Key Differences Between E-1 & E-2 Visas
Despite being vital financial and diplomatic links between the United States and treaty nations, E-1 and E-2 Visas still have significant distinctions.
Trade & Investment Requirements
The E-1 Visa focuses on the volume and continuity of trade between the United States and the treaty country. If you are applying for a Treaty Trader Visa, it’s crucial to establish substantial and principal trades.
Substantial Trade. “Substantial” denotes a consistent flow of sizable international trade items through numerous transactions over time. There is no minimum monetary threshold, but the trade volume must be sufficient to ensure a continuous flow of global trade between the United States and the treaty country.
Principal Trade. The trade must be primarily between the United States and the treaty country. This means that more than 50% of the total volume of international trade conducted by the E-1 Visa holder must be between the two countries.
Meanwhile, the E-2 Visa centers on the size and impact of the investment in the United States. You must demonstrate these factors to strengthen your application:
Substantial Investment. The E-2 Visa requires a considerable capital investment in a bona fide enterprise or establishing a new business in the United States. While there’s no fixed minimum dollar amount, the investment must be significant relative to the total cost of purchasing or creating a new enterprise.
At Risk. The investment must be at risk, meaning you must have committed the capital so that it is subject to partial or total loss if the enterprise fails. This commitment must be real and irrevocable.
Generally, both Visas require that your business activities benefit the U.S. economy and create or sustain economic engagement.
Origin Of Goods & Funds
The treaty trader is available to anyone employed by a legitimate and continuous U.S. market trading business. You aren’t required to be the source of traded goods, services, or finances. Meanwhile, you can simply represent a corporate entity as a senior manager or other key employee.
The conditions for an E-2 Visa are more stringent. Your capital must come from personal savings or funds secured through lawful means. Using someone else’s finances to obtain this Visa is against the regulations. It is only accessible to those demonstrating a financial commitment to a U.S. business venture.
Application Processes
Since both Visas fall within the nonimmigrant Visa category, the application process begins with submitting the Form DS-160, Online Nonimmigrant Visa Application. You must complete this form for all individuals accompanying you, including family members, and submit it to a US consular officer.
In addition to this form, you must provide a package of supporting documents, which may vary depending on the Treaty Visa you’re applying for. For an E-1 Visa, you must furnish documentation of the type of trade you’ll engage in, continuity plans, and other relevant papers.
To obtain an E-2 Visa, you must establish the size and source of your investment funds and the enterprise’s operational viability. You also need to offer proof of your business plan and launch capability. Remember that business immigration law officers may request additional documents when required.
Job Creation
While job creation in the United States can be a positive outcome of the trade activities conducted under an E-1 Visa, it is not a primary requirement or expectation. The E-1 Visa does not mandate creating a specific number of jobs.
Increased trade activities might indirectly create work opportunities from international transactions, such as logistics, distribution, and support services. However, these positions are not the central focus of the application and approval process.
The E-2 Visa, on the other hand, places significant importance on the investment’s capacity to create jobs for U.S. workers. The investment must be substantial and support the creation or maintenance of direct employment opportunities within the United States.
You often need to present a business plan that outlines the enterprise’s projected growth and expected number of jobs to be created. This plan should demonstrate that the enterprise will require hiring U.S. workers and contribute to the country’s labor market.
Distinguishing between these closely related categories can be tricky, but understanding their unique factors can empower you to make informed decisions. Given the critical points and differences, seeking guidance from a reputable law firm in Texas is wise. They can provide clarity and quality advice tailored to your specific situation.
Lozano Law Firm - Abogados de Inmigración
5718 University Heights Blvd #104
San Antonio, TX 78249
(210) 899-2290
https://abogadolozano.com
