If you are thinking about getting an E2 visa, you already know that E2s are for those who are looking to or have already started a business in the United States. This requires that the business be ‘real’ and ‘operating’ and that you invest your money. A lot of potential applicants incorrectly assume that simply having funds in an American bank account will suffice as investment. This is not true. An investment means that the funds have been spent on the business, or will be spent once the application is approved.
What many clients also think when they hear about the E2 visa is, “what if I invest my money and my visa is rejected?” This is where an escrow agreement comes into play. An escrow agreement is designed to mitigate the risk to the investor, while still being sufficiently at risk for the application. What’s important is that the funds have left your control, are at risk, and your commitment is irrevocable. If the application is approved, the funds will then be taken out of escrow and used as the type of investment they were intended to be.
As an example, an escrow account could include a purchase agreement in which a lawyer includes the legal clause that the purchase is contingent on an E2 approval. The important thing to note here is that an E2 approval must be the only contingency that can exist in an escrow agreement. Escrow funds can be used for purchase/sale agreements, marketing and advertising contracts, leases, and other investments that are not working capital. To learn more about how you can mitigate your risk as an applicant for an E2 visa and take advantage of an escrow fund, please call Toronto lawyer Janice Warren!
In practice for 20 years, Janice P. Warren has concentrated her immigration law practice on helping Canadians move to the United States and finding ways to make their move as efficient and cost-effective as possible.