E-2 Visa Business Options: What to Buy or Start

You can qualify for an E-2 visa by starting a new business, buying an existing one or opening a franchise. The law does not list approved industries. What matters is that the business is real and operating, that your investment is substantial and at risk, and that the enterprise can grow past the point of only paying your own living expenses.

Start, buy or franchise: which route fits the E-2?

Each route can work. They differ in cost, speed, risk and the type of evidence you bring to the consular officer. A new business proves itself with projections and spending. An acquisition proves itself with tax returns and payroll. A franchise sits in between, with a tested model and disclosure documents that support your numbers.

Factor	Start a new business	Buy an existing business	Open a franchise
Typical budget in our experience	$100,000 to $300,000	$250,000 and up	$120,000 to $500,000
Proof of “real and operating”	Lease, equipment, licenses, first sales	Operating history, customers, staff	Signed agreement, training, build-out
Marginality evidence	Five-year plan and hiring schedule	Existing payroll and tax returns	Franchisor staffing model and Item 19 data
Time to operate	3 to 6 months	Business already running	4 to 9 months to opening
Main risk	Unproven demand	Overpaying, hidden liabilities	Royalties, franchisor quality
Best for	Investors with a clear idea and industry skills	Budgets that can buy real cash flow	First-time U.S. owners who want a system

Budgets above are typical ranges we see, not legal thresholds. The E-2 has no minimum dollar figure. Instead, the Foreign Affairs Manual at 9 FAM 402.9-6(D) applies a proportionality test that compares your investment with the total cost of the business. For details, see our guide to the E-2 minimum investment or run your numbers in the E-2 investment calculator.

When starting from scratch makes sense

A start-up gives you full control and usually the lowest entry cost. It suits investors with a skill or market they know well, such as an engineer opening a technical services firm. The challenge is evidence: the officer must believe projections, so the lease, equipment purchases, licenses, early contracts and a well-built business plan carry the case.

When buying makes sense

An acquisition answers the hardest E-2 questions with history. The business already has revenue, employees and customers, so marginality is visible on paper. The trade-off is price and due diligence. Our guide to buying an existing business for the E-2 covers screening, escrow and deal structure.

When a franchise makes sense

A franchise brings training, systems and a Franchise Disclosure Document that itemizes the initial investment. That makes the investment easy to document and the operating plan easy for an officer to follow. Royalties and franchisor rules are the cost. See E-2 franchise options.

What makes a business E-2 friendly?

Officers test every case against the same criteria in 9 FAM 402.9-6. In practice, a business is E-2 friendly when it scores well on four points.

1. It is active, not passive

The enterprise must be “a real and active commercial or entrepreneurial undertaking, producing some service or commodity.” The FAM excludes paper organizations and idle speculative investments, naming undeveloped land and stocks held without intent to direct the enterprise. The business must also be for profit.

2. It can grow enough to hire

The enterprise cannot be marginal. Under 9 FAM 402.9-6(E), it needs the present or future capacity to generate more than a minimal living for you and your family, or to make a significant economic contribution. That future capacity should generally be realizable within five years. In practice, a hiring plan for U.S. workers is the clearest way to show this. See how employees affect an E-2 case.

3. Its cost fits your budget

Because the proportionality test is an inverted sliding scale, a $100,000 business generally needs close to full funding from you, while a much larger business can qualify with a lower percentage. Pick a business whose total cost lets your own at-risk capital be substantial. Loans secured by the business’s own assets do not count toward your investment.

4. Its spending is easy to document

Officers want to trace money from its source to the business. Businesses that spend on equipment, inventory, build-out, licenses and payroll create invoices and bank records. Businesses that spend mainly on intangible items or keep cash idle in an account are harder to present. Uncommitted money in a bank account does not count. Read more about source of funds rules.

Starting a new business instead of buying one

An independent startup has no seller’s financial history to rely on. Build an evidence file around committed investment, readiness to operate, realistic demand and a funded hiring plan. Our E-2 startup launch checklist compares the three routes and maps each startup requirement to concrete supporting documents.

Which industries commonly work for the E-2?

No industry is pre-approved, but these sectors appear often in E-2 cases because they combine hiring needs, tangible investment and understandable economics:

• Home and commercial services: cleaning, landscaping, restoration, painting, pool and pest services. Crews create jobs early.
• Senior care and health services: non-medical home care, staffing, therapy clinics with licensed staff.
• Food and hospitality: cafes, bakeries, quick-service restaurants and catering. High investment and staffing, thinner margins.
• Logistics and transportation: trucking, car hauling, last-mile delivery, freight brokerage with staff.
• Construction and trades: remodeling, roofing and specialty contractors, subject to state licensing.
• Education and children’s services: tutoring, enrichment, early learning, language schools.
• Professional and technology services: IT services, software, marketing agencies and consulting firms that hire.
• Import, wholesale and e-commerce: with inventory, warehousing or fulfillment contracts and a team.

Our guide to the best businesses for an E-2 visa explains why each of these works and where each tends to struggle.

What should you avoid?

Some investments fail the E-2 tests regardless of the amount involved:

• Passive real estate. Buying rental homes or condos and collecting rent is an investment, not an operating enterprise. Active real estate businesses, such as property management for third-party owners, are different. See E-2 and real estate.
• Marginal one-person businesses. A solo consultancy, a single food truck run by the owner or a dropshipping store with no staff is the classic marginal enterprise.
• Securities and speculation. Day trading, holding stocks or holding land for appreciation does not qualify.
• Paper companies. An LLC with a bank account and a website but no operations is not “real and operating.”
• Businesses you cannot direct. As one of three equal partners, you would not have control on your own, which affects the investor route. See E-2 ownership rules.

How TealBridge helps you choose and acquire the business

We are a business consultancy, not a law firm. Our work starts before any filing: we help you choose a business that fits your budget, skills and the E-2 criteria, then build it so the evidence exists when your attorney prepares the case.

• Business selection. We compare start-up, franchise and acquisition options with real numbers for your budget and market. See our E-2 visa consulting services.
• Acquisitions. TealBridge Investments, our acquisition advisory practice, searches, screens, values and structures purchases, with escrow and visa contingencies coordinated through partner attorneys and escrow agents. See business acquisition advisory.
• Launch and documentation. Entity, banking, lease, licenses, first hires and an investment schedule reconciled to bank records.
• Business plan. A five-year E-2 business plan with market analysis, hiring plan and use of funds.

Independent licensed immigration attorneys, from our partner network or your own counsel, prepare and file the visa application.

Next steps

Start with the E-2 eligibility checker to confirm your nationality and budget fit, then browse the business guides and city pages below. When you have a shortlist or a budget, book a consultation and we will tell you which route fits your situation.