Visas for Non-Citizens Wishing to Start a Business in the United States

Visas for non-citizens wishing to start a business in the United States are not required. Immigrants do not need citizenship or residency to start a small business in the United States. However, L-1 and E-2 visas for non-citizens wishing to start a business are available without much difficulty. Learn more about L-1 and E-2 visas in our free legal guide below.

UPDATED: Jul 17, 2023Fact Checked

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Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

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UPDATED: Jul 17, 2023

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UPDATED: Jul 17, 2023Fact Checked

Citizenship and residency are not required to start a small business in the United States. Some small business opportunities may allow you to reside in the United States if you qualify for an L-1 or E-2 visa. While the L-1 visa is only granted for up to one year at a time, the E-2 visa can be granted for up to two years and is indefinitely renewable.

L-1 Visa Requirements

An L-1 visa is generally limited to foreign nationals who have owned or operated a business outside of the United States and are looking to expand their businesses by opening a U.S. branch. The business plan for an L-1 visa application should include documentation showing a physical office for the business, as well as how the individual plans to support an executive position in the United States for at least a year. If after a year the new branch is successful, the U.S. government may extend the L-1 visa for another year.

E-2 Visa Requirements

To obtain an E-2 visa, an individual must research and write a successful small business plan showing how they will support a new, profitable business in the United States. To qualify for an E-2 Visa, the individual must be a national from a country with which the United States has a Treaty of Friendship, Commerce, and Navigation. If the small business that you will start will be a corporation, at least 50% of the members must be nationals from a treaty country.

Other Visa Requirements

The U.S. government requires that the investor invest a substantial amount of money in the proposed business. While there is no set limit, the amount of money invested must be enough so that the business is likely to succeed. The government determines this by comparing how much an average U.S. investor would invest in the type of business proposed. This method of comparison can have many variables, and the U.S. government has wide discretion in determining if the proposed business meets these standards.

The government will also look to see if the business funds have been irrevocably committed, which means that the investors should be able to show that the money is actively in the project itself. Additionally, the small business plan must show that the proposed business will improve the local economy and not just provide for the investor’s family. Previous success of a similar business can be a good way to demonstrate this. Improving the local economy can also be shown directly by the expected profits of the business, expected number of employees, and/or whether the investors have another source of income outside of the proposed business. The U.S. government will also look to see whether there is documentation that supports likely revenues of the proposed business. If the business is a franchise that is well known, profitability may be easier to demonstrate.

Other Considerations for E-2 and L-1 Visas

While the E-2 and L-1 visas allow an individual to reside in the United States for a substantial amount of time, the individual must usually keep a residence outside of the United States as well. Further, it’s important to note that both of these visas apply only to an individual, which means that spouses and dependents may not work or live in the United States unless they qualify independently.

Case Studies: Visas for Non-Citizens Starting a Business in the United States

Case Study 1: L-1 Visa for Expanding Business

John is a successful business owner from Canada who wants to expand his company by opening a branch in the United States. He applies for an L-1 visa, which requires him to provide documentation demonstrating a physical office for the business and his plans to support an executive position in the United States for at least a year. If the new branch is successful after a year, John can seek an extension of his L-1 visa.

Case Study 2: E-2 Visa for Small Business

Maria, a citizen of Spain, wants to start a small business in the United States. She plans to open a restaurant and applies for an E-2 visa. To qualify, Maria must write a successful small business plan that demonstrates how she will support a new and profitable business in the United States.

Additionally, she needs to be a national of a country that has a Treaty of Friendship, Commerce, and Navigation with the United States. If Maria’s restaurant meets the requirements and contributes to the local economy, she can obtain an E-2 visa.

Case Study 3: Financial Requirements for Investor Visas

Alex, an entrepreneur from Australia, intends to invest in a tech startup in the United States. He wants to apply for an E-2 visa but needs to meet the substantial investment requirement. The U.S. government evaluates the amount of money invested and compares it to what an average U.S. investor would invest in a similar business.

Alex must demonstrate that his investment is sufficient for the business to have a reasonable chance of success. He also needs to show that the funds have been irrevocably committed to the project and that the business plan supports local economic growth.

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Jeffrey Johnson

Insurance Lawyer

Jeffrey Johnson is a legal writer with a focus on personal injury. He has worked on personal injury and sovereign immunity litigation in addition to experience in family, estate, and criminal law. He earned a J.D. from the University of Baltimore and has worked in legal offices and non-profits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman Univer...

Insurance Lawyer

Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.

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