Buying an existing business for an E-2 visa is a strong strategy, offering immediate proof of a "bona fide" enterprise with existing financials, employees, and customer base, helping meet requirement like the business being "non-marginal" and "substantial," though you must still perform due diligent and ensure the business is active, for-profit, and not passive, often using an escrow account for funds until your visa is approved.
Advantages of Buying an Existing Business
- Reduce Risk: Buying an existing business could reduce not only a financial risk but also the much lesser risk of being denied since it is much easier to prove that your business is non-marginal and the investment is substantial. It also helps you reduce your anxiety from the perspective of pure E-2 Visa as you know that you will be committing only if your E2 Visa is approved. Furthermore, it may offer an established customer base, operations, and market presence, reducing startup uncertainties.
- Faster Qualification: Can speed it the positive decision of your E-2 Visa approval because you will be able to meet faster the "substantial investment" and "at-risk" requirements compared to starting from scratch.
- Established Proof: Provides financial records, contracts, and existing employees, showing it's a real, income-generating business, not marginal.
Key Considerations for your Purchase
- Due Diligence: You must check carefully all the financial records, industry, scalability and operations for a least 5 years or more. Make sure it offers a strong records for at least 5 years. This is nearly the most important task for you and you must do with the help of knowledgeable professionals because you may need these documents for your E-2 Visa filing.
- Substantial & At-Risk Investment: The funds must be irrevocably committed (often via escrow) and substantial enough to develop the business, not just support you, and maybe your family, if any.
- Licensing: Verify all federal, state, and local licenses and permits are in place or will be obtained. Also you must make your the business is a real, operational, for profit business, not passive (e.g. real estate purchasing, stock market investment, etc).
The Process & Funds
- Escrow: Use an escrow account to hold funds; they are released to the seller upon E-2 visa approval. meeting the "irrevocably committed" rule.
- Purchase of the Business: You generally need to commit funds or finalize the purchase before applying for the visa, though suing an escrow account conditioned on visa approval works.