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Can an E-2 Investor Draw Funds from the Business Instead of Taking a Salary?
E-2 investor visa applicants have options when it comes to how they will be paid. If the applicant prefers to pay herself a salary, that is permitted. It is also allowed for the person to instead take drawings from the business.
There are several things that the E-2 investor should keep in mind if they choose to take drawings from the business rather than receive a fixed salary.Firstly, draws paid to the person would presumably come from the company’s cash flow and/or profits. As a result, the investor should be sure that the financial projections included with the investor (such as in the business plan) show that the business generates sufficient cash flow and profit to support the individual and their family.
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In other way the person should not take drawings in an attempt to hide the fact that the business’s finances will likely not support a sustained salary for himself. Government officers are trained to scrutinize this information and ask how the E-2 applicant will support herself in the United States, so financial figures that suggest that the company will struggle to compensate her could very well compromise the application.
Secondly, An E-2 visa investor can do is make his application very easy to understand to the government officials.So how can the E-2 investor applicant draw compensation from the business and not receive a defined salary, while not raising unnecessary scrutiny by the reviewing officer?
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Whether it is a post-COVID-19 reaction or simply a new wave of entrepreneurship goals, people are looking for the freedom to start and operate a business in America. While purchasing a business or a franchise still works, it seems to have trended down lately. Either way we love entrepreneurs! We help E2 Visa applicants because we love the entrepreneur’s enthusiasm, and we are known for helping to fulfill “The American Dream.” We’re here for you and ready to get to work.
You may have questions such as, “My spouse needs to work so can we get the permit quickly”? The answer is, yes!
As of November 2021, spouses of E2 Visa investors are allowed to work “incident to status.” This means that they won’t necessarily need a separate work permit to work in the U.S. Wait time for spouse eligibility to work has decreased from 5-6 months in 2021 to only a few days in 2022.
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Visa to America, the leading advisor for identifying and analyzing E-2 investor Visa eligible businesses, has consulted hundreds of Canadian families via meetings with free consultation. Contact us now at +1(202) 951-0802 or email us at info@visatoamerica.com to schedule a free consultation with our investment experts.
