What Business Types Qualify for E-2?

The type of business you choose affects your chances of E-2 visa approval. Below is a comparison of the most common business paths used by investors.

Buy a Franchise

Franchises are the most popular E-2 business choice. Proven model, established brand, faster revenue, and easier USCIS approval.

  • Typical Investment: $150K - $500K
  • Typical Approval Time: 5 - 7 months
  • Best For: First-time owners, risk-averse

Buy an Existing Business

Buying ongoing businesses offers immediate revenue and proven financials. Suitable for experienced entrepreneurs.

  • Typical Investment: $100K - $1M+
  • Typical Approval Time: 4 - 8 months
  • Best For: Entrepreneurs seeking quicker cash flow

Start from Scratch

Building your own business allows full control but requires detailed planning and potentially longer runway.

  • Typical Investment: $50K - $200K
  • Typical Approval Time: 6 - 8 months
  • Best For: Visionaries, tech startups, service businesses

Franchise vs. Buy vs. Build Comparison

FactorFranchiseBuy ExistingStart New
Time to Revenue3-6 monthsImmediate6-12 months
USCIS Approval OddsHighHighModerate
Typical Investment$150K-$500K$100K-$1M+$50K-$200K
Business Plan ComplexityModerateLowHigh
Risk LevelLowModerateHigh
Your Involvement RequiredHigh (mandatory training)ModerateVery High

Business Types Popular with E-2 Investors

Green Light Businesses

  • Franchises (Subway, Taco Bell, etc.)
  • Restaurants & Cafes
  • Retail Stores
  • Import/Export
  • Consulting Services
  • Cleaning Services
  • Real Estate Management
  • Tech/Software Companies
  • Transportation/Logistics

Yellow Light Businesses

  • Healthcare Services
  • Beauty/Salon Services
  • Educational Services
  • Entertainment/Events
  • Manufacturing
  • Trading Companies

Red Light Businesses

  • Financial Consulting/Investment Advisory
  • Law/Legal Services
  • Gambling/Adult Entertainment
  • Weapons/Ammunition
  • Highly speculative businesses

Understanding Marginality

USCIS requires your investment to be "substantial" and not "marginal." This means your investment must be meaningful relative to the total cost of the business. For example, investing $5K in a $500K business would be considered marginal, but $150K in the same business would not.

To avoid marginality issues, invest at least 10-15% of the business value in essential startup costs like equipment, inventory, and leases. Make sure your investment is actively used to fund operations.

Download E-2 Business Setup Roadmap