This article examines if a foreign investor or entrepreneur can open a liquor store in the United States and use it to obtain an E2 visa. We discuss the requirements of the E2 visa and how a liquor store business fits in with each requirement.
But first let’s look at a quick overview of what is an E2 visa.
What is E2 visa?
E2 visa is a nonimmigrant visa for individuals from treaty countries who make a substantial investment in a US business. To qualify for E2 visa, you can start a new business, purchase an existing business or invest in a franchise in the United States.
Investors can also bring essential employees and other managerial or supervisory employees of the same nationality to assist them in operating the business.
To qualify for E2 visa you must meet the following requirements:
- Investor is a citizen of an E2 treaty country
- Investor has invested or is in the process of investing in a US business
- The business is real and active
- The investment is substantial
- Business is not marginal
- The investor is in a position to develop and direct the business
- The investor intends to depart the United States when the E2 status ends
More on the requirements, eligibility and benefits of the E2 visa can be found on our E-2 visa page. 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.
Can I open a liquor store with E2 visa?
Overall, the answer to the question Can I open a liquor store with E2 visa? is a resounding yes. Liquor stores are suitable businesses to invest in for an E2 visa.
The business is active and creates employment for US workers, while generating tax revenue for the US and local government. Liquor stores can also be highly profitable leading to a great return on investment and a high standard of living for the owner and their family.
Now let’s examine how the E2 visa requirements apply to a liquor store business. We will not cover nationality restrictions and mandatory departure upon visa termination as these apply to all E2 visa applications.
Liquor store: Real and active E2 business
Now let’s examine the third requirement, the business is real and active. To be active, a business must produce and sell goods or services. Active businesses include a restaurant, a bar, a gym, a factory and others.
Unlike an operating business, investments in land, stocks, and bonds are passive holdings that rely on asset appreciation or passive income generation without active management. Passive businesses do not qualify for E2 visa.
The liquor store as a business model is active because it relies on the sale of products (beer, liquor, soft drinks and others) to generate revenue. It also requires active involvement from management to purchase and manage inventory, maintain the premises, market the store and make the final sale to retail customers.
E2 visa and liquor store investment
The regulation does not specify a minimum investment amount for an E2 visa. However, while there is no set dollar figure the E2 visa requires a substantial investment in the E2 business.
Instead of a set minimum, the E2 visa considers the investment in relation to the business. Each case is evaluated to determine if the investment is substantial enough given the nature of the business.
Consular officers use a proportionality test to determine if an investment is considered substantial for an E2 visa. This test compares the amount you actually invested in the business with the overall value of the business as follows:
- Existing Business: The value of an existing business is typically its purchase price.
- New Business: The value of a new business is generally considered the total cost to get it up and running.
While there is no set minimum, in practice, investments of $100,000 or more are generally seen as substantial. However, lower amounts can also be acceptable depending on the specific circumstances of your business.
According to eFinancialModels: How Much Does It Cost to Start a Liquor Store: Leveraging Tools for Business Growth, the average cost of starting a business in the US is between $50,000 and $100,000.
However, this is an average for the entire country and the cost to open a liquor store can vary substantially between locations. This means that to open a liquor store in the United States and get an E2 visa, you must invest between at least $50,000 to $100,000 if the location is an average US town. But if you choose a city with a substantially higher cost of living than the average, like New York or Miami, you can expect to pay several times that cost to open a liquor store.
A good way to establish the value of a liquor store in your desired area is to search a business broker portal such as BizBuySell or Transworld.
More than marginal E2 business
If you want to get an E2 visa for a liquor store, then your liquor store must be more than marginal. In other words, the business needs to generate enough income to support more than just the investor and their family.
This is determined by the business’ present or future capacity to generate high cash flow, hire US employees and make a significant contribution to the US economy within five years of starting the business.
In the case of liquor stores it is easy to show the business is more than marginal. Liquor stores can be highly profitable. For example, liquor stores listed for sale in Florida generate between $400,000 and $600,000 in cash flow to the owner.
Now that we have determined that an investor can get an E2 with a liquor store, let’s examine how to open a liquor store and get an E2 visa. Because regulations vary greatly by city and state, let’s take opening a liquor store for an E2 in Miami, Florida as a case study.
How to open a liquor store for E2 visa
Find a suitable location
The first step is to find a suitable location in the city and negotiate a lease with the landlord. It is very important to confirm that the location is properly zoned for a liquor store before leasing the premises. You can do that on the City of Miami website.
Obtain a Certificate of Use & Business Tax Receipt
You need to obtain the certificate of use (CU) in order for the liquor store to operate at a particular location. The City of Miami requires this to ensure that the business is operating legally, safely, and within zoning regulations.
To obtain the CU and business tax receipt you must collect a number of documents for the business and the property, submit an application, pay the fees and pass inspections for safety, zoning and environmental compliance. You can find the process to apply for CU and business tax receipt on the City of Miami website.
Obtain a Florida liquor license
There are different liquor licenses in the state of Florida. The Florida Department of Business and Professional Regulation (DBPR) issues liquor licenses.
Some liquor licenses restrict sales to off-premise consumption only, while others permit on-site consumption of wine and beer, or even all three: wine, beer, and spirits.
Most licenses require the payment of a fee, an application, fingerprinting for owners/mangers, and other corporate documents. You can find more information on the types of licenses and how to obtain them on the DBPR website.
Obtaining the liquor license is the last step in the process. After you obtain the liquor license, the liquor store business can start serving customers.
You can submit the E2 visa application to the relevant US consulate once you have applied for the liquor license. By the time the US Consulate schedules the interview, you will likely receive the final answer from DBPR and can bring the approved license to the E2 visa interview.
While you can submit the E2 visa application after starting the liquor license process, consult with an immigration lawyer to ensure the specific timing aligns with your situation.
Malescu Law can assist
To be successful in opening a liquor store with an E2 visa we recommend that you contact a licensed immigration lawyer and a business attorney licensed in the state in which you wish to open the liquor store.
Our licensed business and immigration lawyers are available to help you pursue your dream of a highly profitable US business. Contact us now or schedule a consultation.
We serve individuals and companies throughout the United States across all 50 states, the District of Columbia and Puerto Rico.
Legal Notice: The information provided in this article constitutes the author’s conclusions and opinions developed in the author’s capacity as a Board Certified attorney, licensed in the State of Florida. The author and this website expressly prohibit the use of this material, including any of our audio, video, chat, images, text or other information provided to train any artificial intelligence (AI) models or to be used or transmitted by such AI models in any form without the prior written permission of the author.
Malescu Law P.A. – Business & Immigration Lawyers
