E2 visa for service business - demonstrating "substantial investment"

[ith123 0]

Hello, I am in the middle of working through getting an E2 visa for a business that is service-oriented and does not require physical plant or a store front or anything. I was wondering what people have seen as how to demonstrate the substantial investment for a service business? The business is an investment management business (like a mutual fund but for private clients).

It was actually set up about 8 months ago while I was in the US (spend $50k on legal fees and some start up research) and I have been working on it temporarily from Canada for the last 3 months while working on the visa issue. It's clearly a viable business and I already have commitments from 30 clients. I've read in some places that for services businesses they rely more heavily on the proportionality test - which is more of a question of whether the funds committed are enough to make it a viable business as opposed to looking for a large fixed asset?

One argument that I think could be valid for this is that unlike if this were a straight consulting/advisory business that just provided advice for money, the model is that clients actually give me their money and then I manage it. Part of the sales pitch is that I place a significant of my/firm (I own 100%) money at risk alongside their funds (i.e. eat my own cooking). Could I use these funds to demonstrate the substantial investment even though they would be in the form of securities (i.e. stocks = fractional claims on pools of capital assets) vs direct ownership of capital assets? They are certainly at risk if I do a poor job for the clients. The business would still work if I didn't do this but it wouldn't be able to attract as many clients, as this "skin in the game" factor is the main reason I am win clients.

Thanks, would be great to hear how this 'substantial investment' criteria is demonstrated with other services businesses - I have no idea how this or a consulting type business would? I mean even if I got an office lease that would only be like $500-1000/month. I do intend to hire people but I wouldn't be paying them until after i got the visa.

[Boiler 45,525]

http://www.visajourney.com/forums/topic/298855-e2-visa-for-investment-advisory-business/page__p__4523682__fromsearch__1#entry4523682

Your previous thread on the same subject. You seem to be asking the same questions. Would be best if you kept them in one thread.

You could buy rather than rent premises.

Sounds like your employees will need vehicles to get around in, you will need equipment for them to use. Most service companies require a fair amount of equipment, often there is a franchise fee, Molly Maids whatever.

Your funds do not have to be spent, they can be held in ESCROW subject to the issuance of a Visa.

[ith123 0]

http://www.visajourney.com/forums/topic/298855-e2-visa-for-investment-advisory-business/page__p__4523682__fromsearch__1#entry4523682

Your previous thread on the same subject. You seem to be asking the same questions. Would be best if you kept them in one thread.

You could buy rather than rent premises.

Sounds like your employees will need vehicles to get around in, you will need equipment for them to use. Most service companies require a fair amount of equipment, often there is a franchise fee, Molly Maids whatever.

Your funds do not have to be spent, they can be held in ESCROW subject to the issuance of a Visa.

It's really an information business so it really doesn't need any fixed assets at all aside from a few $k of laptops, it's built off of reputation and skills like a consulting company would be. Even similar businesses that are 50X bigger have no physical assets (though they would, like this, have substantial net worth in the form of liquid securities that are placed alongside clients - perhaps similar to an online bank business that outsources its IT so it doesn't own its own servers) aside from some computers I guess.

Thanks

[Boiler 45,525]

So you are saying the business model does not qualify for an E2?

[ith123 0]

So you are saying the business model does not qualify for an E2?

I don't think the E2 has an explicit intention to discriminate against businesses that do not require fixed assets? Was that the goal of the policy? Have consulting businesses or other information-based businesses ever been granted E2's despite their lack of fixed assets?

[Boiler 45,525]

That would a good question to ask your Lawyer.

I have never heard of anybody getting an investment visa, without making an investment.