1. The Residence Requirements of E1 and E-2 Visa Holders An E-1 visa is based on trade between Treaty countries and the U.S. and requires a substantial amount of trade to occur between the U.S. and the treaty country. This visa does not require hiring U.S. employees, although it is helpful, and the E-1 visa also does not require that a separate entity be set up in the U.S.  Also, an E-1 visa does not necessarily require a business plan. An E-2 visas allow applicants to live and work in the U.S. based on either starting or buying a U.S. business. The E-2 visa is based on Treaties between the U.S. and other countries, and requires the investor to invest a certain amount of money in a business, and to hire U.S. workers. One question that comes up with E visas is whether or not an applicant must reside in the U.S. if they have an E-1 or E-2 visa. The short answer is no, as the E-1 and E-2 visas do not have a residency requirement. There is no requirement that the E-1 trader visa or E-2 investor visa should live in the U.S. However, for the E-2 visa, there is a requirement that the investor directs and develops the enterprise. If residing abroad, you should be prepared to explain that you have met this requirement, and developing and directing the organization does not require full-time residency in the U.S.  2. The Activities an E Visa Holder Can Do While in the United States The E visa holder who is in the U.S. on an E-1 or E-2 visa can only work on the specific E activities for the E-1 or E-2 entity. The following activities are permitted while in the United States on an E-1 or E-2 visa, to the extent they do not rise to the level of “running a business”: Buying or selling stock; Buying a house; Buying investment properties; Renting a property, or renting out a property you own to others; Obtaining a mortgage; Obtaining a license to drive; Obtaining a social security number; Going to school; Earing passive income, such income from ads on a website or interest income; Taking unpaid leave; Obtaining health insurance; Buying another business, as long as you do not work at the business; File a tax return; Set up a business entity, as long as you do not work at the business; Hiring a nanny, home cleaner or personal assistant for personal services; Owning a car; Obtain life insurance; Contribute to a retirement plan, such as 401K. The following activities are not permitted while in the United States on an E-1 or E-2 visa: Vote in U.S.; Work at a place other than the E business; Accept certain U.S. Government benefits, such as Medicaid; Commit most crimes. 3. The E Visa Application for Start-Up Company E-1 visa allows nationals from certain countries to live and work in the United States to engage in international trade between the U.S. and their home country. In order to be eligible, the foreign national must come from a Treaty Country. As an example, if you have a start-up company in the U.S., and you are trading with your home country, such as selling products through your U.S. company to clients in your home country. You are running the U.S. company from abroad and you only started operating 3 months ago, but you are wondering whether you could apply for an E-1 visa? To qualify for an E-1 visa, you will need to meet the E-1 visa requirements. The start-up company can qualify for an E-1 visa, but there are few specific considerations you should keep in mind: 1) Is the E-1 trade substantial? First, you may have a hard time to show that the trade is substantial, if your company only recently started operating, such as above 3 months ago, and the trade volume is just picking up. For the E-1 trade to be substantial, there must be a continuous flow of trade items between the U.S. and the treaty country. This means that there must be numerous trade exchanges between the U.S. and the treaty country over time. The minimum period of time would be at least 6 months, but depending on the number of transactions with each client, and the number of clients you have. It is recommended that the business trades for a longer time before applying for the E-1 visa. Additionally, the minimum amount you may want to see is at least $250,000 in trade in those past 6 months, and you must be conducting business with numerous clients, preferably 5 or more, and there should be numerous transactions over the time with each client. For example, you could not just issue one invoice to each client, such trade would not be substantial. 2) Is your international trade principally with the U.S.? To qualify for an E-1 visa, you will also need to show that the majority of your international trade, more than 50%, is with United States. This may be a challenge for some start-ups company who focus on trading with any clients from any countries, to earn revenue or profits. For you to qualify for an E-1 visa, at least 50% of your international trade would have to be between the U.S. and your home country. This requirement needs to be met at the time when you apply for an E-1 visa, and even after the E-1 visa is granted. 3) E-1 visa or E-2 visa for a start-up company? If you are starting a start-up company in the United States, and you are deciding between the E-1 and the E-2 visa, the E-1 visa has some great advantages, especially for start-up company. For a start-up company in the United States, one advantage of the E-1 visa over the E-2 visa is that you do not need to make any investment in the United States, which is good for you if you own the start up company, and you want to save as much money as possible after starting the operations. Another advantage of the E-1 visa is that you do not need to hire any employees. This is not a requirement for E-1 visa, but it is required for E-2 visa. However, if the U.S. company does have some employees, that would be helpful for the E-1 visa approval. But for E-2 visa application, you do not need to show any trade history or trade revenue. This means that you can set up a company in the U.S., make an investment in the U.S, create a business plan outlining your hiring and revenue projections, and even before you start taking any revenue, but get an E-2 visa approval.

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