New company -- do we need profits/sales BEFORE applying for E-2??

[DrJbusiness]

We are starting up a new company (a construction related business). I'm a minor partner, and my role is to advise regarding US rules & regulations, etc. My foreign partner will primarily run the company once we are up and going. The checklist from the lawyer has some things that I don't think are relevant for us, but I'd like your feedback on that. We can show investment in the company, money already transferred to the US, source of funds all ok, etc. But we are not really operating the business yet, which in principle we cannot do until the E-2 applicant is physically here so that he can run the business. We leased a space and have been paying rent and electricity for several months, but we have no sales yet. So it seems to me we should not need to show profit & loss for the past, just projected P&L for future years. Maybe we should show a balance sheet showing what the US assets of the company are? We initially got what I think was misguided advice -- that we needed to be showing a profit before applying, so we were waiting until we are ready to actually start selling, and figure out how to make some sales and show profit before applying. But that really doesn't make sense because the E-2 person is not allowed to work here yet (has visited on tourist visa and opened bank accounts etc.). And if we are able to sell and make profit without him being here, then that suggests he doesn't really need the visa since he's apparently just an investor and is not really running things, or at least doesn't need to be in the US to do so. These are just my thoughts and I'm seeking feedback on whether my thinking is consistent with people's knowledge and experience. Thanks for any thoughts or info.

[Officier consulaire]

Hi there ! Congrats on the new venture. According to what I am reading you have been misguided. A new business needs to be set up but does not need to show any numbers before going to the Embassy. Having a US based partner however allows the company to start operations without the foreign partner being present. When 2 partners are present, the case revolves around the partners acting as a team able to show they are able and develop and direct the enterprise as 1. The business plan will outline the projected numbers the officer will make their assessment on. The moment you apply is once you have completed most or all the set up of your business and ready to open the doors for business. I m available to assist if needed.

[alexcray]

If you're purchasing an existing business, it typically needs to demonstrate substantial past profitability (around 3-5 years) to convince USCIS that the investment is viable and has a significant economic impact.

[alexcray]

We are starting up a new company (a construction related business). I'm a minor partner, and my role is to advise regarding US rules & regulations, etc. My foreign partner will primarily run the company once we are up and going. The checklist from the lawyer has some things that I don't think are relevant for us, but I'd like your feedback on that. We can show investment in the company, money already transferred to the US, source of funds all ok, etc. But we are not really operating the business yet, which in principle we cannot do until the E-2 applicant is physically here so that he can run the business. We leased a space and have been paying rent and electricity for several months, but we have no sales yet. So it seems to me we should not need to show profit & loss for the past, just projected P&L for future years. Maybe we should show a balance sheet showing what the US assets of the company are? We initially got what I think was misguided advice -- that we needed to be showing a profit before applying, so we were waiting until we are ready to actually start selling, and figure out how to make some sales and show profit before applying. But that really doesn't make sense because the E-2 person is not allowed to work here yet (has visited on tourist visa and opened bank accounts etc.). And if we are able to sell and make profit without him being here, then that suggests he doesn't really need the visa since he's apparently just an investor and is not really running things, or at least doesn't need to be in the US to do so. These are just my thoughts and I'm seeking feedback on whether my thinking is consistent with people's knowledge and experience. Thanks for any thoughts or info.

The key aspect is to convince the U.S. Citizenship and Immigration Services (USCIS) that your business is commercially viable and has a realistic chance of generating profit in the future.