One of the first big decisions in any E-2 journey is the business itself. Should you buy an existing company or start a new one? Can you buy a business at all? And how do you pick something the consular officer will take seriously? We get these questions constantly, so let me pull them together and give you a clear framework for choosing your E-2 business.
Yes, You Can Buy an Existing Business
Let me clear up the most common worry right away. You can absolutely buy a business instead of starting one and still pursue the E-2 visa, as long as you meet the E-2 requirements. Plenty of our approved clients bought their way in.
If you go the purchase route, a few steps protect you. First, get crystal clear on what you are actually buying. Are you buying the assets of the business, or the business entity itself? Settle that question right off the bat, because it changes the deal. Second, do your due diligence. Hire an attorney or an accountant to dig into the company before you commit. Third, get an appraisal. You need to know the fair market value of the assets or the business before you sign any agreement. Beyond those steps, the E-2 requirements are the same as for any other application.
Buy vs. Start: Which Is Better?
So which is better, buying an existing business or starting a new one? The answer is that it could be either. We have guided many applicants to approval doing both, so neither path is the “right” one in the abstract. They simply carry different trade-offs.
Buying an existing business often costs more up front, because you are paying for something already built and running. The upside is that it may take less time to get operational, since the doors are already open. Starting a new business can flip that equation: the investment amount may be lower, but it can take more time to get everything running and to meet all the E-2 requirements. One path trades money for speed, the other trades speed for a lower entry cost. The right choice depends on your budget, your timeline, and the kind of business you want.
How to Pick the Right Business
Whichever route you take, choosing the business well is one of the most important things you will do. Here is what we tell clients to weigh.
First and above all, pick a business you are genuinely excited about and confident you can make succeed. This is one of the things a consular officer really looks for. They want to see enthusiasm, they want to see that you understand the business, and they want to see that you have plans to grow it. Pick something you like, believe in, and feel sure you can help grow.
Second, make sure the investment is substantial. A thin, token investment undercuts your whole case. The money has to be real and meaningful for the business you have chosen.
Third, make sure the business is not marginal. The officer needs to see that this company will do more than just cover your own living expenses. Show how you will hire employees and grow over time. Back it up with real information, and if the business is already performing before you arrive, use that to show the growth and the non-marginal nature of what you are building.
Bringing It Together
Buy or start, the fundamentals hold steady: a substantial investment, a real and operational business, and an applicant who can direct and develop it with conviction. Choose a business you believe in, do your homework before you commit, and build a case that shows growth.
Have ideas you would like to talk through for your E-2 business? Give us a call anytime. We would love to speak with you about your E-2 visa.
About the author
Angie Rupert is the founder of Rupert Law. Her firm works exclusively on E-2 and E-1 visas, helping investors and entrepreneurs from treaty countries move to (and stay in) the United States.
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