Create or buy a business for an E-2 visa?

To obtain an E2 visa and come to live in the United States, there are two options: 
– start a business 
– buy a company.

Very often, I am asked the question “Is it better to buy back an existing business or to create one? “. Of course, there is no single answer to this question..

An already established concept.

The first benefit I see is in the context of a buyout, you adhere to an already established concept, already known. So you do not have to convince, persuade the first customers of the interest of your concept. New ideas are clearly the ones that pay the most … when they walk. Do you have time to wait for your concept  “Take”, do you have sufficient cash reserves? And if you were wrong ??? Taking over a business may be less exciting than creating future Google or Starbucks, but it’s less risky. Taking over a business as part of a franchise can still secure you (provided you choose this franchise, see our article on the subject)

An established cash flow

As part of a buy-back, you can check the cash generated by the business through Profit & Loss, Tax Return, or simply bank statements. You should, of course, check these points carefully (and using a CPA) and make sure nothing is going to disrupt this profitability in the future, but you have encrypted elements that allow you to project yourself into the future with more of security. Coming to the United States as part of an E2 visa, and without any credit history, to be sure of future income is not a luxury.

A validated location.

Rental, Rental, Rental (location) .. This criterion is often said to be the most important factor in the success of a business. Yes, but here, as part of creation, there is always a doubt if the location corresponds to the concept. As part of recovery, we can see a “live” business in context. We’ll see soon if the customer is there or not. Attention neighborhoods, it evolves and a city like Miami is changing for example! In this case, we must also learn about the future.

Staff in place.

The value of a case is often proportional to the quality of its staff. At a redemption, you take back (or not) the staff of the case. They guarantee the transmission of know-how and customer relations. They know their job, no time to train them … on the contrary, often they are the ones who will train you. Be careful so that the transmission goes well in order to keep this asset. Florida is even more delicate in this area because the staff is very mobile, Florida is a state “at will”.

Established relationships

A company is also a set of professionals around you: accountant, suppliers, insurers … It is never easy to create these relationships and make the right choice, especially from abroad, although Pudd’nhead Wilson USA can help you in some areas. In an existing business, these relationships already exist. It’s up to you to see if you want to keep these contacts or if you can find better.

So, Redemption or Creation for my E2 visa?

I can not provide statistical comparisons of successes and failures in the context of recovery or start-ups in the United States via the E2 visa, but from my experience, I can say that the risk in the context of a controlled recovery is less.

I am aware that this question is controversial and I do not pretend to hold the ultimate truth, so feel free to give your opinion in the comments below!

Leave a Reply

Your email address will not be published.