How to Make Sure Your Business is Not a Marginal Enterprise When Applying for an E-2 Visa

Applying for an E-2 Visa is a great option for foreign nationals who want to invest in and operate a business in the United States. However, not every business qualifies for an E-2 Visa. One of the most important requirements is that the business must not be a marginal enterprise. 

What does that mean and how can you make sure your business meets this criterion? 

Below, we will explain the concept of marginality and the factors that the U.S. government considers when evaluating a business.

What is a Marginal Enterprise?

Think of a “marginal enterprise” as a business that operates on the bare minimum. It might just generate enough income to support you and your family, and it does not have the potential to create significant economic benefits for the U.S. 

Here are some red flags that might trigger the “marginal enterprise” label:

• Solely focused on personal income: Businesses that only aim to generate income for the investor might raise eyebrows. Remember, the E-2 Visa is designed for businesses that contribute to the broader U.S. economy, not just your personal finances.
• Limited job creation: Ideally, your business should create employment opportunities for U.S. workers. While there is no magic number, having at least a few employees on your payroll demonstrates a positive economic contribution. Think beyond just yourself and consider how your business can create jobs and support the local community.
• Lack of growth potential: A stagnant business with no plans for expansion or diversification might be seen as lacking the potential to contribute meaningfully to the U.S. economy in the long run. Do not be afraid to dream big! Show the U.S. immigration authorities that your business has the potential to grow, create jobs, and become a success story.

Avoiding the “Marginal Enterprise” Trap

So, how do you ensure your business does not fall into the “marginal enterprise” category? Here are some tips:

• Develop a comprehensive business plan: This document should be your roadmap to success. Clearly outline your business model, projected financial statements, and most importantly, your growth strategies. Demonstrate how your business will create jobs, generate revenue, and become a thriving part of the local economy. A well-crafted business plan not only helps you secure funding but also showcases your commitment and vision to the U.S. immigration authorities.
• Show a substantial investment: While there is no set amount, a significant investment in your business shows your skin is in the game. This can include funds used for equipment, inventory, marketing, and operational costs. The more invested you are financially, the more seriously your commitment to the business will be taken.
• Hire U.S. workers: As mentioned earlier, creating employment opportunities for U.S. workers is a clear indicator of your business’s positive economic impact. Look for opportunities to hire locally and contribute to the American workforce. This demonstrates your commitment to integrating your business into the U.S. economy.
• Highlight your expertise: Showcase your skills and experience. This demonstrates your ability to lead your business toward success and contribute positively to the U.S. economy. Compile documentation highlighting your educational background, relevant work experience, and any industry awards or recognition you have received.

Applying for an E-2 Visa is Easy When You Work with Experts

Applying for an E-2 visa can be a complex process, and navigating the “marginal enterprise” hurdle can be particularly tricky. However, with our help, it can be a walk in the park.

At Jurado & Associates, P.A., we have extensive experience helping entrepreneurs like you secure their E-2 Visas. Our team of dedicated immigration attorneys will meticulously review your case, provide strategic guidance, and ensure your application is bulletproof.

Do not let the fear of the “marginal” label hold you back from pursuing your American dream. Contact Jurado & Associates, P.A. today!

Call us at (305) 921-0976, email us at romy@juradolawfirm.com, or connect with us on WhatsApp at +1 (305) 921-0976.

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