(954) 524-8888 or Toll Free 1-800-700-VISA
·
larry@e2lawyer.com
·
Mon - Fri 9AM-5PM
Free consultant

E-2 Investors

E-2 Treaty Investor - Nonimmigrant Visas

Legal Requirements
  • The investor, either a real or corporate person, must be a national of a treaty country.

  • The investment must be substantial. It must be sufficient to ensure the successful operation of the enterprise. It cannot be marginal.

  • The investment must be proportional to the nature of the business.

  • The investment must be a real operating enterprise with verifiable

    and legitimate business activities.

  • No job creation requirement.

  • Franchise acquisition acceptable.

  • Conditional agreement structured prior to final interview.

  • The investment must generate more income than just to provide a living to the investor and family, or it must have a significant economic impact in the U.S.;

  • The investor must have control of the funds, and the investment must be at risk in the commercial sense;

  • Investor must be able to demonstrate lawful origin, source and path of investment funds;

  • The investor must be coming to the U.S. to develop and direct the enterprise. If the applicant is not the principal investor, he or she must be employed in a supervisory, executive, or highly specialized skill capacity. Ordinary skilled and unskilled workers do not qualify;

E-2 Investors Useful Information

1

E-2 developer due diligence checklist

2

Investor chart E-2 complete structure

3

Investor communications

4

Investor considerations

5

Investor organizational summary

6

E-2 project summary checklist

7

Investor organizational summary

8

Investor sources of funds and filters

9

U.S. Tax Residency

E-2 Investor Chart Structure

Prospective E-2 Investor (Selected Countries)

Prospective E-2 Investor (Selected Countries)

Owns Any New or Existing U.S. Entity, Minimum $150,000 capitalization (LLC, Inc., Solo,)

X % ( e.g. 5% to 100%) Investor’s Entity Acquires Percentage in New or Existing Operating Commercial Enterprise + Advisory/Board Position

Master Entity Owns 100% of U.S. Operations

E-2 Investor Documents

  • S. & Foreign Bank statements of deposits
  • Evidence of money transferred or path of funds
  • Loan or Mortgage Agreement, Promissory Note, Security Agreement, Borrowing
  • Foreign Business registration records
  • Tax Returns (5 years)
  • Monetary judgments (15 years)
  • Personal Documents
  • Passport (must be valid)
  • Criminal Records
  • Foreign Banking Source
  • Bank Wire Instructions
  • Financial Commitment and Signature
  • Legal Fees
  • Government Filing Fees
  • Source of Funds
  • Photographs (8)
  • Financial Statement (personal)
  • Birth Certificates
  • Death Certificates (if applicable)
  • Divorce Decrees
  • Net Worth Statement
  • G-28 Notice of Appearance of Attorney
  • Translations of all foreign language documents

E-2 Due Diligence Checklist Project Development

I. General Property Information
a. Aerial Maps
b. Property Photographs
c. Title report
d. Appraisal
e. Demographics
f. Discussion of competing properties
g. Purchase Agreement or Option Agreement
h. Phase One Environmental Report
i. Risk Assessment
j. Zoning Information

II. Financing Information
a. Lender Information
b. Dollar amount of loan
c. Term of Loan
d. Interest Rate
i. Fixed
ii. Variable and what index and margin
e. Required signers
f. Recourse requirements
g. Loan Commitment
h. Supporting Documents for financing commitments

III. Investment Objectives
a. Purpose of Investment
i. Cash flow from operations
ii. Value added
iii. Capital appreciation
iv. Tax benefits
v. Equity build up thru loan payoff
vi. Job creation
b. Sources and Uses of Funds Statement
c. Proposed duration of investment
d. Projections as to the first year of operations
e. Projections of subsequent years of operations
f. Assumptions used in making financial projections

IV. Ownership Entity
a. LLC or LP
b. Owner ship Entity (prospective structure)
i. Who is the Managing Member or Sponsor?
ii. Who will the Members be?
iii. Compensation paid to : GP / Managing Member/ RC or Sponsor during each phase
1. Acquisition
2. Operations
3. Disposition
c. Will this investment be eligible for EB-5
i. Direct
ii. Regional Center
d. Banking arrangements
e. CPA
f. Organization documents and filings

V. Risk Factors Specific to:
a. Proposed property
b. The current market
c. The investment type

VI. Sponsor Track Record
a. Education
b. Work experience
c. Track record on other projects of similar type or other

VII. Specific Information re: Land Project
a. Entitlements
i. Do any exist currently
ii. Does the project require entitlements
iii. If you do require entitlements what agencies are involved?
iv. if entitlements have been applied for previously what is the status
b. Budget re: Entitlements
c. Cost estimates:
i. Design professionals
ii. Consultants (all required)
iii. Time (estimated)

d. Projected sales and absorption figures
e. Proposed budget for construction

VIII. Information for Purchase of Existing property
a. Current or Proposed use of building
b. Property condition report
c. Statements (3 years Profit & Loss)
d. Balance sheets (3 years)
e. Proposed job creation with supporting documents
f. Proposed value after improvements are completed with supporting documents
g. Information on existing or proposed tenants
i. Financial reports
ii. Bios of personnel
iii. Business plans
iv. Track records
h. Formation documents
i. Copy of proposed lease or leases
j. Corporate or personal guarantees
k. Business plan of Sponsor
i. Decrease vacancy
ii. Increase rents
iii. Decrease expenses
iv. Job creation

IX. Investment
a. State department form
b. Job creation analysis & descriptions
c. Economic Impact Analysis on project (Geographic & Demographic)
d. Business Plan
e. Feasibility StudiesAn accordion content area

E-2 Investor - Communications

E-2 Investor Project Considerations

  • Investor project selection: independent decision
  • Investor and agent project selection
  • Access and opportunities to visit on-site
  • Advisory professionals
  • Contract; contract disclaimer
  • Subscription Agreement signature
  • Past performance
  • Due diligence period
  • Due diligence documentation
  • Banking funds flow
  • Staff onsite oversight
  • Visa office
  • Insurance verification
  • General insurance
  • International accounting and audit
  • State tax collector
  • State banking regulation
  • Due diligence and case standard
  • Media; local press
  • Police forensics; state/local
  • Fee agreement (English & native language)
  • On site visits
  • Time lapse / Cancel
  • No personal or contractual relationship
  • Accreditation/ knowledge of Investor
  • SOF Analysis

E-2 Investor Family Relocation Considerations

  • Map
  • Year-round weather
  • Crime statistics
  • Air access
  • Places to go
  • Things to do
  • Real Estate style and prices
  • Schools
  • Neighborhood
  • Commute distance
  • Traffic
  • Education
  • Job options
  • Job options for spouse and children
  • Familiarization trip
  • Health care facilities
  • Local amenities
  • Family partnerships / for assimilation
  • Transportation
  • Headquarter presence / office
  • Restaurants
  • Shopping
  • Security
  • Existing family members
  • Air, Light, Water Security, Traffic

Investor Organizational Summary

Limited Liability Company (LLC ) – State Charter (As at April 17, 2020)

  • To receive Membership Interest in LLC
  • Direct or Indirect/Induced Job creation preferred
  • Operating Agreement
  • Contract with Management Company (as needed)
  • Possible Investor Lender Group (less than 49%)

E-2 New Investors Considerations

  1. Safety of investment
  2. Return of principal in the business plan (5 years)
  3. Fair rate of return during process
  4. Personal investment by the applicant
  5. International Travel Ease
  6. S. Travel Ease; duration of stay in 2 year segments
  7. Synchronized processing to ensure timely delivery of visa
  8. Personal and Family Security
  9. Job creation model
  10. Business & economic plans
  11. Exit strategy
  12. Minor children to receive U.S. Education (Under 21 years old)

E-2 Project Summary Checklist

Name: ……….
Type: ……….
Location: ……….
Investors: ……….
Capital Stack (projected): ……….
Job Creation: ……….
Documents Status/Availability: ……….
Experience: ……….
Special Comment: ……….
Local Support: ……….
Timeline: ……….
Equity: ……….
Phases: ……….
Risks: ……….
Equity/Loan: ……….
Summary/Recommendation: ……….
Date of Report/Time: ……….

Investor Cost & Benefit Analysis

Cost:

  • $100,000 investment; (+/-) Administrative and Immigration Processing

Benefit:

  • Participation in E-2 Program Platform;
  • Management company services allowed
  • Immediate projected cash flow from qualified businesses
  • Includes spouse and all minor children under age 21 at time of filing
  • Immigration Legal Services and Consular Filing
  • Government Filing Fees & Coordination
  • Spouse Work Authorization
  • Qualifying Countries: (Charts)

Investor Eligibility Issues

  • Age out issues: “Child” must be under 21 years old.
  • Admissibility issues based on technology, security, U.S. national interest: Extended reviewed
  • Criminal record: Will be reviewed or waiver required
  • Out of status or visa violations: Consular rejection risk
  • Military history: Genocide, enemies of the state
  • Political history: Communism
  • No waiver of eligibility options
  • Tax considerations + Violations

Investor Qualifications & Considerations

  • Review of Business Plan or Summaries
  • Valid Passport
  • Numerous nationalities may qualify (see list)
  • No Criminal Record (under U.S. law)
  • Availability of Funds in 60 Days
  • List of immediate family members and children under 21 years of age
  • Identifiable and Legal Source of Funds
  • Independent Legal, Advisory Counsel and accounting counsel.
  • Past Five years tax returns (verifiable)
  • Financial + Banking advisory

Source of Funds - Investor

  • Wire Transfers
  • Loans
  • Bank Statements
  • Cash
  • Financial Support
  • Money Manager/Reports
  • Tax Returns: 5 years
  • Gifts
  • Deposit Slips
  • Inheritance
  • Stock or asset sale
  • Savings
  • Business Value
  • Donor source (for child)
  • Retained earnings
  • Historical narrative needed

Source of Funds - Filters & Verifications

  1. Foreign Source Bank
  2. Currency Exchanger
  3. U.S. Receiving Bank
  4. U.S. Reviewing CPA’s
  5. U.S Reviewing Attorneys
  6. Client written Declaration
  7.  State Department Review
  8. U.S. Government – OFAC
  9. U.S. Embassy, Consulate or USCIS
  10. Escrow Agent (as needed)

U.S. Tax Residency Calculation

Yr 1 Yr 2 Yr 3
1/6 x 1/3 x x days
 x days x days

= 183 or > 183 (122)

This chart is used to approximate U.S. Tax residency imposition or qualification. Consult a qualified U.S Tax accountant or attorney.

Let us help you!

If you are interested in the E-2 visa program, please feel free to contact us. We will get back to you with 1 business day. Or if in hurry, just call us now.

Call : (1)954-524-8888

larry@e2lawyer.com Mon – Fri 9AM- 5PM

Download our free book:
HOW TO IMMIGRATE TO THE USA

A Quick Introduction Video