What is the Difference Between E-2 and EB-5 Visas

Published On: Thursday, November 7, 2024

The E-2 and EB-5 visas offer distinct routes for investors and entrepreneurs aiming to establish a U.S. presence. Both allow you to live and work in the U.S. based on investing in an American business, yet they differ in requirements and benefits. The best option for you will depend on factors like the level of investment you’re ready to make, the degree of involvement you want in the business, and your long-term residency plans.

The E-2 visa is a non-immigrant visa designed for foreign entrepreneurs from certain treaty countries who wish to invest in and manage a U.S.-based business. The investment amount required is relatively lower than the EB-5, though it must still be significant enough to support the business’s operations. This visa is typically renewable indefinitely as long as the business is active, but it does not directly lead to a green card. E-2 visa holders must also remain involved in the daily operations of their business, meaning they must actively work and manage their enterprise to maintain their status.

On the other hand, the EB-5 visa is a direct path to permanent residency for investors and their families. It requires a higher financial commitment—generally, $800,000 in a Targeted Employment Area (TEA) or $1,050,000 outside of TEAs—and the creation of at least ten full-time jobs for U.S. workers within two years of the investment. The EB-5 visa allows for a more passive role in business operations, making it a suitable option for those who may not wish to work directly in the U.S. The significant advantage here is that EB-5 investors and their families obtain green cards, paving the way for long-term residency and eventually U.S. citizenship.

Choosing between these visas depends largely on your investment capacity, desire for active business involvement, and long-term residency goals. For more detailed information, visit Ashoori Law’s blog.

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