Starting a Business in the US? 5 Visa Options for Entrepreneurs

Napoleon

Sep 22, 2024 — 8 min read

Whether you want to start a business in the US or have already established one, you may qualify for an immigrant or non-immigrant visa. Fortunately, US immigration laws are strict on these provisions, providing numerous options for entrepreneurs looking to move and do business in the country.

The US is a haven for global entrepreneurship, as it is business-friendly and innovative for all businesses. Startups can access funding and create strong networks, making it an ideal destination for business founders.

Business founders living abroad can find starting and running a business challenging without residing in the US. However, since entrepreneurial visas exist, business founders can apply for the correct visa and then run their businesses in the US. If you’re starting a business in the US, welcome to our informative post today as we discuss the five visa options for entrepreneurs.

5 Visa Options for Entrepreneurs

Entrepreneurs looking to benefit from the international market by creating a US-based company need to know about the five entrepreneurial visas they can use to work in the country. Let’s discuss them together:

1. Entrepreneur Visa - E2 Visa

The E2 visa allows entrepreneurs to invest in a US-based business and run it proactively. Typically, this visa is only available to foreigners whose country of origin has an E2 treaty with the US. A spouse and children can benefit from the E2 visa, with the spouse getting work authorization and attending school.

It’s a non-immigrant visa, which doesn’t require a green card. However, E2 visa holders can convert it to a green card over time if they’re interested. Entrepreneurs can renew this visa as many times as possible as long as it meets the E2 visa requirements, including:

The applicant’s country of origin must have an E2 treaty with the US.
Applicants need to invest significantly in a US company; the most recommended amount is $100,000 or more.
The company must be active and profit-making.
The applicant must direct and develop the E2 company.
The investment money in your company must be at risk and irrevocably committed to the company. Simply put, the investment money must be spent, not just in the bank.
The source of your investment funds must have been secured lawfully.
Once the E2 status ends, you must be prepared to depart from the US.

Benefits of the E2 Visa

Business flexibility - The E-2 Visa allows treaty investors to invest and operate in several E-2 businesses in several categories.
Family immigration - Beneficiaries can bring their spouses and unmarried children under 21. The children can attend school, and the spouse can find work in the US.
No required investment - The investment ceiling in the E2 visa category isn’t specific. Still, it must be substantial to cover all costs, which might differ depending on the industry and business location.
Quicker processing - Compared to other visa types, processing an E2 visa is fast, and the beneficiary can get a reply in weeks or several months.
Easy renewal and extension - Renewal of the E2 visa is indefinite if the beneficiary complies with the program’s standards.
Pathway to residency - As a non-immigrant visa, the beneficiary can get a green card if they meet the criteria.

2. Entrepreneur Visa - EB-5 Visa

The EB-5 visa is similar to the E2 visa but differs in some ways. Unlike the E2 visa, which doesn’t lead to a green card, the EB-5 visa can get holders a green card and their children and spouses. The children must be under 21 years old, but the concept mainly depends on investing in a US company and creating US jobs.

The EB-5 is an immigrant visa requiring a higher minimum amount than the E2 visa. The minimum necessary amount for EB-5 is currently $800,000, and there’s a requirement to create ten full-time jobs for US employees. The requirements for EB-5 are:

Invest in a new commercial enterprise of at least $800,000
The investment must be at risk, actively trading, or committed somewhere, not sitting idle in the bank.
The investment amount must have been earned lawfully.
The investment must create ten full-time jobs for US employees in the US.
You must be an active member in the management of the business.
Read all EB5 visa requirements.

Benefits of the EB-5 Visa

Business-friendly US ecosystem - As the best business-friendly environment in the world, beneficiaries enjoy the latest technology, access to international markets, and attractive taxation policies. The EB-5 holder can work anywhere in the
US while stimulating the US economy through job creation and capital investment.
Quick Path to Residency - Unlike the normal US Green Card process that takes years, the EB-5 visa is a fast path to permanent US residency. The visa grants conditional resident status in the first two years, similar to permanent residents’ benefits. After five years, the holder is eligible to apply for US citizenship.
Immigrate with family - The investor’s family (Spouse and unmarried children under 21 years old) can join them by immigrating to the US. The family can also get green cards simultaneously with the investor.
No visa sponsorship requirement - The beneficiary doesn’t need an American sponsor or employer to qualify.
Education benefits - Children who are unmarried and under 21 years old can join schools in the US and enjoy all the same privileges as US citizens.
Travel benefits - The visa holders can leave and enter the US at will without restrictions.
Healthcare Access - Other benefits EB-5 investors enjoy include high-quality healthcare, treatment, and insurance akin to other US citizens.

3. Entrepreneur Visa - L1 Visa

The L1 visa is a non-immigrant visa that allows a foreign company to transfer a manager or an executive to a US-affiliated company. The US-affiliated company must have a qualifying relationship with the foreign business, like a parent or subsidiary relationship or a branch office.

Through the L1 visa, a foreign company can transfer a manager or executive to the US to work for a new office. Hence, entrepreneurs who want to start a business in the US can optimize this opportunity. The requirements for L1 visa include:

The two companies (foreign and US affiliates) must have a qualifying relationship.
The L1 beneficiary must have worked for the foreign company for at least a year full-time and within three years before applying for the visa.
The beneficiary must have worked for the foreign company and held the position of a manager, an executive, or a specialized or knowledgeable worker.
The beneficiary must be coming to the US to work in the same position (manager, executive, or specialized knowledge worker) in the US company.

4. Entrepreneur Visa - EB1C Visa

The EB1C visa is an immigrant visa entrepreneurs should consider as it’s the immigrant version of the L1 visa, meaning it qualifies for a green card. Like the L1 visa, the EB1C lets a foreign company transfer a manager or executive to the US to work in an affiliated US company. However, an additional requirement is not included in the L1 visa: the US company must be functional for at least an entire year before filing the EB1C appeal.

Another difference between the two visas (EB1C and L1) is that the EB1C visa doesn’t allow the beneficiary to work as a specialized knowledge worker. The beneficiary can only work as a manager or executive in the US company. Here’s a summary of the EB1C visa requirements:

A qualifying relationship between the foreign and US companies as affiliates, subsidiaries, or parent companies.
The beneficiary must have worked for the foreign company for an entire year continuously, full-time, within three years before applying for the EB1C visa.
The beneficiary’s employment position in the foreign company must have been a manager or executive, which is the exact job they will be doing for the US company.
The US company must have existed for about a year before filing the EB1C petition.

5. Entrepreneur Visa - International Entrepreneur Rule

The International Entrepreneur Rule is a temporary method for international entrepreneurs to live and work in the US. It’s not a visa program but a period of authorized stay granted by the Department of Homeland Security (DHS). DHS can utilize its patrol authority through this rule to grant an approved stay of up to 30 months. The beneficiary can potentially renew the stay period for a further 30 months.

To qualify for the International Entrepreneur Rule, a beneficiary must prove that their stay in the US will offer a significant public benefit. The benefit can be confirmed through the potential to impact rapid business growth and job creation. The requirements for the

International Entrepreneur Rules are:

The beneficiary must be an actual owner of a startup business created in the last five years in the US.
The company must have the potential for fast growth and job creation.
The beneficiary must play a central and active role in the startup company.
The beneficiary must demonstrate how their stay in the US will offer public benefit to the US-based startup. How can they prove this? The way to prove this is by showing the following:

Receipt of significant capital investment from qualified investors
Proof of significant prizes or gifts by federal, state, or local government entities
The startup partly satisfies 1 and 2 or either. Plus, it is more reliable and convincing proof of the startup’s rapid growth and job creation potential.

Factors to Consider Before Moving to the US

Once you have a visa, there are many other things to have set up before and after moving. Here are factors to consider before moving abroad:

Update bank and credit card accounts to ensure you can still send money or make payments back home. WHY? You may wonder. After moving to the US on an E-2 or EB-5 visa, you become a non-resident in your country of origin.
Maintaining a connection to family and friends through social media apps and getting a local US phone and number to keep the communication on, especially when homesick comes knocking.
Cultural changes may be challenging since the US is home to hundreds of different cultures. So, getting used to the mixed culture and adapting what you’re comfortable with while keeping your home traditions will help you blend in better.
Accommodation and logistics is an easy way to settle in the US. You can look for residential apartments online before shifting or find friends or family who can accommodate you before getting your place.
Healthcare is expensive in the US. Therefore, you should consider insurance options in the US to find hospitals you can approach in case of an emergency.

Frequently Asked Questions

Which is the ideal entrepreneur visa in the US?

The US offers two investment visas (E-2 and EB-5) that allow non-US residents to invest and run commercial enterprises in the US. These investment visas vary in requirements that foreigners need to fulfill, but both offer an opportunity for them to invest, live, and work in the US.

Is there a visa that allows you to start a business in the US?

The E2 visa allows holders to operate their own business in the US. The E2 visa holder must invest substantial money in a US-based company.

What is the total investment amount for an EB-5 visa?

The total investment for an EB-5 visa is at least $800,000 in a Targeted Employment Area to fund a business that can employ ten American workers. Besides, the visa holder can work with other investors or individually.

How do you describe the EB-5 visa program?

Under the EB-5 program, investors, spouses, and children under 21 rs (unmarried) qualify to apply for permanent residence through a Green Card. The applicant must also invest significantly in a US company and employ US workers.

Who qualifies for a US business visa?

You qualify to get a business visa in the US if you visit the country for business purposes and have enough money to support yourself during your stay there. Plus, you should be ready to leave when your visa expires and return to your country of origin.

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In Summary

The United States has been a destination for international top talent for the longest time. The ability to attract global entrepreneurs has spiked innovation, creating jobs, sprouting new industries, and increasing opportunities for Americans to earn revenue.

If you’re considering starting a business in the US, the five visa options entrepreneurs can explore are detailed above. You can start and operate a business in the US by meeting the requirements provided under each visa program. Fortunately, if you want to live and become a US citizen, you can apply for E2 and EB-2 visa programs. Do you have a question about starting a business in the US or the best visa option for you? Kindly contact one of our Foundeck experts here for help today.