Does E2 Extenstion based on ongoing Profit?

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eposting

Registered Users (C)
Question to all
Once E2 Visa is approved, then do I have to maintain same level of profit of my self-owned company to get E2 visa extended?, and if for some reasons business’s profit drops then what will be the chances of extension. Because to my understanding authorities are asking you to submit the tax returns/pay roll/etc. every time you ask for extension.
In case the business does not meet the requirement that it has to maintain certain level of profit (to support my family as well as employee) then what will be the status of that person he has to leave and sell his business immediately? and if he does not find a good buyer mean he has to sell in loss because he is not allowed to live in USA.


Thank you
 
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During the time of your initial visa validity nobody is going to check on you how you are doing. However, once you file for an extension you need to show that the business has grown and employs US citizens of GC holders. The whole purpose of E2 is to stimulate job creation. If you do not manage to get to that point you are pretty much out of luck and will probably be denied an extension. Unless you can convince them otherwise, maybe by means of a new investment or a change in business strategy explained in a business plan. I don't think being profitable is the most important. as long as you have cash to implement your business plan and hire additional employees beyond yourself and your family.
An other alternative is to start all over, sell your business and do a new investment.
 
Thank you for the reply. If the things go well then there is nothing to be worried about. As no one can say for sure and guarantee that every business would generate steady income for the years to come sometime it goes to south as well.
Visa officer (at the time of approval) makes sure that the net income should not be less than the average income of the state or city where the business exists (normally $40,000 - $50,000).
My point here is that lets assume that if the business does not meet the same target at the time of renewal then can the officer deny the extension.
Taking one time pain to find such a business for approval is okay but afterward having fear of denial (extension) would not let you sleep because your money is already invested. Someone can eat less but can not give-up for ever becaouse migration is not easy part of the life.
 
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A good lawyer with experience in business and immigration should be able to help you with this issue. Instead of just showing last year's tax return, you can also show multiple year returns to prove the business has had good years and maybe not so good years. Still, being able to show you have (had) US citizens on your payroll will make the whole extension process a lot easier. Making a profit is not the most important thing for a start up company. For example, in the last four years I have never paid any tax besides payroll taxes since I had plenty of deductions and expenses to get the whole thing started. For now I suggest you concentrate on what your good at (running a business) and focus on the extension a year before it is due. Your lawyer might have some suggestions as well to plan for the extension.
 
I've been told that they are looking for activity. So if you are loosing money, it is not bad. As long as your company is spending and you are here to build a company. Some companies don't make any money at all for years and then make a huge sell at once....but they spend money on office rent, phones, payroll...... so it is an active business.
 
Thank you billy_bob and lenick,
You make me feel that I can breath again.

I started up a restaurant with E2 visa in 2006 and my visa will be expired in 2008. The business is still active but I am afraid that I cannot generate profit by the end of the year since I had a lot of expenses to improve the property. However, I do not hire any US citizens yet, still plan to. I am worry that I will be denied for my extension if I could not make a profit.

Since you mention that generate jobs and active business are more important, I will be able to sleep again. By the way, how many employees do you have? and what do you say when you file for an extension when you show your lost?

Thank you
 
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