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Taylor
Taylor, Attorney
Category: Immigration Law
Satisfied Customers: 218
Experience:  Attorney
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My co-founder and I are operating a company in the US on an

Customer Question

My co-founder and I are operating a company in the US on an E-2 visa. We each hold 50% of the company.
Business is doing great, and we're considering raising money from VCs to continue expanding the company.
This would however mean giving up 10-20% ownership of the company. How would this affect our E-2 visa status, since now we would each own 35-40% of the company?
(We would still be the chief officers of the company and be in charge of its operations.)
Submitted: 3 months ago.
Category: Immigration Law
Expert:  Taylor replied 3 months ago.

hi my name is ***** ***** I would be happy to help!

Expert:  Taylor replied 3 months ago.

Selling some of the company would not affect your E2 visa status. There is not a set requirement for how much you must own. The only requirement is that the investment must be substantial and not MARGINAL. A marginal enterprise is one that will not generate more than enough income to provide a minimal living for you and your family or to make a significant economic contribution.

Does that adequately answer your question? let me know if you have any further questions.

Expert:  Taylor replied 3 months ago.

is there any further questions or concerns i can help you with?

Expert:  Taylor replied 3 months ago.

do you have any further questions? when you are satisfied i would greatly appreciate a positive rating! it does not cost you anything more and it is the only way i am compensated by JA! thanks for using JA and let me know if there is anything else i can help you with!

Customer: replied 3 months ago.
At what point would point would our ownership be considered marginal? What would happen if we sold 50% of our company, and now each only own 25%?
Expert:  Taylor replied 3 months ago.

The percentage of ownership is not the determining factor. A marginal enterprise is one that will not generate more than enough income to provide a minimal living for you and your family or to make a significant economic contribution. So, if you can provide for your families and selling off portions of your company will not affect that, your company would not be considered marginal and you should be ok. do you have any further questions? let me know and i would be happy to answer.

Expert:  Taylor replied 3 months ago.

Some of the evidence you may submit to demonstrate that your business is not marginal includes:

  • Detailed business plan or executive summary showing that your business will produce more than a minimal living for you and your family or will create a significant economic contribution, along with any evidence that you believe will support the statements in your business plan.
  • U.S. or foreign individual tax returns
  • Financial statements
  • Payroll summaries (i.e., W-2s and W-3)
Expert:  Taylor replied 3 months ago.

ultimately, your e2 visa status should not be affecting once you have already been granted the visa and continue to make money off of the company. does that make sense? let me know if you have any further questions.

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