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Identifying Poor Expenditure Choices for E-2 Visa Applicants

By May 27, 2024E-2 Visa
Expenditure folder

Investing in the U.S. as an E-2 visa applicant involves strategic financial planning and understanding of what qualifies as a substantial investment. While we discussed beneficial expenditures in the first part of this series, it’s equally important to recognize expenditures that might not favorably impact your visa application.  Not all expenditures have an equal impact on an E-2 visa application. Strong expenditures include amounts spent on equipment, furniture, rent, employees, marketing and other things that directly relate to the business.

Common Missteps in E-2 Visa Investments

  1. Personal Expenses Investing funds in personal expenses such as food, hotels, or travel is a common mistake among E-2 visa applicants. These expenditures are considered personal rather than business-related and do not contribute to proving a substantial investment in a U.S. enterprise, which is a core requirement of the E-2 visa.  Education and training expenses are also usually considered personal in nature.
  2. Vehicle Purchases Although a vehicle might seem like a necessary business expense, it often doesn’t qualify as a substantial investment unless there is a direct link to the business operations. For example, purchasing a car for personal use or that doesn’t serve a business function (like delivery or transportation services directly related to the business) is typically viewed unfavorably by visa adjudicators.
  3. Legal Fees While necessary, legal fees associated with the preparation and filing of the E-2 visa application itself are not considered the best use of funds from an investment standpoint. These expenses do not enhance the business’s capacity to support the investor and create jobs, which are key considerations for E-2 visa approval.

How to Avoid These Pitfalls

Applicants should focus on direct business investments that enhance the company’s value and operational scope, such as purchasing essential equipment, investing in inventory, or hiring staff. These expenditures directly contribute to the business’s growth and are pivotal in meeting the E-2 visa requirements.

Steering clear of poor investment choices is vital for E-2 visa success. To ensure your financial decisions support your visa application, access our detailed guides or schedule a consultation with our immigration experts.

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