Since my last Blog article on E2 visas, I have been getting numerous emails about this hot topic from across the globe. Investors are anxious to come, but need the most up to date information about the E2 visa as a way to relocate and start a business in America.
In this article I will discuss alternative financial transactions as investments. In addition to cash, payments in the form of leases or rents for property or equipment may be calculated toward the investment in an amount limited to the funds devoted to that item in any one month, since the remaining payments will presumably be paid out of earnings from the treaty business. However, more than one month of payments may be counted if they are made in advance. For example, if the treaty investor prepays his or her equipment lease for one year, the entire year’s worth of payments may be counted as part of the qualifying investment.
The amount spent for the purchase of equipment and for inventory already in the possession of the treaty investor may be counted as part of the qualifying investment. The value of goods or equipment transferred to the United States may be considered part of the qualifying investment, if it can be demonstrated that the goods or machinery will be put to use in an ongoing commercial enterprise. The treaty investor must establish that the purchased goods or equipment are for business, not personal purposes. While a company car may not meet this burden because it may also be used for personal purposes, inventory or industrial equipment certainly will.