E-2 Investor Visa: Starting or Purchasing a Business in the USA

E-2 is a temporary visa category that is considered for a national of an eligible treaty country to develop and manage a business by making a significant investment in a bona fide business in the United States. Türkiye is among the agreement countries. However, establishing a company in the USA, opening a bank account, or depositing a certain amount into the account does not alone provide E-2 eligibility. ¹²

Evaluation; It considers the adequacy of the investment relative to the business, the source of the money and its risk, the reality of the business, its non-marginality and the management role of the investor. There is no fixed minimum dollar amount in the legislation that applies to all businesses. ¹

Who can be evaluated for E-2?

Individuals who are citizens of the appropriate agreement country and meet the necessary investment and management conditions may be considered. The business must also have appropriate treaty country ownership. The investor's authority to develop and direct the business is explained through share and control documents. ¹²

It may be possible to establish a new business or purchase an existing business. However, the actual commercial structure, opening or transfer plan, necessary permits and financing of the selected model should be examined. Whether a business that may be eligible for E-2 is commercially profitable is also an issue that needs to be evaluated; Visa eligibility does not replace investment consultancy.

How much investment is required?

There is no general rule of thumb for a fixed lower limit of $50,000, $100,000, or $200,000. It is important that the investment is proportional to the total cost of the business and the resources required for its operation. In lower-cost businesses, the ratio of investment to total cost can be particularly decisive. ¹

The sales price of a business is just the starting point. Real needs such as equipment, rent, license, personnel and working capital are also evaluated. Allocating the entire budget to the purchase price and not disclosing the resources that will enable the operation of the business may raise questions about the reality of the plan. This is not a fixed list of mandatory expenses but an approach to assessing the nature of the investment. ¹

Source of money and investment at risk

The investor must have control of the funds, the source must be legal, and the money must be tied to the business under commercial risk. Unused money in a personal account alone is not considered a completed investment. The trail from the source of the funds to their use in the business should be disclosed. ¹

Resources such as savings, real estate sales, gifts or loans may require different documents. If a loan is used, the nature of the debt and collateral is important; Debt secured by the company's own assets is not considered the same as the source on which the investor assumes personal risk. ¹

Is the business real and non-marginal?

E-2 is not designed to hold assets that are expected to increase in value only passively. The business must have real, active commercial activity or a suitable structure ready to start operating. Purchasing a home for personal use only does not replace the requirement to start a business. ¹

Marginality analysis considers the capacity of the business beyond merely providing a minimum subsistence for the investor and his family. Future capacity in the new business can also be evaluated; However, assumptions must be realistic and supported. Personnel plan, sales approach and activity schedule can be explained in this context. ¹

Change of status in the USA with a visa from Turkey

Visa application from Turkey to the consulate is prepared according to the current E-2 instructions of the relevant representative office. Within the United States, an eligible person may consider a change of status or extension through I-129. These two processes are not the same thing. ¹

The fact that USCIS grants E-2 status within the USA does not mean that an E-2 visa is printed on the passport. Appropriate visa and entry requirements may also be required for return after leaving the United States. The visa validity in the passport and the authorized stay period in the I-94 should also be checked separately. ¹

Situation of spouse and children

Eligible spouse and unmarried children under 21 are eligible for derivative E-2 status. The spouse may have status-based work authorization with appropriate E-2S registration; Children's E-2 derivative status does not grant the same right to work. Each family member's I-94 and status record should be checked separately. ¹³

E-2 is not a direct Green Card. If there is a long-term permanent residence goal, the conditions of another category are examined separately. Successful business does not automatically lead to transfer to EB-1C, NIW or another Green Card category. ¹⁴⁵

What documents should be prepared initially?

Citizenship, investment source, partnership and control documents; purchasing or establishment records; Actual expenses and operating plan should be evaluated together. In the review to be carried out with Clinch Law Firm, the focus should be not only on the total of the investment but also on its legal nature and the actual operating plan of the business. ¹