Sofronija

I am looking to buy a business in the US. My initial plan was to go out on a six month B1 visa to look for the business and start the buying process. Rather than make the seller wait the three months or so that the London Embassy takes to process an E2 visa before completing a contract, I thought I'd go for a change of status in country so that the sale could go through promptly and then go back to London to get the E2 in my own time.

However, in the last day or so I have read that the London Embassy doesn't like to issue B1 visas for people looking to buy a business. I am surprised at this - you can't change status if you've arrived on the Visa Waiver Programme but what seller is going to patiently wait three months while a buyer sorts out a visa (which is not guaranteed) plus as a buyer I don't have the money to kick my heels for three months not earning anything while awaiting the Embassy to process my visa application?

I read about London not giving out B1 visas to business purchasers on a visa attorney's website. I have not read about it anywhere else (including other immigration lawyers' sites). I understand that a visa attorney has an interest in making people think that they need his assistance and that they can't achieve what they want without his expert knowledge but it's also absurd enough that it might be true and I'd rather not find out the hard way! This attorney recommends the Belfast Consulate as being more sympathetic to business purchasers.

Is there anybody out there who has been through this process - particularly going from B1 to E2? Is what the lawyer says true? Any advice on how to proceed would be very welcome. I am also confused as to what you are legally allowed to do - you are allowed to purchase a business on either VWP or B1 but not allowed to direct it until you have E2 - so what are you supposed to do with your newly acquired business until the visa is sorted out - cross your fingers and hope it doesn't go to the wall until you get your visa? Again, I'd love to hear from anybody who has been through this.
Thanks

Noorah101

I'm no expert, but from some of the threads I've read on here, it seems people get a clause written into the purchase of the business... something like "dependent upon visa approval" or something like that.

Rene

scrubbedexpat099

Yes

And who would want do a COS and get landlocked anyway?

Steve_

It's not a good idea because you then have to assume you can get everything worked out in six months. I know it says two months on the USCIS website for processing time but going to E has got to be the most complex change of non-immigrant status there is, I wouldn't want to try it myself, sounds like wishful thinking.

Bitzi

Hello
I got my E2 in 2008 and completely understand your questions and concerns.
I came here on a 3 month visa waiver and found a business. You are absolutely correct, what right-minded seller agrees to sell to someone from a different country, and has to wait for up to a year (that's how long it took me to get my whole application processed) without any guarantee the deal will go through. Before I answer that question, you must get a contingency put into the contract specifically relating that the sale is contingent upon issuance of E2 visa.

I would recommend hiring not only an attorney for first time E2 applications (you can do the renewal yourself, I did), but also a business broker. The broker will walk you through the contract and outline all your contingencies. Landlord approval is also another huge hurdle to overcome and must be a contingency written into the contract. Broker will also set you up with Escrow Attorney.

With hindsight, the sellers of the business I bought were really desperate to sell and get out of their lease. I found out afterwards that they had had previous offers but once the intended buyers did a bit more investigating and due diligence they ran a mile. It's tricky. I found loads of businesses I wanted to buy but the majority of sellers were not willing to accept and commit to my offer, because of the long wait and uncertainty that it would be a successful sale.

It takes a special kind of insanity to walk the E2 path. It's only temporary, it's expensive, there is no route to permanent residency, it's a nightmare if you have children (they lose their status when they come of age). Really question why you want to live and work in the US....

Good luck with your search. You can search online for businesses for sale and you can do a lot of homework before you come over. Get signed up with a broker, ideally one who has E2 experience and get them to line you up several pre-qualified businesses.

That's my suggestion

scrubbedexpat099

It is certainly true that the majority of E2's you see on here involve Florida which economically is in a shitty condition and buyers are few and far between.

So waiting on a visa is not so much the biggie it might be otherwise.

411

I was going to go for an E2. I took a look at most businesses for sale and most of the cost is down to goodwill so I have steered away from buying a business because I think its practically the same trouble to start one up. To that end I purchased a business premises with no ongoing business and hope to present a start up business plan. In my opinion most of the risk is eliminated buying a property because if you get denied you can either lease it or put it back on the market. I think there is advantage of getting real estate with the business while prices are still low.

Strafford

I came to the US in 2004 on an E2. I visited the State that I wanted to purchase a business in and arranged a trip over to view the businesses I had looked at online and was interested in through a business broker. I gave him the dates I was visiting and he had all the viewings lined up for the first week of my visit.

When I made an offer on the business I wanted it was written into the contract that the purchase was contingent upon me obtaining an E2 Small Business Investor Visa.

It took several months and there was a point where the owner was about to put the property back up for sale but the Visa went through and I moved to the US.

Whilst waiting for the Visa to come through I just worked for a temp agency so I would be able to leave as soon as I received the Visa.

Sofronija

Thanks Bitzi - that's really helpful. Could you give me an idea of how much an immigration attorney might cost so I can budget for that?

I was planning on doing the whole thing myself - what could an attorney do for specifically that's worth the money?

I'm actually planning on buying a business in California - if anybody can recommend any business brokers or immigration attorneys who have experience of foreign buyers and the London embassy respectively I would be hugely grateful. A Google search didn't seem to uncover any brokers touting any international experience..

scrubbedexpat099

www.us-visalaw.co.uk

I do not understand the Business Broker requirement, the simplest Google will come up with loads.

Strafford

I just used a Broker as it did not cost me anything and he had all the appointments set up for my trip over.

Bitzi

Hi Sofronija

I am in California as well (Santa Cruz). I highly recommend a website called bizben.com. It lists all the CA businesses for sale by type and location. Some are for sale via brokers and some are by owners. You probably want to start by pinpointing your location. CA is a big place and the people, lifestyle and climate vary considerably from city to city.

When you find a business you want to put an offer on, you have more credibility if you are represented by a broker, especially if you are a foreigner. It will give the seller more confidence. There are many legal issues and especially in CA where you can get sued for sneezing in the wrong direction, you want to make sure your interests are protected.

Why use an attorney? If you know what you are doing and know to present your application package to the embassy, if you know how to set up your corporation, business license, bulk sale transfers etc. If you know how to set up with the State Board of Equalization, Employee Development Department and get yourself a Federal Employer number, then you probably won't need an attorney. There are many legal requirements necessary in not only just buying a business, but also in setting it up. Your application to the embassy will need to include the majority of the above plus more before being accepted. And your application will be rejected if you don't set up everything that is required.

I did everything from the UK. I used a company that helped me do it all and it cost me about 4K GBP. I can't recommend them because they went bust. You can do it from the UK or from the US. Just google "E2 Immigration Attorney California" and you will be inundated with choices. I think the average price is about $6K, some are less.

My recommendation would be to set yourself up with an attorney first. Establish that relationship so that when you find a business you can start the ball rolling immediately. No seller will take you seriously if you haven't understood the E2 process. You need to be able to make them feel comfortable and confident the deal will go through.

Happy to help.

S Folinsky

Out of idle curiosity -- did you consult with a lawyer or two who does these type of applications?

You are talking about investing a fairly sizable piece of change here. The consultation fee might be money well spent.

These applications tend to be quite fact specific. Also, what may have worked even 18 months ago might be problematical today [or vice versa].

S Folinsky

+1

J Craig Fong has been recommended by others on this forum. [I used to share office space with J and his partner Eileen Chun -- they are wonderful people besides being good lawyers].

Bitzi

It's not a requirement but it makes things a lot simpler and cuts out a lot of crap and time wasting. As Strafford said, it's free and they do a lot of the searching and groundwork for you.

Often when they take on a new listing, they will make sure the seller is ready to sell. The seller knows they have to get their tax returns in order and be ready to produce them. The lease and reassignment paperwork needs to be ready etc. There is a lot the broker will take care of that the immigration attorney won't. They normally set up the final escrow attorney (different to the immigration attorney), who sorts out all the legal transfer titles of business ownership. That cost an additional $3K.

Whilst I am now talking about budgets, there are few things to remember.
You must budget for additional fees in setting up your business once you have received your E2 visa and the sale has gone through. A business license varies but these are all average costs. Business license $500. Health permit if running a food business $500. Depending on where you are located, there might be additional city business licenses $500. DBA recording $500. Then of course the business operating expenses. I bought a cafe and took over at the start of summer. Within the first month I had to pay out nearly $20K in just payroll and an additional $10K in operating inventory. As I had no credit history the State Board of Equalization required a $7K deposit to be held in a CD account for 4 years which I could not touch!. ATT required a $1K deposit as did PGE (these are the phone and electric companies). I had to do this twice for my business and my home! You have to pay Workers Compensation Insurance, insurance on the business

Of course this might not be the norm or everyone's experiences, but these were mine.

Most importantly, get health insurance immediately (there is normally a 3 month wait for immigrants). An average plan including dental depending on your age is about $400 a month. My husband had a serious injury and did not have insurance. The medical bills were about $600K for 3 days in Intensive care, 5 days in a regular ward and two surgeries. We had to spend a lot of money up front to hire an attorney to fight our case and eventually after about 3 years of extreme stress, we accepted a settlement which saved us from bankruptcy.

It is very expensive living in CA.