FAQ's when Buying a Business for E-2 Visa purposes
The guidelines for an E-2 visa state that you should invest a minimum of $150,000 into a U.S. business. It is extremely difficult to find a good quality business that will qualify for an E-2 visa at this price. It is recommended that you start your search with a minimum of $175,000 in mind, but most preferably $200,000+.
FAQ's
Is it okay to work with more than one broker?
In the U.K. it maybe customary to work with a few different agents while looking to buy or sell real estate. In the U.S., especially when it comes to purchasing a business it is important to work with only one business broker. By working with more than one agent, it will not only be more time consuming for you, but it could make you liable for large sums of money.
New Horizons Group has access to information on thousands of businesses for sale throughout the State of Florida. Our affiliations allow us to review listings with hundreds of other business brokerage companies throughout Florida. We have a large network program and search numerous databases when we search for businesses for you. If it is for sale, and the seller is really trying to sell the business, we will locate it for you.
Can I limit myself to a specific location?
It can be extremely hard to find a suitable business for you that will qualify for an E-2. It makes it harder when you limit yourself to a specific location. The more open to where you would like to live, the better your chances of making your dreams of living in
America a reality.
Many people moving from the United Kingdom only want to live and work in Kissimmee, Florida. It is understandable because they have vacationed for years and know that area very well. These same people, after they see other parts of Florida, decide they do NOT want to buy a business in Kissimmee. Florida has many wonderful places to live, you will probably agree as you get more familiar with other areas.
Can I buy a business for $100,000?
You may have heard that you need to invest $100,000 into a business for the E-2 Treaty Investor visa. This used to be true. However, it is extremely difficult to find a quality business that will qualify for that amount.
Most of the time, it is more realistic to look at $175,000+ as the starting point in trying to find a suitable business. It will make the process easier and quicker for you, not to mention the quality of businesses that you will be looking at will be substantially better in most cases.
Can I buy a specific type of business?
The more open you are about the types of businesses that you are willing to look at, the better chance you will have of finding a suitable business.
What are owner benefits?
It is also referred sometimes as cash flow and adjusted net. This is the monies a seller is claiming you will receive personally from the business before taxes. You will likely to see these terms on the “Business Listing Information” forms you will be reviewing.
This amount will include the owner’s salary, net profit of the company, depreciation expense, interest expense, amortization and other benefits. Please inquiry with your New Horizons Business Opportunity Specialist for further explanation.
What information is available on a business for sale?
Although you will have a chance to meet with the seller, it is very common that you will not have access to information other than a one page sheet prior to contract. This is called a BLI (Business Listing Information) sheet. The BLI will include some pertinent information about a particular business for sale.
What happens when I deposit money in to an Escrow Account?
Once you have placed money in an escrow account out of your control, you will have the availability to review more detailed financial information along with other information on the business to determine its accuracy. Do not expect a seller to furnish tax returns or profit & loss statements prior to you putting money in an escrow account. Once you have signed a contract to purchase the business you can expect to see bank statements and customer/vendor lists.
Do I buy a business as a personal asset?
When purchasing a business it is advised that you set up your own corporation (our visa department will assist you with this). Your corporation then buys the assets, furniture, fixtures, equipment, leasehold improvements, fictitious name and goodwill of the seller’s corporation. This will help protect you against any judgments, liens and outstanding payables the seller may have incurred.
Your corporation is usually set up BEFORE a contract has been agreed upon by all parties. New Horizons Group will assist you in handling your acquisition of a business in this way.
Your success is our success, so please take a few minutes to read some of our Success Stories, and also do not forget about our FREE NO OBLIGATION Immigration to the USA Forums which are held throughout the year in England.