or internationally) and pays that company for services related to the E-2 business, these payments will not be counted toward the investment amount. The government considers this an internal transfer, not a legitimate expenditure for business development.
- Payments to Family Members
- Money paid to family members (e.g., hiring a spouse or sibling as an employee or consultant) raises red flags with the immigration officer reviewing the case. The government may view these payments as an attempt to inflate investment numbers, making them ineligible as part of the required E-2 investment.
What Counts as a Valid E-2 Investment?
To ensure your investment meets E-2 visa requirements, the money must be spent on bona fide business expenses and external third parties who are not related to you. Examples of qualifying investments include:
- Purchasing business equipment (computers, furniture, machinery, etc.)
- Signing a commercial lease for office or retail space
- Hiring independent employees who are not family members
- Marketing and advertising expenses
- Professional services fees (lawyers, accountants, business consultants)
- Inventory and supplies necessary for business operations
How to Avoid Issues with the Investment Amount
To strengthen your E-2 visa application and avoid challenges related to the investment amount:
- Keep detailed financial records to show exactly how the investment funds were spent.
- Avoid any payments that could be seen as self-compensation or internal transfers.
- Work with an immigration attorney to ensure your investment structure complies with U.S. immigration laws.
Conclusion
While it may be tempting to include money paid to yourself, family members, or related entities as part of your E-2 investment, these expenses will not count toward meeting the investment requirement. To improve your chances of visa approval, ensure that all investments are traceable, spent on legitimate business expenses, and made to third parties.
If you have questions about how to structure your E-2 visa investment, schedule a consultation with our experienced immigration attorneys to ensure your application meets all legal requirements.
