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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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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