Start a Business in America: 4 Visas You Need to Know

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Are you interested in starting a business in the United States? Here’s the catch: the U.S. does not have a dedicated “founder visa” for entrepreneurs. There is no single visa that simply lets you move to America, launch a company, and start building. But that does not mean entrepreneurs are out of options.

Depending on your country of nationality and long-term goals, there are four key visa pathways that can allow founders and business owners to live and work in the United States while bringing their families with them. These are the E-2, L-1A, O-1A, and EB-5 visas.

First, it’s important to ask these four questions to help determine which visa options may be available to you:

  1. Are you a citizen of an E-2 treaty country? If so, the E-2 treaty investor visa may be an option.
  2. Do you own or operate an established business outside the United States? The L-1 visa may allow you to expand that business into the U.S. to work as a company executive.
  3. Do you have a record of extraordinary ability or significant achievements in your field? These achievements may qualify you for the O-1A visa.
  4. Can you invest $800,000 or $1,050,000 in a U.S. business and meet the job-creation requirements? In this case, the EB-5 immigrant investor program could be the easiest way to immigrate to the U.S.

1. The E-2 Treaty Investor Visa

If you are a citizen of a treaty country (such as Canada, Mexico, Israel, the UK, etc), then you may be eligible for the E-2 treaty investor visa program. (Check whether your country qualifies for the E-2 visa by viewing the U.S. Department of State’s list of treaty countries here).

What is the E-2 Visa?

The E-2 treaty investor visa allows citizens of qualifying treaty countries to come to the United States to develop and operate a U.S. business in which they have made a substantial investment.

There is no fixed minimum investment amount required. Instead, the investment must be substantial compared to the type and cost of the business. This may be satisfied with a $50,000 to $100,000 investment depending on the nature of your business.

The investor must be prepared to demonstrate the lawful source of the funds used for investment in the business. For example, if the source of the investment amount is income earned from salary, the investor must show proof of the income accumulation from salary (bank account statements, pay slips etc.) as well as relevant income tax returns during the period the income was earned. If the investment was earned through the sale of property, the investor must document the source of funds for the initial purchase of the property, and money earned from the eventual sale.

You Must Play an Active Role in Your Business

The E-2 visa is designed for investors who will actively develop and direct their U.S. business. In other words, you cannot simply make a passive investment and have no involvement in the company. You must be coming to the United States to oversee the business, make important decisions, and play an active role in its operations and growth.

How long is the E-2 visa valid?

The length of the visa depends on the investor’s country of nationality and the U.S. visa reciprocity schedule. For example, E-2 visas for Mexican nationals are issued for up to four years, while E-2 visas for Israeli nationals are issued for only 2 years.

Regardless of the length of the visa, each time an E-2 investor enters the United States, they are generally admitted for up to two years. E-2 status can also be extended in two-year increments as long as the investor and business continue to qualify.

Can your family come with you?

Yes. Your spouse and unmarried children under 21 can receive E-2 dependent status and live with you in the United States.

Can your spouse work?

Yes. E-2 spouses are generally authorized to work in the United States based on their “E2S” status and are not limited to working for the E-2 business. They can work for any U.S. employer.

Can your children attend school?

Children in E-2 dependent status can attend school in the United States, but they are generally not authorized to work based solely on their E-2 dependent status.

Can you apply for a green card?

The E-2 visa itself does not automatically lead to permanent residence. The person must qualify under a separate immigrant category, such as EB-1A, EB-2 National Interest Waiver, EB-5 investor, employment sponsorship, or a family-based petition.

Common Reasons for Denials

One common reason for an E-2 visa denial is that the investment funds are not truly “at risk.” Simply having money in a bank account or planning to invest it later is generally not enough.

The funds must be committed to the business and subject to potential financial loss if the business fails.

Another common issue is the source of the investment funds. The investor must be able to show that the money came from a lawful and legitimate source. Funds connected to unlawful activity, or funds that cannot be properly documented, can create serious problems for the application.

2. The L-1A Visa for Company Executives or Managers

The L-1 visa allows a foreign company to transfer certain employees to a related U.S. company. It can also be used to open a new U.S. office.

There are two types:

  • L-1A: for managers and executives
  • L-1B: for employees with specialized knowledge

For business owners and founders, the L-1A is usually the more relevant option.

You Must Have a Qualifying Foreign Business

The foreign company and the U.S. company must have a qualifying relationship, such as parent, subsidiary, branch, or affiliate.

The foreign company must also continue doing business while you are in the United States.

You Must Have Worked for the Foreign Company

You generally must have worked for the foreign company for at least one continuous year within the previous three years.

For an L-1A, your role abroad and in the United States must generally be managerial or executive.

Opening a New U.S. Office

A foreign company can use the L-1A to open a new U.S. office.

The company must show that it has secured business premises and has the financial ability to support the new operation.

Within one year, the U.S. business must be able to support a managerial or executive position.

How long is the L-1 visa valid?

For a new office, the initial approval is generally limited to one year. L-1A status can generally be extended for a maximum total of seven years.

Can your family come with you?

Yes. Your spouse and unmarried children under 21 can come to the United States in L-2 status.

Can your spouse work?

Yes. L-2 spouses are generally authorized to work in the United States and may work for any U.S. employer.

Can your children attend school?

Yes. Children in L-2 status can attend school, but they are generally not authorized to work based solely on their dependent status.

Common Reasons for Denials

Common issues include failing to prove the relationship between the foreign and U.S. companies, failing to prove the required one year of employment abroad, or failing to show that the U.S. position is truly managerial or executive.

For new offices, weak business plans, insufficient staffing, or lack of evidence that the business can support a managerial position may also lead to denial.

How Can an L-1A Holder Get a Green Card?

Many L-1A managers and executives may qualify for a green card through the EB-1C Multinational Manager or Executive category. Unlike many employment-based green cards, EB-1C does not require PERM labor certification.

The U.S. company first files Form I-140. Once a green card is available under the Visa Bulletin, the L-1A holder may file Form I-485 to adjust status in the United States. If the category is current, the I-140 and I-485 may sometimes be filed at the same time.

3. The O-1 Visa for Individuals of Extraordinary Ability

The O-1A visa is for individuals with extraordinary ability in business, science, education, or athletics who want to work in the United States in their area of expertise.

For entrepreneurs and founders, the O-1A can allow you to come to the United States to work for and help grow your own company. Unlike the E-2 visa, there is no nationality requirement or minimum investment amount.

Company Sponsorship Requirement

An O-1A beneficiary cannot directly self-petition, but a separate U.S. legal entity, such as a corporation or LLC owned by the founder, may file the petition on their behalf.

You Must Show Extraordinary Ability

To qualify, you must demonstrate that you have risen to the top of your field and have received national or international recognition for your achievements.

Generally, you must show evidence of a major internationally recognized award or satisfy at least three of eight criteria, such as:

  • Awards or prizes
  • Published articles about you or your work
  • Membership in selective professional organizations
  • Judging the work of others
  • Significant original contributions to your field
  • A critical role for distinguished organizations
  • High compensation
  • Authorship of professional or scholarly articles

Meeting three criteria does not automatically guarantee approval. USCIS also considers the overall strength of the evidence.

How long is the O-1A visa valid?

O-1A status may initially be granted for up to three years based on the time needed to complete the work.

Extensions may generally be granted in one-year increments when needed to continue the same activities.

Can your family come with you?

Yes. Your spouse and unmarried children under 21 can accompany you to the United States in O-3 dependent status.

Can your spouse work?

No. Unlike E-2 and L-2 spouses, an O-3 spouse is not authorized to work in the United States based on O-3 status.

Can your children attend school?

Yes. Children in O-3 status can attend school in the United States, but they are not authorized to work based solely on their O-3 status.

Common Reasons for Denials

A common reason for denial is insufficient evidence that the applicant has reached the top of their field. Simply being successful, owning a profitable company, or holding the title of CEO is not enough.

Other problems include weak documentation of achievements, evidence that does not show national or international recognition, or failing to show that the proposed U.S. work is connected to the applicant’s area of extraordinary ability.

How Can an O-1A Visa Holder Get a Green Card?

An O-1A visa does not automatically lead to a green card, but many O-1A holders may qualify through the EB-1A Extraordinary Ability category. EB-1A has similar, but generally more demanding, standards and allows applicants to self-petition without a job offer or PERM labor certification.

Depending on the person’s background and work, other possible options may include the EB-2 National Interest Waiver, employer sponsorship, or a family-based green card.

4. The EB-5 Immigrant Investor Program?

The EB-5 program allows foreign investors to obtain a U.S. green card by making a qualifying investment in a U.S. business and creating jobs for U.S. workers.

Unlike the above visas, the EB-5 is an immigrant visa that provides a direct path to permanent residence.

How Much Do You Need to Invest?

The minimum investment is generally:

  • $800,000 if the investment is made in a qualifying targeted employment area; or
  • $1,050,000 for other qualifying investments.

The investment must be placed at risk in the business.

You Must Create Jobs

The investment must create at least 10 full-time jobs for qualifying U.S. workers.

For a direct EB-5 investment, these jobs are generally created by the business itself. Regional center investments may also qualify based on indirect job creation.

You Must Prove the Source of Your Investment

Like the E-2 visa, the investor must show that the investment funds came from a lawful source.

For example, funds may come from employment income, business income, the sale of property, investments, gifts, or other lawful sources. The investor must provide documents tracing the money from its original source to the EB-5 investment.

Do You Have to Run the Business?

The EB-5 program does not require the same level of day-to-day involvement as the E-2 visa.

Investors may invest directly into their own business or through an approved regional center project.

Can Your Family Come With You?

Yes. Your spouse and unmarried children under 21 may qualify for green cards with you.

Can Your Spouse Work While the Green Card Is Pending?

Yes. If your spouse filed Form I-765 with the pending I-485 application, they may work in the United States once the employment authorization document (EAD) is approved. The EAD generally allows them to work for any U.S. employer or operate their own business while the green card application is pending.

Can Your Children Attend School While the Green Card Is Pending?

Yes. Children with pending I-485 applications may attend school in the United States while their green card applications are being processed.

Is the Green Card Permanent Right Away?

Initially, the investor and qualifying family members receive conditional permanent residence for two years.

The investor later files Form I-829 to remove the conditions. The investor must generally show that the required investment was made and that the required jobs were created or are expected to be created within the permitted timeframe.

Once the conditions are removed, the investor and qualifying family members become permanent green card holders.

Common Reasons for Denials

Common problems include failing to prove the lawful source and path of the investment funds, failing to place the required capital at risk, or failing to demonstrate that the investment will create the required 10 jobs.

Ready to Start Your Business in the United States?

Choosing the right immigration strategy may depend on your nationality, business background, investment ability, and long-term goals. Whether you are investing in a new business, expanding an existing company, or qualifying based on your professional achievements, the E-2, L-1A, O-1A, and EB-5 each offer different paths to living and working in the United States.

If you are considering starting or expanding a business in the United States, contact our office to discuss your options and determine which visa strategy may be the best fit for you and your family.

Contact Us. If you would like to schedule a consultation, please text 619-483-4549 or call 619-819-9204.

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