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For the E-2 Visa, can the source of funds be from other investors?

Gainesville, FL |

I want to cofound a tech company in the US with an American (I'm Canadian). One option for me is the E-2 visa. I've read that I must invest a substantial amount of funds. Can this substantial amount come from friends and family? Can it come from angel investors (in Canada or the US) intending to invest in my company?

Attorney Answers 4

Posted

When it comes to the source of the E-2 investment funds, they can indeed come from a gift or inheritance, as long as the funds were lawfully acquired by the E-2 investor. Some types of loans would also qualify as a legitimate source, but not all. The E-2 investor must have majority ownership and control of the entity. A 50/50 ownership situation is possible, but the E-2 investor must prove it controls the entity. Best of luck to you.

Please note, the above answer is for general informational purposes only. We are a full-service immigration and criminal defense law firm, representing clients in all 50 states and worldwide. Kristy Figueroa-Contreras, Esq., kristy@negri-torres.com, NEGRI, TORRES & FIGUEROA-CONTRERAS, PA, The Minorca, Suite 214, 2030 South Douglas Road, Miami, FL 33134, Tel. (305) 639-8599. Hablamos español. Falamos português.

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Asker

Posted

Thank you. The "at least 50% ownership" by the investor may not be possible since the company will likely need much more funding after some time (in exchange for equity). This 50% ownership criteria might limit the fundability/growth of the company if the company seeks funding from American investors later. Perhaps, the american investors can channel the investment through the initial E2 investor in order for the E-2 visas to stay valid. Hmmmm.

Kristin D Figueroa-Contreras

Kristin D Figueroa-Contreras

Posted

I understand, but this would not work. The E-2 investor must be the one making the investment and must own a majority interest in the entity, the funds can not come from a loan secured by the E-2 business' assets. A 50/50 ownership situation could work, but only if there are two (not more) owners and each owner has full management rights and responsibilities and equal veto power.

Posted

These kinds of technical questions should be handled by an immigration attorney who is working on the E2 visa application for you.

NYC EXPERIENCED IMMIGRATION ATTORNEYS www.myattorneyusa.com; email: info@myattorneyusa.com; Phone: (866) 456-­8654; Fax: 212-964-0440; Cell: 212-202-0325. The information contained in this answer is provided for informational purposes only, and should not be construed as legal advice on any subject matter.

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Posted

Hello Sir or Madam. If your E-2 application is based upon you being the principal investor (as opposed you being an employee and someone else being the principal E-2 investor), then you have to make the investment. It is best to hire an experiened immigration attorney to assist you. Regards.

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Asker

Posted

Thank you for the answer. To clarify, I would be an employee.

Shahzad Ahmed

Shahzad Ahmed

Posted

You are welcome. Okay, so there is another principal investor from your nationality who will apply for an E-2 and your E-2 will be as an employee. Do I understand this all correctly in your case?

Asker

Posted

I probably misunderstood. My E-2 will be as an investor, but in the end, I want to be an employee of the company that is created. I was not aware that the E-2 application can be based upon me being an employee and someone else being the investor. Is that correct?That may be a better option for me which I will look into.

Shahzad Ahmed

Shahzad Ahmed

Posted

That is correct. The principal investor must make the investment and must "develop and direct" the enterprise. So if you are the principal investor, then you must make the investment. Or if there is another principal E-2 investor, then you can be a qualifying employee. As such an employee, you are not required to invest nor develop and direct. I recommend obtaining a full formal consultation on your case. Regards.

Posted

You must be the principal investor.

Please click the link at the very bottom for additional information.

---------
Carl Shusterman, Esq.
Former INS Trial Attorney (1976-82)
Board Certified Immigration Attorney (1986 - Present)
Schedule a Legal Consultation - Telephonic, Skype or In-Person
https://shusterman.com/intake-secure.html
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(213) 394-4554 x0
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www.inmigracion-abogado.com (Spanish)

(213) 394-4554 x0 Mr. Shusterman is a former INS Trial Attorney (1976-82) with over 35 years of immigration experience. His response to your question is general in nature, as not all the facts are known to him. You should retain an attorney experienced in immigration law to review all the facts in your case in order to receive advice specific to your case. Mr. Shusterman's statement above does not create an attorney/client relationship.

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