E-2 Visa for Software Consulting Companies

January 28, 2025

by Hasan Alaz, Esq., Founding Attorney

E-2 Visa for Software Consulting Companies

The E-2 investor visa is a great choice for software consulting businesses looking to establish or expand their presence in the U.S. This visa allows entrepreneurs and investors from treaty countries to operate and grow their businesses while residing in the U.S.

Overview of E-2 Visa
Benefits for Software Consulting Companies
E-2 Visa Investment Requirements
E-2 Application Steps for Software Firms
Challenges and Tips
Frequently Asked Questions
Disclaimer

Overview of E-2 Visa

The E-2 visa allows nationals of treaty countries to live and work in the U.S. while managing their investment in a business. This visa is perfect for tech professionals wanting to establish software consulting businesses due to its flexible investment requirements.

Benefits for Software Consulting Companies

Low Investment Thresholds
Software consulting businesses often require significantly less initial investment compared to industries like manufacturing, retail, or hospitality. Costs for starting a software consulting company typically include essentials like office equipment, software licenses, marketing, and professional services. This makes the E-2 visa particularly appealing to entrepreneurs in this field. Since the U.S. government does not specify a minimum investment amount for the E-2 visa, software consultants can meet the "substantial investment" requirement with amounts proportionate to the costs of operating their business.

For example, a software consultant may invest $100,000 to set up a business, which covers high-quality laptops, cloud storage subscriptions, a polished website, and a small office space. This relatively low investment threshold allows more professionals to consider expanding their businesses to the U.S.

Flexibility
The software consulting industry is one of the most adaptable sectors for E-2 visa holders. Entrepreneurs can choose from a wide range of services, such as:
- Custom Software Development: Building tailored software for businesses.
- IT Consulting: Advising companies on technology strategies and solutions.
- Tech Support Services: Offering on-demand technical support to organizations.
- Cloud Integration and Migration: Assisting businesses in transitioning to cloud platforms.
- Cybersecurity Services: Providing expertise in securing IT systems and data.

This flexibility allows software consultants to pivot their services based on market trends, client demands, and emerging technologies. Additionally, consultants can work with clients across various industries, from healthcare and education to finance and e-commerce, further increasing the scope and scalability of their business.

Family Inclusion
One of the most attractive benefits of the E-2 visa is its ability to accommodate family members. Spouses of E-2 visa holders can apply for work authorization, enabling them to work in any industry or even start their own business. This flexibility can ease financial burdens and provide additional income or entrepreneurial opportunities for the family.

Unmarried children under the age of 21 can attend U.S. schools and universities, offering access to world-class education. Children can study in public schools free of charge or enroll in private institutions. These educational opportunities are a significant incentive for families seeking a high-quality education for their children in the United States.

Indefinite Renewals
Unlike many other visa categories, the E-2 visa can be renewed indefinitely, provided the business remains active, profitable, and compliant with visa requirements. This feature allows software consulting companies to establish a long-term presence in the U.S. without the need for permanent residency. Renewal eligibility depends on factors such as:
- Maintaining an operational business that generates revenue.
- Meeting the "non-marginal" requirement, which means the business must provide more than just enough income to support the visa holder and their family. Typically, this involves creating jobs for U.S. workers.

For software consulting companies, this renewal flexibility means they can focus on scaling their operations without worrying about strict time limits. As long as the company continues to contribute economically and remain compliant, the visa holder can renew their E-2 status as often as needed.

Global Market Access
Operating a software consulting business in the U.S. positions E-2 visa holders to access one of the largest and most lucrative technology markets in the world. The U.S. is home to numerous multinational companies, tech hubs, and startup ecosystems, offering abundant opportunities for collaboration, networking, and client acquisition. Additionally, having a U.S.-based business enhances credibility, making it easier to attract international clients and build a global reputation.
Streamlined Business Operations
The software consulting industry allows for lean operational models. Many services can be delivered remotely or through hybrid work arrangements, reducing the need for extensive office space or physical resources. This operational efficiency translates to lower ongoing costs and increased profitability, which are advantageous for meeting E-2 visa requirements.
Scalability and Growth Potential
Software consulting businesses have significant potential for growth and scalability. As demand for technology solutions continues to rise across industries, E-2 visa holders can expand their services, hire additional employees, and open multiple offices within the U.S. This ability to grow ensures that businesses can remain viable and competitive over the long term.
Work-Life Balance
Operating a software consulting business often allows for more control over work hours and project selection, making it easier to achieve a desirable work-life balance. This is particularly beneficial for E-2 visa holders with families, as they can allocate time for personal growth, family activities, and exploring life in the U.S.

These benefits make the E-2 visa an attractive option for software consulting professionals seeking to expand their businesses to the U.S. The combination of low investment thresholds, flexibility, family inclusion, and long-term operational potential sets the stage for success in one of the world’s most dynamic markets.

E-2 Visa Investment Requirements

Substantial Investment

The E-2 visa requires that the investment be "substantial," but what does this mean for a software consulting business? The investment must be significant enough to demonstrate your financial commitment to the enterprise and ensure its operational success. While there is no specific dollar amount defined as "substantial," it should be proportional to the needs of the business.

Examples for Software Consulting Businesses:

Initial Setup Costs:
- Purchasing high-performance laptops, servers, and other IT equipment.
- Acquiring necessary software licenses (e.g., project management tools, CRM systems, cybersecurity software).
Office Space:
- Leasing a small office in a business district or coworking space to meet clients and establish a physical presence.
Marketing and Branding:
- Creating a professional website, digital marketing campaigns, and social media presence to attract clients.
- Branding expenses such as logo design, business cards, and promotional materials.
Human Resources:
- Salaries for initial hires, such as a junior consultant, marketing assistant, or administrative support.
- Payments for independent contractors or freelancers supporting the business.

The proportionality principle applies: if your business requires $75,000 to operate effectively, an investment close to this amount would be considered substantial. Demonstrating that your investment fully covers all startup costs is key to meeting this requirement.

Active Investment

The investment must be "at risk," meaning that it is not simply sitting in a bank account but is actively committed to the business. This ensures that the investor has a vested interest in the success of the enterprise and is exposed to the potential risk of loss.

Key Points for Software Consulting Businesses:

Prepaid Expenses: Payments for items such as office rent, software subscriptions, and equipment purchases demonstrate active investment.
Irrevocable Commitment: Any funds or assets allocated to the business must be non-refundable or already spent, indicating that the investor is fully engaged in the business.
Excluded Investments: Passive investments, such as simply holding funds in a business account or purchasing stock, do not qualify. For example, allocating $30,000 toward a commercial lease or purchasing $20,000 worth of IT equipment would qualify, while holding $50,000 in a savings account would not.

By committing the funds toward tangible and operational expenses, you establish that the business is real, operational, and positioned to generate revenue.

Non-Marginal Enterprise

The business must not be "marginal," meaning it cannot solely support the investor and their family. Instead, it should contribute economically to the local community, typically by creating jobs for U.S. workers and generating sufficient revenue.

How to Prove Non-Marginality:

Job Creation:
- Include a hiring plan in your business plan that outlines the roles and salaries of U.S.-based employees you intend to hire within the first year or two of operations.
- For instance, a software consulting business might hire a junior consultant, an IT support technician, or a marketing specialist.
Revenue Projections:
- Provide detailed financial projections showing that your business will generate enough income to go beyond personal support and contribute to the local economy.
- Include contracts or letters of intent from potential clients to support your projected earnings.
Growth Potential:
- Highlight plans for expanding services, increasing staff, or entering new markets within the U.S. This demonstrates your business’s potential to scale and have a long-term economic impact.

Practical Steps for Software Consultants:

Show evidence of existing or planned client contracts that would bring in consistent revenue.
Use case studies or prior successes to demonstrate your ability to secure projects and grow the business.
If you're starting with a smaller team, detail plans to gradually expand your workforce as revenue increases.

Documentation for Investment Requirements

To meet the E-2 visa’s investment criteria, you must provide clear documentation to verify the source, amount, and allocation of funds. Examples include:

Bank Statements: Showing the transfer of investment funds into a U.S. business account.
Receipts and Invoices: For purchased equipment, software licenses, office furnishings, and marketing services.
Lease Agreements: Proving your commitment to a physical business location.
Employee Contracts: If you’ve already hired staff, include their contracts, payroll records, or job offer letters.
Business Plan: A professional plan detailing how the investment is allocated, how the business will generate revenue, and how it will contribute economically.

Summary

The E-2 visa investment requirements are designed to ensure that the business is financially viable, operational, and contributes to the U.S. economy. For software consulting companies:

A substantial investment ensures your business has the resources to operate successfully.
An active investment demonstrates your financial commitment and exposure to business risks.
Meeting the non-marginal enterprise requirement proves that your business will create jobs and generate significant economic activity.

By carefully preparing and documenting your investment, you can build a strong case for your E-2 visa application while positioning your business for success in the U.S. market.

E-2 Application Steps for Software Firms

Create a Business Plan: Include 5-year revenue projections and hiring goals.
Incorporate the Business: Register your company in the U.S. and obtain licenses.
Allocate Investment: Set up your office, hire staff, and acquire necessary equipment.
Apply for E-2 Visa: Submit your application with all required documentation.

Challenges and Tips

Challenges

Proving Substantial Investment with Low Overhead Costs

Software consulting businesses often require fewer tangible assets compared to traditional industries like manufacturing or retail. This can make it challenging to demonstrate the "substantial investment" required for an E-2 visa. Since expenses such as software licenses, remote tools, or cloud services may seem intangible, proving the investment's significance relative to the business's needs becomes crucial.

Meeting the “Real and Operating” Requirement

For new tech businesses, meeting the "real and operating" requirement can be daunting. This means the business must be active and ready to generate revenue. A virtual or home-based setup, common in software consulting, might not be convincing enough for consular officers. They may expect to see a physical office, employees, or signed contracts that demonstrate the business is more than just an idea.

Convincing Revenue Projections

Many software consulting startups rely on project-based revenue or freelance contracts, which can be perceived as unstable. Without strong financial projections backed by existing or potential client agreements, the application may raise doubts about the business's sustainability and non-marginality.

Industry Perceptions

Certain consulates may be less familiar with the software consulting industry and its unique operational needs. This can lead to misconceptions about the viability of a business that lacks significant physical assets.

Tips

Prepay Expenses Like Office Rent to Show Financial Commitment

Even if your business operates remotely, renting a small commercial office space can enhance your application by demonstrating financial commitment and operational readiness. Prepaying for several months of rent or purchasing essential equipment like laptops, servers, or software subscriptions adds credibility to your investment.

Obtain Client Contracts or Letters of Intent

Securing signed agreements with U.S.-based clients or letters of intent can strengthen your case by showing that your business is positioned to generate revenue. This documentation not only proves the business's viability but also helps meet the “real and operating” requirement.

Develop a Comprehensive Business Plan

A well-detailed business plan can address consular officers' concerns by including realistic revenue projections, hiring goals, and a clear operational strategy. Include specifics like the software services you’ll offer, target market analysis, and how your business will contribute to the U.S. economy.

Emphasize Job Creation

Highlight your intention to hire U.S. workers, even if it's just one or two employees in the first year. This demonstrates your business's economic contribution and commitment to non-marginality. Include planned roles, salaries, and recruitment timelines in your business plan.

Leverage Your Expertise

Showcase your professional background and experience in software consulting to build confidence in your ability to manage and grow the business successfully. Include evidence of previous projects, client testimonials, and industry certifications.

Use Visual Evidence

Attach supporting visuals like photos of your office space, marketing materials, or screenshots of your company’s website. These details help create a stronger impression of your business as “real and operating.”

Get Endorsements from Professional Organizations

Letters of endorsement from chambers of commerce or industry associations can add weight to your application. These organizations can vouch for your business's potential and its alignment with local economic needs.

Diversify Investments Across Categories

Spending across various categories, such as marketing, technology, and operations, can make your investment appear more substantial. For example, allocate funds to website development, professional branding, and client acquisition strategies.

Prepare for Consular Interviews

Be ready to articulate your business model, investment strategy, and growth plans during the consular interview. Practice answering questions like:

Why did you choose this industry?
How will your business generate revenue and create jobs?
What makes your investment substantial?

By proactively addressing these challenges and following the outlined tips, software consulting businesses can build a stronger, more compelling E-2 visa application.

Frequently Asked Questions

1. Is there a minimum investment amount?

No, but the investment must be substantial relative to your business type. In our experience, most successful applications come with investments of $100,000 and above. However, some raises can be accepted for smaller amounts.

2. Can software consultants work hands-on?

They need to focus on directing the business.

3. Can I operate remotely?

A physical presence, like an office, strengthens your application.

E-2 visas provide software consulting entrepreneurs with an excellent opportunity to expand into the U.S. market. To ensure success, it’s crucial to prepare your application with care and seek professional guidance.

Disclaimer

The information provided in this blog post is for educational purposes only and does not constitute legal advice. While we strive to ensure the accuracy and relevance of the information presented, it is always recommended to consult with a qualified immigration attorney or legal professional for personalized advice regarding your specific situation.

Alaz Law Firm is here to provide professional guidance, but this content should not be relied upon as a substitute for direct legal consultation.