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What are Common E-2 Investment Expenses? How can I increase my E-2 Investment Amount?

By October 14, 2015May 7th, 2021E-2 Visa, Immigration, Investor Visas

An E-2 Visa is a great visa option for a business or individual who wants to start a business in the U.S.. The full set of E-2 visa requirements can be found by clicking here. One E-2 visa requirement is that the investor has to invest a “substantial amount” of money in the U.S. and the actual amount depends on the type of business that is being started. If the business is one that does not have high start-up costs (e.g. a consulting company) then the investor would have to spend 100% of the amount to get the business up and running and the amount could be as low as $50,000. If the business were to be a car manufacturing plant, then a substantial amount may be 80% of the cost to start the business and could be hundreds of thousands of dollars.

Three questions that are regularly asked by our clients are:

  1. How much do I have to spend for my E-2 Investment?
  2. How low can my investment be?
  3. What else can I spend money on as I have already spent all that I need to?

The answer related to how much to spend really depends on a number of factors and we explore this question in an article “How Large Does My Investment Amount Have to Be for an E-2 Visa?” you can access by clicking here. One key take away from this article is that even though a service oriented business may cost less than $10,000 to start up, you will often be in a position where you have to invest significantly more than that to get the visa. The thought of spending more money is not very intuitive but it is required in order to get the E-2 visa. Accordingly, the lowest investment amount that we have ever processed is $50,000 for a consulting business where the applicant spent $15,000 and put $35,000 in a business bank account. Most applicants have a significant amount of difficulty coming up with things to spend money on so we have created a list here of some items that we regularly see that increase the investment amount. This list answers the question; “What else can I spend money on for my E-2 Investment?”

Common E-2 Visa Expenses

  • Website set up & hosting
  • Computer
  • Printer/Scanner
  • Inventory (Can be shipped from another Country and does not have to be purchased in the U.S.)
  • Furniture
  • Trademark
  • Intellectual Property purchase or development
  • Employee payroll or Independent contractor payments
  • Legal Fees
  • Lease (some prepay rent for a number of months as you can only include what you paid)
  • Business entity set up costs
  • Office supplies
  • Phones
  • Utilities
  • Training courses (restrictions apply)
  • Tablets/IPad
  • Licensing fees
  • Sponsorship or Trade show appearances
  • Purchase of real property (land building)
  • Car/Truck if exclusively used for business (e.g. a Food delivery business or a Taxi service). It would also be beneficial to license the vehicle as a commercial vehicle.
  • Software
  • Advertising

You should note that E-2 expenses do not have to be made in the United States and can be items that you purchased in the past (even before the business started) as long as you have a receipt.

Poor E-2 Expenses (These expenses are not usually included as they are disregarded and are seen as “reaching” by most Consulates.)

  • Travel Flights (unless for a very specific conference or business related activity).  Travel to and from the U.S to set up the business are usually not included in the investment amount.
  • Travel Accommodations (Hotel)
  • Meals
  • Transportation (taxis, etc.)
  • Entertainment
  • School
  • Expenses directly reimbursed by a client/customer
  • Expenses paid to related parties

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14 Comments

  • ANDRES says:

    Hello Ian, thanks for the info.
    I have a question, I have a company setup in the Netherlands and would like to relocate is this something eligible for an e2 visa? or are we required to reinvest in usa?
    we have an online shop and have a lot of stock and the websites.

    also, can this visa lead to permanent residence?

    • IanScott says:

      Yes. you are required to invest in the U.S. PLease contact us if you would like to set up a consultation. I have added details below.

      Thank you for contacting us. Please find attached our credit card link to make your $250 consultation payment for a one hour consultation. If you end up hiring the firm and your bill is greater than $2,500, we will apply this consultation fee to your final bill. Once we receive the payment, we can schedule and confirm your appointment. Please reach out if you have any questions.

      https://ScheduleScottLegalConsultation.as.me/

      Kind regards,

  • Sung says:

    I’m planning to set up an E-2 investment business in US by Mar 2019. And this business require to either purchase or lease (may be long-term) Cessna 172. I am intending to invest 51% of the total investment and the rest will be combined with other investors that are not from E-2 treaty countries. And for the better understanding, these investors do not seek any ownership or E-2 VISA, they will be either silent partners or may be interested in investing in my business.

  • Prakash Patel says:

    Hello Ian,
    For business funding can I get gift money to invest in business from my sister who is in usa ?

  • Russell says:

    Thank you so much for all this valuable information.

    I am planning to start a consulting business. I think I have a strong business plan, strong supporting documents and sufficient cash to inject if need be. The problem is as you know it does not cost much to start a boutique consulting firm. Do you think that it would work if I acquire an office space say at a price of USD 150-200K and spend some say other 50K for legal fees, furniture, equipment, etc?

    Thank you so much.

  • Fahd says:

    Hello Ian,
    I m very interested by the E-2 visa. I have 2 questions Ian

    1/ Is it possible to apply for E-2 visa 2 times? Last Year I applied for a E-2 visa, they refused.
    So this year i m planning to create a new company (new business) and apply for a New E-2 visa.

    2/ I will create my LLC in January. But I would like to know if it s possible de buy computer before this date.

    Thank you very much.

    Fahd

    • IanScott says:

      Thank you for contacting us. You can apply more than once but the facts and circumstances should have changed. I am not sure if you hired an attorney last time but you should this time if you want to increase chances of success as the consulate will see your denial. Kind regards.

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