Last Updated on March 10, 2025 by Anda Malescu
The article discusses everything you need to know about buying a business for E2 visa. It is important to note that buying a business is just one of the several viable options you have for obtaining an E2 visa. But before discussing this topic further, let us explore important aspects about the E2 visa.
What is E2 Visa?
The E2 Visa is a nonimmigrant visa for individuals from treaty countries who make a substantial investment in a commercial enterprise in the United States. The E2 Investor Visa allows the investor to temporary live and work in the United States, together with their spouses and children, to develop the business.
To qualify for an E2 Visa, the investor must meet the following minimum requirements:
Visit E2 visa page to find out more about the requirements, eligibility and benefits of this visa. For Canadian citizens, visit E2 visa for Canadians to learn more. If applying within the US, visit Applying for E2 visa while in US.
For information about E2 visa for family members, visit frequently asked questions about E2 visa spouse children and family members.
Investment options: Buy a Business for E2 visa
Generally, there are three options for an investor to invest a substantial amount of capital in a business the United States for E2 visa:
Buying A Business for E2 Visa
Here we will examine the option to buy a business for E2 visa in more detail.
Select the type of business
The first step is for the investor to decide what business they want to buy. In our experience, the most successful E2 visa purchases of business are when the investor buys a business they are familiar with. For example, a type of business the investor developed in the home country or a type of business the investor has experience as an employee.
If the investor is not familiar with any type of business or cannot invest in a type of business that they are familiar with, then the second-best option is to find a business that is simple to run and has an established market for its products or services. Such a business can be a restaurant, car wash, a gas station or a grocery store.
Select specific businesses to buy
Once the investor has decided on the type of business they want to purchase, it is now time to select potential acquisition targets. For this part of the process, the investor can use the services of a business broker.
Depending on the state, the business broker might have to be licensed. For example, Florida does not have a specific business broker license, but prospective business brokers must first obtain a Florida real estate license because the sale of a business is considered “real estate.” The targeted business must be operational and employing US workers.
Negotiate the terms and purchase price
If the investor has found a suitable business to buy, then the investor should contact the seller and start negotiating the price and the rest of the terms of the transaction. Important points to negotiate are any training or involvement on the part of the owner or manager after the purchase, ensuring disclosure of any hidden liabilities and any possible non-compete or non-solicitation clauses.
Conduct due diligence
After negotiations are over and investor signed a purchase-sale agreement the due diligence process starts. There are two types of due diligence that needs to be done when buying an existing US business:
- legal due diligence, and
- financial due diligence
The legal due diligence must be done by a lawyer and usually involves checking for any outstanding litigation, any non-disclosed liens or liabilities and the title of any properties if real estate is part of the deal.
Financial due diligence involves checking if the past financial performance of the acquired business was not materially misrepresented to the buyer. It involves examining financial statements, tax returns, back accounts and payroll records. An accountant or other financial professional can perform the financial due diligence.
Our team includes a Chartered Financial Analyst (CFA), one of the most respected designations in finance, with an extensive business valuation expertise, including E2 visa business valuations. This allows us to provide expert financial analysis directly to immigration officers, addressing any potential concerns about the business or investment value upfront and minimizing the risk of questions and requests for further evidence.
If the buyer finds irregularities during due diligence, they can call off the deal or renegotiate it.
Closing
As part of the closing, the buyer transfers the whole amount necessary for the purchase of the business to the escrow account. Then the investor’s immigration attorney finalizes the E2 visa application and sends it either to USCIS or the US consulate in the investor’s country of residence.
If US Consulate approved the E2 visa, the investor will notify the escrow agent to release the funds to the seller. The E2 investor then takes possession of the business, either immediately if applying for change of status from within the United States or upon arrival to the US if applying for a visa through a US consulate.
Pros and cons
Buying a business for E2 visa has certain advantages as compared to starting a new business or investing in an existing business as a partner.
The most important advantage of buying a business for E2 visa is that the closing can be contingent upon visa approval. This is unlike the other options which require the investor to make an upfront investment before applying for E2 visa. In turn, it decreases the risk and minimizes losses for the investor if the consulate does not approve the E2 visa.
Another advantage of buying a business for E2 visa is that the investor is not starting from zero and many businesses for sale already have a positive cash flow.
The disadvantages include the higher upfront cost to acquire a running business and possible hidden problems with the business.
Malescu Law can assist
Our immigration lawyers have a proven track record of successfully securing E2 visas for investors buying an existing business for E2 visa.
For more information on the E2 visa or to consult with our best E2 visa lawyers in USA about buying a business for E2 visa contact us or book a consultation.
We serve companies and individuals across all 50 states, the District of Columbia and Puerto Rico.
Malescu Law P.A. – Business & Immigration Lawyers
