Pros and Cons Between New and Existing Business for the E2 Visa

In today’s video I will explain the main aspects between buying an existing business and starting a new one for an E2 Visa application.

Every situation is unique, but in general terms, each option has both pros and cons to be considered. Regarding existing business, it's important to see if the company’s tax returns and payroll records shown enough profitability and number of employees for a strong E2 visa application. That would be one of the first aspects to consider.

Naturally existing business has some characteristics that could be positive like having an operation in place, existing employees, maybe a manager, long-term lease agreement, no buildouts to be done, customer base, etc. The major downside is that a good and profitable existing business will probably require much higher investment than the same business starting from zero.

That’s why is very important to be aware and investigate even deeper business for sale that sound too good to be true. In other words, with a price point even lower than the investment required to start a new operation. In many of these cases, the owner is just trying to mitigate current or future the losses, and liabilities.

Business with weak financial performance don't’ make strong E2 visa cases, and that’s understandable since the immigration officer looks for financial potential and jobs creation when reviewing the application. It tends to be harder to show how the investor will flip the business to be successful when it’s not doing so well and a local entrepreneur already failed.

That said, existing business can be a great option for many E2 visa applicants, especially if they find a concept related to their professional experience, in a good market, with growth potential, good profit, some employees, clear records and within their investment range.

Startup business also have some other positive characteristics that suits many candidates, like being able to choose the location, having different concept options, no bad brand reputation, training a team with no prior bad habits; but first and foremost, the necessary investment being in many cases much lower than buying an identical exiting operation, is by far one of the most compelling aspects.

And regarding the E2 visa, as long the startup business shows a good financial and job creation potential, should be ok to be granted the visa if all the other requirements are met.

In both cases, like I always recommend, it’s very important to count with a good immigration attorney to help understand if the options are eligible for a strong e2 visa case. Despite if it’s a new or existing business, always seek help from professionals and investigate to make sure the best options are being chosen and the chances of overall success are high.