The E-2 visa offers a unique opportunity for foreign nationals to invest in and manage businesses in the United States. However, E-2 visa holders often wonder whether they can purchase or start another business while on this visa. While the E-2 visa allows for ownership of additional businesses, there are key limitations and guidelines that must be followed to remain compliant with immigration regulations.
Ownership of Multiple Businesses on an E-2 Visa
As an E-2 visa holder, you are permitted to own another business beyond your E-2 enterprise. This is an important distinction for investors seeking to diversify or explore new opportunities. However, it’s essential to remember that while ownership is allowed, your work authorization is tied exclusively to the business specified in your E-2 visa application.
Restrictions on Working for Other Businesses
The E-2 visa strictly limits your employment to the enterprise for which the visa was granted. This means you cannot work for any new business you start or purchase, including managing daily operations or drawing a salary from that business.
Your involvement in the additional business should be strategic or passive, ensuring you are not performing activities that resemble employment. To stay compliant, ensure the business has employees responsible for the day-to-day operations.
Related Businesses: Using a Service Agreement
There is one way to accomplish the goal of performing services for the other business. If your new business is related to your E-2 enterprise, such as a subsidiary or affiliate or the businesses it makes sense to provide services, you may be able to provide services through a service agreement. However, even in this case, the work must be performed under the umbrella of your role in the original E-2 business. It’s important to maintain a clear distinction between your duties for the E-2 enterprise and your ownership stake in any additional businesses.
Staying Compliant with E-2 Visa Regulations
To avoid issues with immigration compliance, keep the following in mind:
- Avoid active management: You should not represent yourself as an employee of the new business or be involved in its daily operations.
- No salary: You cannot receive compensation from the new business outside of potential passive income like dividends.
- Maintain focus on your E-2 business: Your primary commitment under the E-2 visa must be to the business for which the visa was granted.
If you’re considering purchasing or starting another business while holding an E-2 visa, it’s important to consult with a qualified immigration attorney to ensure compliance with U.S. visa regulations.
Conclusion
While the E-2 visa allows for business ownership, limitations on employment mean that your involvement in other businesses must remain passive. For those seeking to expand their investment portfolio while on an E-2 visa, careful planning is essential to ensure compliance with immigration rules.
If you have questions about your specific situation or need guidance on E-2 visa regulations, feel free to explore our free resources and schedule a consultation with us today.
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