Perhaps the most common area of confusion is establishing what can be counted the total amount invested. Many clients try to include expenses such as flights and travel expenses to the US to either set up or buy the business. Accommodation, car rentals, hotel bills and so forth. The truth is that none of these expenses can be taken into consideration for E2 investment purposes although they may be taken into account for accounting purposes in terms of Tax records.

The best way to approach this is area is to use this analogy. If a house is for sale at $300,000.00 and the closing costs are $10.000.00. The total cost of the house is $310,000.00. It’s $310,000.00 to the person who lives in the town where the property is for sale just the same as it $310,000 for the person who had to fly in from Australia.

If a bakery ‘A’ business to purchase was $300,000.00 and the closing costs are $10,000.00 then the total purchase price is $310,000.00.

If an alien wished to set up a bakery ‘B’ business similar to bakery ‘A’ then only those costs that would have been incurred to build bakery ‘A’ could be claimed by bakery ‘B’. in other words only the actual materials and labor costs could be claimed. The alien could not include the cost of his eight flights from Australia and other expenses incurred into his E2 Statement of Set up Costs. This could artificially add another $50,000.00 to the E2 Statement of Set up Costs. If these additional costs were added these would be struck down by the E2 Embassy official and it could result in a denial of the overall E2 application.

It is very important that you are clear on this point as it will save you a great deal of argument and frustration when your immigration attorney has to strike these non-qualifying investments from your statement of costs.

E2 Visa - Buying A Business