E-2 Business Ideas by Budget: $100K, $150K, $250K, $500K and $1M+

The right E-2 business depends on your budget, because the law ties the investment to the cost of the business. Around $100,000 suits lean service businesses; $150,000 to $250,000 opens franchises, cafes and small acquisitions; $500,000 and up buys established companies with staff. At every level, the business must be funded in proportion to its cost and be more than marginal.

This guide maps business types to five budget tiers, with typical staffing, margin considerations and risks for each. The figures are typical ranges from our practice, not legal thresholds or quotes for specific franchises.

How do proportionality and marginality shape your options?

Two rules from the Foreign Affairs Manual, 9 FAM 402.9-6, decide which businesses fit which budget.

Proportionality. There is no minimum dollar amount. The officer compares your qualifying investment with the total cost of the business on an inverted sliding scale: the cheaper the business, the higher the share expected. The FAM’s examples are 100% of a $100,000 business at one end and $10 million in a $100 million business at the other. In practice, a business that costs under $150,000 should be funded close to 100%. Learn more in our guide to the E-2 visa minimum investment.

Marginality. The business must have the present or future capacity to generate more than a minimal living for you and your family, or make a significant economic contribution, generally within five years. That is why hiring plans matter more than the investment figure in the lower tiers.

Budget tier	Typical business types	Expected share of cost (practice)	Typical staff by year 2-3 (practice)	Main concern
Around $100K	Consulting, B2B services, e-commerce, cleaning	Close to 100%	2 to 4	Marginality
Around $150K	Home-service franchises, small fitness or education concepts	Close to 100%	3 to 6	Investor working instead of directing
Around $250K	Cafes, retail, salons, small acquisitions	75% to 100%	5 to 10	Commitment before the interview
Around $500K	Full restaurants, established businesses, small fleets	75% to 100%, or 50%+ above $500K	8 to 20	Valuation and financing structure
$1M and up	Larger acquisitions, multi-unit, hospitality	50% or more; lower above $3M	15+	Control, financing and source of funds

Before choosing a tier, subtract what you need outside the business: living costs until the business can pay you, attorney fees and the business plan. Our E-2 visa cost guide lists them.

What E-2 business can I start with around $100,000?

At this level, choose businesses where most of the cost is people and marketing rather than buildings and equipment.

Business type	Why it fits	Margin considerations	Key risk
Consulting or professional services	Low setup cost; built on your expertise	High gross margin, but revenue limited by billable hours	Looks like self-employment without hires
B2B services (marketing, IT, bookkeeping)	Recurring client contracts	Good margins once contracts are signed	Needs a client pipeline, not just a website
E-commerce with U.S. inventory	Inventory and marketing are clear investment items	Margins depend on ad costs and returns	Officers question why you must be in the U.S.
Commercial or residential cleaning	Simple model with clear hiring	Labor-heavy; margins depend on pricing and scheduling	Owner doing the cleaning

How the tests apply. Proportionality is rarely the issue if you fund close to 100% of a realistic cost. Marginality is the main risk: the plan must show U.S. hires and revenue that supports more than your own living within five years. See our guide to E-2 consulting businesses.

What E-2 business can I start with around $150,000?

This budget opens many franchise systems and small operations with vehicles or equipment.

Business type	Why it fits	Margin considerations	Key risk
Home-service franchises (restoration, handyman, painting, cleaning)	Documented startup costs and training	Service margins are healthy; marketing spend is ongoing	Investor in the field instead of managing
Non-medical home care	Strong demand; clear hiring	Labor-intensive; state licensing in some states	Licensing timeline and staffing
Tutoring or education center	Lease plus small build-out	Seasonal revenue	Enrollment ramp-up
Mobile services with 1 to 2 vehicles	Equipment purchase is a clear investment	Fuel and insurance costs	Too small to employ others

How the tests apply. Fund close to the full cost, including the franchise fee, vehicle, equipment and early marketing, and commit it before the interview. Read our guide to E-2 franchises for how franchise costs are documented.

What E-2 business can I start with around $250,000?

At this tier, physical locations and small acquisitions become realistic.

Business type	Why it fits	Margin considerations	Key risk
Cafe, bakery or fast casual	Build-out and equipment are visible investment	Thin margins; food and labor costs dominate	Lease and build-out not committed
Retail store	Inventory and fit-out	Depends on location and rent	Foot traffic assumptions
Beauty salon or wellness studio	Equipment plus licensed staff	Good margins at full utilization	Professional licensing
Small business acquisition	Existing revenue and staff	Earnings history makes projections credible	Price not supported by earnings
Landscaping or trades with crews	Trucks and equipment	Seasonal in some regions	Equipment loans secured by the business do not count

How the tests apply. At this cost, officers commonly expect 75% to 100% of cost to be invested. The common failure is having the money but not spending it: sign the lease, start the build-out, or put the purchase price in escrow under a signed agreement. See buying a business for an E-2.

What E-2 business can I start with around $500,000?

This budget supports businesses that answer the marginality question with real payroll from the start.

Business type	Why it fits	Margin considerations	Key risk
Full-service restaurant	Significant build-out and staff	Thin margins; volume matters	Overruns on construction
Established service company	Existing customers and employees	Earnings history; check owner dependence	Seller financing and valuation
Trucking or logistics, 3 to 5 trucks	Hard assets plus drivers	Fuel, insurance and maintenance costs	Truck loans secured by the trucks do not count
Childcare or early education center	High demand, licensed staff	Staffing ratios drive costs	Licensing and facility rules
Multi-unit franchise development	Several locations under one agreement	Scale over time	Opening schedule versus capital

How the tests apply. Above $500,000, a lower share, around 50% or more, can be enough, which leaves room for financing secured by your personal assets. Debt secured by the business itself still does not count. For worked numbers, see E-2 visa investment examples.

What E-2 business can I buy with $1 million or more?

At this level, most investors acquire an established company rather than build from scratch.

Business type	Why it fits	Margin considerations	Key risk
Distribution or wholesale company	Established suppliers, customers and staff	Working capital needs are high	Customer concentration
Light manufacturing	Equipment and skilled workforce	Capital-intensive	Equipment condition and permits
Hotel or motel operation	Active hospitality business	Occupancy-driven	Must be an operating business, not passive real estate
Multi-location service or healthcare-adjacent business	Several revenue centers	Management depth needed	Licensing and key staff

How the tests apply. The FAM accepts that an expensive business can qualify with a smaller share, citing $10 million in a $100 million business. For a business above $3 million, a lower percentage can qualify. The challenges shift to control (treaty nationals must own at least 50%), loan covenants and a long source-of-funds trail. Real estate deals need special care: see E-2 and real estate.

How do I choose the right business for my budget?

• Price the business below your total budget. Leave money for living costs, fees and a cash cushion.
• Match your experience. Officers find a plan more credible when your background fits the business.
• Prefer businesses that can hire. Hiring is the clearest answer to marginality.
• Use real numbers. Quotes, leases and invoices make the cost figure and the plan credible.

Our list of the best E-2 businesses covers more options by industry.

Next steps

Test a specific business with the E-2 investment calculator to see where it sits on the sliding scale. To shortlist businesses that fit your budget and background, book a consultation. We select or build the business, write the E-2 business plan and coordinate the evidence with your independent immigration attorney.