In this video attorney Jacob Sapochnick discusses an important E-2 visa subject: how do you prove source of funds for your E-2 investment?
If your source of investment is a loan: you must prove that your loan is secured by some personal property.
If your source of funds is a gift: you must prove that you have control of that gift and show the source of funds of the person that gave you the gift, for example if the funds came from the sale of the house, the documents of the sale of that house must be provided. If the funds came from savings, then the person would need to provide their savings account statements. If the funds came from someone’s salary, then pay stubs must be provided.
In general, if a person has given you a gift of money, and that is the source of your E-2 investment, that person must prove how they got the money.
Proceeds from Real Estate
If the funds are coming from the proceeds of a real estate sale then you must provide the deed, proof of the bill of sale and the transaction, etc.
If the source of funds is coming from investments such as stock, life insurance, then at least three years of tax returns must be provided, and three years of statements from those institutions.
In this video attorney Jacob Sapochnick discusses how entrepreneurs come to America.
What are the available visa options for an entrepreneur to launch a startup company?
One of the most common ways to launch a company in the United States is through the O-1A visa. This is a great option for entrepreneurs who have already established their reputation in their home country, have run a successful business abroad, and who wish to bring their unique talents and skills to the United States.
To qualify for an O-1A visa, the entrepreneur must demonstrate that they are exceptionally distinguished in their field or industry. This can be demonstrated by way of sustained recognition in the industry on a national or international level, or awards, titles, honorary distinctions, etc. The entrepreneur must also demonstrate that they have achieved a high level of expertise in their industry
The O-1A visa enables the entrepreneur to come to the United States to work for their own company, or for another company.
Another great option is the L-1A visa. If you are a startup founder and you already have a company in your home country, and you want to launch in the United States, you can set up a subsidiary or an affiliate of your startup in your home country and come to the United States as an executive such as a CEO.
Alternatively, you may wish to apply for the E-2 visa as an investor of the startup company that you wish to launch in the United States. To qualify for this visa type, you must be a national of a foreign country that has a qualifying treaty of friendship, commerce, navigation, or similar agreement with the United States.
In addition, the investment must be made in a real, operating commercial enterprise or active entrepreneurial undertaking productive of some service or commodity. Paper organizations, speculative, or idle investments do not qualify as real operating enterprises or active entrepreneurial undertakings.
If you are a citizen of Mexico or Canada, you can apply for a TN visa and be part of the company that you launch in the United States as an advisor or a higher-level position. The position that the entrepreneur will engage in must be a profession that is approved by NAFTA, and the entrepreneur must meet the qualifications for that position.
The E-1 Treaty Trader visa is a good option for entrepreneurs who wish to work in the technology sector. If you have a patent in your home country or have an idea to invest in the technology sector, and you are starting a company in your home county, you can set up a company in the United States as a founder without investing anything, because of the exchange of trade and technology.
National Interest Waiver
Company founders can apply for a green card by applying for a national interest waiver if you are a highly successful entrepreneur, and you can show the government that your level of innovation is at a high level.
Please visit our website for more information about these different options.
In this video attorney Jacob Sapochnick discusses a frequently asked question regarding the E-2 Investor Visa: Are loans or gifts a legitimate source of funds for the E-2 visa?
In order to get an E-2 visa as an investor in the United States, you must demonstrate that you will make a substantial investment in a new business enterprise or an existing business. As part of the application process, you must show the origin of the source of funds for that investment, and the source of those funds must be legitimate. Not all sources of funds will qualify for the E-2 visa. Many of our clients ask whether a gift of funds or a foreign bank loan will qualify as a legitimate source of funding for the E-2 visa.
Are gifts a legitimate source of funds for the E-2 visa?
Yes, provided the investor has possession of the funds, and the funds are irrevocably committed to the investor by the giver of the gift. The person that has given the gift to the investor must provide documentation showing the source of those funds to prove that the funds came from a legitimate source.
In this video, attorneys Jacob Sapochnick and Marie Puertollano discuss recent immigration updates regarding the calculation of unlawful presence for F-1 international students and other topics.
Memorandum Policy Updates for F-1 Students
Per a new policy memorandum released by USCIS, if you are a student who is out of status, you will begin to accrue unlawful presence on August 9th. Students have at least 5 months to file a reinstatement to avoid falling out of status and accruing unlawful presence.
What is happening with DACA?
On August 3, 2018, a federal judge from the United States District Court for the District of Columbia upheld a decision from the lower courts, ordering the complete restoration of the Deferred Action for Childhood Arrivals (DACA) program. This new ruling gives the Trump administration a 20-day deadline to either implement the complete restoration of the DACA program or file an appeal. The Trump administration plans to appeal the decision. In a separate lawsuit filed by Texas and other states, a judge will hear arguments challenging the restoration of the DACA program. A decision in that case has not yet been made. We will notify our readers once a decision has been made.
For the moment, DACA holders may continue to seek a renewal of their DACA benefits, but new requests for DACA will not be accepted.
In this video, attorneys Jacob Sapochnick and Marie Puertollano join a live session on Facebook and Youtube to cover the latest in immigration, E-2 visa changes, TN visa updates, as well as tips, tricks, and advice on how to protect yourself amid this changing immigration climate.
Revised NTA Policy and Delayed implementation:
USCIS has revised its NTA policy expanding the class of individuals who may be referred to ICE and issued a Notice to Appear. Under the revised policy, USCIS may now refer cases “with articulated suspicions of fraud to ICE prior to adjudication.” The implementation of this policy has been placed on hold until operational guidance is implemented by immigration.
What will the new policy do?
The new policy prioritizes the removal of aliens who are removable based on criminal or security grounds, fraud or misrepresentation, and aliens subject to expedited removal.
Prioritizes the removal of individuals who:
(a) Have been convicted of any criminal offense;
(b) Have been charged with any criminal offense that has not been resolved;
(c) Have committed acts that constitute a chargeable criminal offense;
(d) Have engaged in fraud or willful misrepresentation in connection with any official matter or application before a governmental agency;
(e) Have abused any program related to receipt of public benefits;
(f) Are subject to a final order of removal, but have not departed; or
(g) In the judgment of an immigration officer, otherwise pose a risk to public safety or national security
The E-2 treaty investor visa is a non-immigrant visa that allows foreign entrepreneurs from treaty nations to enter the United States and carry out investment and trade activities, for a specified period of two years subject to renewal. Investment activities include the creation of a new business. Foreign nationals must invest a substantial amount of capital in a new or existing business. The investment must be significantly proportional to the total investment, that is, usually more than half the total value of the enterprise or, if a new business, an amount normally considered necessary to establish the business.
Who can get it?
Only foreign nationals from treaty nations may apply for the E-2 visa. To find out if your country qualifies, click here.
Level of Investment
Therefore, the level of investment must be such that it is sufficient to justify presence of the treaty national in the United States. The investment must be in an operating business e.g. a speculative investment in undeveloped land would not qualify, whereas an investment in a real estate development project probably would. Also, a substantial part of the investment must have been made prior to applying for E-2 status.
The investment must be substantial, a standard which depends on the nature of the enterprise. Generally, investment funds or assets must be committed and irrevocable. The funds or assets must be deemed sufficient to ensure the success of operations.
The investment must be real and active and not passive; this means that a bank account, undeveloped land or stocks, or a not-for-profit organization will not be sufficient to be considered.
The enterprise must be a real, operating commercial enterprise or active entrepreneurial undertaking productive of some service or commodity. Paper organizations, speculative, or idle investments do not qualify as real operating enterprises or active entrepreneurial undertakings. Funds in a bank account are not considered at risk since they have not been committed.
In this video attorney Jacob Sapochnick discusses the status of the E-2 visa program for the country of Israel, as well as different E visa options for Israeli entrepreneurs. For a free first time consultation please contact our office.
Our staff members are fluent in Spanish, Hebrew, Russian, Mandarin, and French.
It is our pleasure to introduce you to our talented senior paralegal Linda Parrish. Linda Parrish is the senior paralegal for immigration and corporate matters at our law office. Altogether, she has more than 20 years experience in the legal field and brings an amazing amount of knowledge and expertise to our firm. She focuses on company formations, E2 and L1 visas as well as PERM Green Card cases.
Linda has been working with the Law Offices of Jacob J. Sapochnick since 2005. Linda has extensive knowledge of all aspects of immigration law, though her specialty lies in assisting investors, executives, and corporate clients to meet their immigration needs. She is also our resident Notary Public. Linda Parrish is an asset to our team for her expertise, kindness, and for the invaluable contributions she has made to our firm.
Mrs. Parrish is married, has four adult children and several grandchildren. In her spare time, she enjoys quilting and crocheting.
In this video, Attorney Jacob J. Sapochnick Esq. discusses one of your frequently asked questions about the E-2 visa program: Is there a minimum investment amount? How can I determine how much money to invest for the E-2 visa?
For more information please keep watching.
The answer is that there is no set standard requirement in the law stating a standard minimum amount of money required to be invested in order to qualify for an E-2 visa. Although there is no minimum investment amount required for E-2 visa investment purposes, as a general rule the investment must be significantly proportional to the amount of the total investment. This means that generally the investment amount must be half the total value of the enterprise, or for new businesses, an amount normally considered necessary to start the business. It is true that some applicants have been approved for the E-2 visa having made investments of less than $100,000, but the appropriate amount you must invest will depend on various factors including: the type of business you will invest in, the location, business plan, whether you plan on opening a new business or investment in an existing business, etc. In order for your application to be convincing, realistically the investment amount should approach $100,000, to increase your chances of getting your E-2 visa approved, but you must take into account that the investment amount will depend upon many different factors.
In this video, Attorney Jacob J. Sapochnick Esq. discusses one of your frequently asked questions: Is there a minimum investment amount required to apply for the E-2 Treaty Investor visa? To read more about the E-2 visa click here. To read about other visa types for start-up companies and entrepreneurs please click here.
Although, there is no minimum investment amount required for the E-2 Treaty Trader Visa, the investment amount must be reasonable, to demonstrate that the business is not marginal and that it is the funds will be “at risk.”
As a general rule the investment must be significantly proportional to the total investment, that is, usually more than half the total value of the enterprise or, for new businesses, an amount normally considered necessary to establish the business.
Consider the following when coming up with the appropriate investment amount:
What is the type of business?
Where is the location?
How much money is typically required to run this type of business?
How many employees will you need to hire?
Consider cost of assets, equipment, operating, and other start up expenses
Typically, anything less than $50,000 would not be sufficient to convince the consulate or immigration service that your funds are committed and “at risk.” We would be happy to discuss your options. For a free first time consultation please contact our office.