How will you spend a "Substantial Amount" for a service-based business?
For starting a company for app development/ software company/financial firm such as accounting/recruiting firm or any other service based company, The minimum amount of investment recommendation is of $100,000 USD. For the E2 investor visa there is no minimum amount that must be invested but however there are some general guidelines for it:
- The amount invested must be substantial in a proportional sense. This explains that the more expensive the business, the lower the percentage of the start-up costs you need to invest. However, the government points out specifically that a business with a start-up cost of $100,000 would require a 100% investment.
- The investment amount must be enough to ensure the investor’s financial commitment to the business.
- And also the investment must be enough to support the investor which will successfully develop and direct the enterprise.
We specialize in U.S. business formation for non-residents, and know exactly how to help.
what this all mean in short? It means that the government is looking for a $15,000 , a couple of computers and laptops and a Facebook advertising campaign. Even though this may be enough to cover the start-up costs of your business, the government just verifies a financial commitment to the business and that you will successfully grow the business. All this is done by the US government because they just want to ensure that you won’t just simply move to the US and then later drop the business. Therefore the officers ensure that you will put in all your efforts and make this business a successful business in future with your hardwork and dedication. So the more you invest, the more assurance the government officials will have in your intent, that you will continue to carry your business and give your 100% towards your business to make it successful.
One more question frequently asked by the investor is what if my business cost me around $40,000 to start? Do I still have to spend $100,000?
It’s a generic thought that can hit you and this question goes this way, Visa to america never tells any of his investor to spend on completely worthless things. There are certain things which count towards the investment and that are:
- Professional services: This category includes your immigration attorney, the business plan writers, any corporate attorney or other service that helped you set up the LLC or Incorporation and more. Anyone who gives you professional help or advice in order to start this business will likely fit in this category.
- Business Materials: This may include laptops, computers, work-only phones, printers and all the materials used in your business. In some instances you may be able to include vehicles as well.
- Office rent: Rent will definitely count toward your investment, but only the rent you have paid before you apply for the E2 investor visa will count. So, if your rent is $1,000 a month and you pay for a whole year up-front, you can use $12,000 as investment. However, if the rent is $1,000 a month and you have signed a year-long rental agreement but only paid for the first two months, only $2,000 will be considered as your investment.
- Software systems: There may be software that is helpful to run your business such as CRM. You should be able to use the cost of this software or internet system as part of the investment.
- Marketing/advertising: This is a big category and can include a website design, Google ads, SEO, Facebook ads, marketing consulting company and more can also be counted in your investment.
(PS- All this above mentioned things are not exclusive. There may be other investment that will work and All of the above investment material are the investment which can work or maybe not but you can have a discussion with our investment experts.)