Mariaslk

Would buying a small existing business for around 50,000 qualify for the E2 if I employed 1 or 2 employees.

Ray

Unlikely through the London consulate .. but it can depend on
the business plan..the normal unofficial recommendation minimum is
around $150k-$200k

Butch Cassidy

Would a house with 900 acres? If I was to farm it or set up a horse boarding facility?

Cost of house and land is 500K

Ray

Why would you want an E-2 if you spending that amount
thats not a business thats a home ....

Butch Cassidy

Because
1) I need to be able to live and work there
2) It would be a business AND a home yes. But if I just wanted a home I could spend a little less

Ray

Well the home side ..would have to be removed from the equation ...

And you would need a very good business plan if it was a start up
with no employees ...
I presume you know the pitfulls of the E-2..
have you considered a EB-5 instead and at least get a green card..
if your spending that much ..

read the faq here about E-2
http://www.investorvisausa.com/index.html

Butch Cassidy

Thanks for that Ray,
I was aware of some of the pitfalls to the E-2, EB-5 however would require a much bigger investment (than the 6-700000 total I was looking at) wouldnt it? Especially were I'm looking (around Denver\Colorado Springs)?

Ray

Remember there are two types of EB-5
the one where you invest a million plus and employ 10 people

And the other one where you invest a minium of $500k in a
Regional Centers... say you liked to invest in beef/milk
http://www.sdeb5.com/ then you invest you money there
you get a green card .. you buy your house and get any job you like ...
does not have be anywhere near there

Worth researching ....

Folinskyinla

Ray:

True -- there are two levels of investment: $1,000,000 and $500,000. This is dependent upon the geographical location of the investment -- the lower amount being for high-unemployment or rural areas.

Both levels require the creation of 10 new jobs -- unless, investment is in a "distressed" business [which then requires saving 10 existing jobs] or by investing in a "regional center" which will indirectly creates the 10 new jobs.

As written, your post is a tad confusing and perhaps a tad wrong.

Butch Cassidy

OK, so now I am confused. Does my investment have to create 10 new jobs regardless of where I invest?

Folinskyinla

Hi:

The essence of the EB-5 visa is for job creation. There are exceptions. The law is somewhat complicated -- Ray is actually pretty good in keeping up on these things. I sometimes get the feeling that his approach is from seeing what happens and extrapolating from that. You might call it "reverse engineering." As a lawyer, I start out with the law, and go from there. In the best of possible worlds -- we should arrive at the same results -- but that is not always so.

[BTW, I see some lawyers doing such "reverse engineering" without starting from the basics. I'm dealing with something in a different area where this has resulted in the existence of "legal legend" of 22 years standing]

Ray

Thats why I add the rider about doing more research yourself
it a very compicated procedure for a few lines

An Interesting quote

"I would also like to point out that a non-immigrant (E2) visa is not a good option for someone who intends to reside permanently in the United States. If the investor retires or sells their investment, his or her visa status lapses and he or she must leave the US. Only single dependent children under 21 are eligible for visas to accompany their investor parent, and when these children turn 21 they lose their status as a dependent and their visa. The more secure option for those that have the necessary capital is the permanent resident (green card EB5) investor visa. In this case the required investment is one million dollars, or under certain circumstances $500,000." John Caulfield, Consul General, US Embassy London.

I will add there are plenty of sharks out there willing to assist
people wanting a cut of the pie ..with the EB-5

Folinskyinla

Hi:

I don't disagree. The appropriate visa depends upon what the individual WANTS to do combined with abilities and other facts. The EB-5 and the E-2 visas are both "investor" visas, but they are quite different.

Like any investment, one should do their due diligence and make an informed decision.

I recall one case in my old firm where the investor was the wife of a well-to-do business man in a country with strict currency controls. The couple had no intention of obtaining LPR status. The E-2 allowed the lawful transfer of a large sum of money to the US which was invested in an existing business which was a cash cow. The income met the marginality test because they did not need any of it to live on. The wife "directed" the business simply by reviewing the work of the managers and making sure the place continued to make money. This is an example of an E-2 fitting the bill perfectly.

scrubbedexpat099

You will not get 900 acres for that amount of money anyway.

Move the Decimal point along.

Ray

And I aint cutting all that grass ....