(CON'T) What are E-2 Visa holders? What are Treaty Investors?

NOTE: This is the second installation of a series of blogs about E-2 visa holders, better known as "Treaty Investors."

Yesterday, a general overview was provided of E-2 visas, for foreign entrepreneurs known as Treaty Investors. A requirement for Treaty Investors is to invest in funds or equipment for a business enterprise in the United States. The investment must be at risk of the market, which means it is subject to either profit or loss. If funds are in a bank account, the Treaty Investor must show its irrevocable commitment to the business. Sometimes, escrow funds may qualify.

The Treaty Investor's investment must be substantial, relative to the total cost of purchasing or creating the business. This can be determined in part on the type of business, the size of the business and the future potential for profit.

Tomorrow, we will continue with more information on E-2 visa holders. If you have questions, please contact laninau@aislaw.com.