US entrepreneur visa options for non-citizens

With a world-leading economy, strong currency, and a stable legal system, the United States is among the most attractive places for global entrepreneurs to start a business. They also play an important role in the US economy, providing millions of jobs and generating billions in revenue: In 2019, immigrant entrepreneurs made up 21.7% of all business owners in the US, despite comprising just over 13.6% of the population.¹

If you have legal resident status (i.e., a green card), the process of creating a startup company is essentially the same as that of any other US citizen. However, if you aren't currently a US resident, you will typically need a visa before you can open a business. While there is no specific "startup visa," there are a wide variety of US immigration visas issued for different personal and different work situations. This article will provide an overview of the main visa options available, but if you're not sure which is best for your situation, consider working with an immigration attorney.

A comparison of US entrepreneur visas

1. The E-2 Visa

This is a nonimmigrant visa that allows nationals of countries with qualifying treaties with the US to invest in and operate a business in the United States. It's designed for investors who want to develop and direct the operations of an enterprise in which they have invested a substantial amount of capital.

To qualify for an E-2 visa, you must:

• Be a national of a country with a qualifying treaty with the US

• Have invested or be in the process of investing a substantial amount of capital in a US business

• Seek to enter the US solely to develop and direct the investment enterprise

• Show at least 50% ownership of the enterprise or possess operational control

Advantages:

• Can be renewed indefinitely as long as the business remains viable

• Allows spouse and unmarried children under 21 to accompany the investor

• Spouse can apply for work authorization

• No set minimum investment amount (investments as low as $50,000 have qualified)

Disadvantages:

• Does not provide a direct path to permanent residency (green card)

• You cannot apply for a green card while on E-2 status

How to apply:

Within the US:

1. File Form I-129 with USCIS (US Citizenship and Immigration Services)

2. Gather all required documentation (business plan, financial documents, proof of investment, etc.)

3. Consider premium processing for faster decision

Outside the US (Consular Processing):

1. Complete and file Form DS-160 and DS-156E

2. Schedule and attend a visa interview at a US Embassy or consulate

3. Present required documentation and discuss business/investment plans

The E-2 visa application process can take anywhere from two weeks to five months, depending on the consulate and whether premium processing is used.

2. The EB-5 Visa

This immigrant visa program allows foreign investors to obtain permanent residency (green card status) in the United States by making a significant capital investment in a new commercial enterprise that creates jobs for US workers.

To qualify for an EB-5 visa, you must:

• Invest at least $1,050,000 in a new commercial enterprise, or $800,000 if investing in a targeted employment area (TEA) or qualifying infrastructure project

• Create or preserve at least ten full-time jobs for US workers within two years

• Invest in a for-profit business established after November 29, 1990, or in certain older businesses that are restructured or expanded

• Prove that the investment funds were obtained lawfully

Advantages:

• Provides a direct path to permanent residency (green card) for the investor, spouse, and unmarried children under 21

• No sponsorship required from an employer or family member

• Freedom to live and work anywhere in the United States

• Access to US education and healthcare systems

• Potential path to US citizenship after five years of permanent residency

Disadvantages:

• High investment amount required

• Risk of losing the investment if the business fails

• Complex application process and lengthy processing times

• Conditional permanent residency for the first two years, requiring additional filing to remove conditions

How to apply:

1. Choose an investment project (direct investment or through a regional center)

2. Make the required investment

3. File Form I-526 (Immigrant Petition by Alien Entrepreneur) with USCIS

4. If approved, apply for an immigrant visa through consular processing (if outside the US) or file Form I-485 for adjustment of status (if in the US)

5. After two years of conditional permanent residency, file Form I-829 to remove conditions and obtain full permanent residency

The total cost for an EB-5 visa application, excluding the investment amount, ranges from $21,130 to $22,225, depending on whether the applicant is filing from within or outside the US.

3. The L-1 Visa

This is a nonimmigrant visa that allows multinational companies to transfer certain employees from their foreign offices to work in the United States temporarily. There are two subcategories: L-1A for executives and managers and L-1B for employees with specialized knowledge.

To qualify for an L-1 visa, the employee and employer must meet specific requirements:

• The employee must have worked for the foreign company for at least one continuous year within the previous three years, and must be transferring to an executive or managerial position (for L-1A), or possess specialized knowledge of the company's products, processes, or procedures (for L-1B).

• The employer must have a qualifying relationship with a foreign company (parent, subsidiary, branch, or affiliate); and must be doing business as an employer in the US and at least one other country.

Advantages:

• No annual cap or lottery system

• Allows for dual intent (can pursue permanent residency)

• Spouses (L-2 visa holders) can work in the US without restrictions

• Can be used to establish new offices in the US

• Relatively quick processing compared to other work visa categories

Disadvantages:

• Limited to working for the sponsoring employer

• Initial stay is up to 3 years, with extensions contingent on the relationship between foreign and US offices

• Maximum stay of 7 years for L-1A and 5 years for L-1B

How to apply:

• Employer files Form I-129 (Petition for a Nonimmigrant Worker) with USCIS

• If approved, employee applies for the L-1 visa at a US embassy or consulate (if outside the US) or files for a change of status (if already in the US)

• Attend a visa interview (if applying from outside the US)

• For companies with established US operations, a blanket L petition can be filed to streamline the process for future transfers

The processing time for an L-1 visa can vary, typically taking around six months for the I-129 petition. However, premium processing is available for faster turnaround.

4. The EB-1C Visa

This is an immigrant visa classification designed for multinational managers and executives. It allows a foreign company to transfer a manager or executive to a related US company to play a central and active role in enhancing US business operations.

To qualify for an EB-1C visa, the employee and employer must meet specific requirements:

• The employee must have been employed continuously by the foreign company for at least one year within the previous three years, must be in a managerial or executive position, and have a job offer from the US company to work in a similar capacity.

• The employer must be a US company that has been doing business for at least one year, and there must be a qualifying relationship between the foreign company and the US company (parent, subsidiary, branch, or affiliate).

Advantages:

• No Labor Certification Required: Unlike many employment-based visas, the EB-1C does not require a labor certification, which simplifies and expedites the application process.

• Direct Path to Permanent Residency: Successful applicants and their immediate family members (spouse and unmarried children under 21) can obtain a green card.

• Work Authorization for Spouses: Spouses are eligible for work authorization in the US.

• Travel Flexibility: Green card holders can travel in and out of the US without needing additional permissions.

Disadvantages:

• Strict Requirements: The eligibility criteria are stringent, particularly regarding the managerial or executive capacity and the qualifying relationship between companies.

• No Premium Processing: Unlike some other visa categories, premium processing is not available for EB-1C applications, potentially leading to longer processing times.

How to apply:

1. Secure a Job Offer: The US employer must provide a job offer to the foreign manager or executive.

2. File Form I-140: The US employer (petitioner) files Form I-140 (Immigrant Petition for Alien Worker) with USCIS.

3. Submit Required Documentation: Include evidence of the qualifying relationship between companies, proof of the employee's managerial or executive role, and other relevant documents.

4. Consular Processing or Adjustment of Status: If the employee is outside the US, they will go through consular processing. If already in the US, they can file for adjustment of status to become a permanent resident.

The processing time for an EB-1C visa can vary, typically taking around six months for the I-140 petition, with additional time for visa number availability and consular processing or adjustment of status.

5. The International Entrepreneur Rule

This is a federal regulation that allows foreign entrepreneurs to stay in the United States temporarily to start and grow new companies. It's designed to attract and retain innovative entrepreneurs who can provide significant public benefit through rapid business growth and job creation.

To qualify, an entrepreneur must:

• Have a significant ownership stake (at least 10% initially) in a US startup formed within the past five years

• Play an active and central role in the company's operations

• Demonstrate the startup's substantial potential for rapid growth and job creation, evidenced by:

  • At least $264,147 in qualified investments from US investors with established track records, or

  • At least $105,659 in qualified government grants or awards, or

  • Other compelling evidence of potential

Advantages:

• Allows up to three entrepreneurs per startup to stay in the US for an initial period of up to 2.5 years

• Possibility of extension for an additional 2.5 years (total of 5 years)

• Spouses can apply for work authorization

• No need for congressional approval, unlike a new visa category

• Estimated to create 135,000-300,000 jobs over ten years

Disadvantages:

• Not a permanent solution; maximum stay of 5 years

• Entrepreneurs can only work for their startup business

• No direct path to permanent residency

How to apply:

1. File Form I-941 (Application for Entrepreneur Parole) with USCIS

2. Provide evidence of qualifying investment, grants, or alternative evidence of growth potential

3. If approved, obtain a "boarding foil" from a US consulate for entry into the US

4. For extension (re-parole), demonstrate continued eligibility and growth metrics

The processing time for International Entrepreneur Rule applications can vary.

Taking steps to help protect your US-based business and assets

As in any other country, you can expect to pay business and personal income tax – and in fact, many of the steps involved in opening a US-based business have to do with making the relevant tax authorities aware of your operations. US tax laws can be hard to navigate because you may be subject to taxes at the federal, state, and local (i.e., city or county) level, so careful planning is needed to minimize potential tax losses. Also, rules for multinational taxpayers are even more complex, and you should be prepared to seek out appropriate legal, tax, and accounting advice for your specific business and the other jurisdictions in which you have business interests, income, or assets.

Still, the US can be a dynamic, attractive place to build a business and personal and family wealth. But if your plans eventually include passing on assets to family members in the US, it also pays to think about estate planning – and in particular, taking steps to deal with the estate tax disparity for foreign nationals: US residents (as of 2024) enjoy a significant $13,610,000 exemption on estate taxes and lifetime gifts. However, the nonresident exemption is limited to just $60,000, so any significant US assets may be subject to estate taxes of up to 40% as they are passed on to the next generation.

Life insurance for foreign nationals can help minimize these tax consequences, because death benefit payments are generally exempt from the federal estate tax. That also means that money is transferred to beneficiaries without going through the probate process, which can be time-consuming for a large estate. These features could make life insurance an attractive wealth preservation tool for many foreign nationals with US-based assets. Permanent universal or whole life insurance that builds cash value can also provide a number of other advantages when it comes to tax and estate tax planning and preserving family wealth*:

Covering potential estate taxes with life insurance

The US government imposes estate taxes on US-situated assets for nonresidents. Still, US-denominated life insurance can provide the liquidity needed to cover real estate tax liabilities or other potential estate taxes without having to sell all or a portion of these holdings, helping preserve value for heirs.

Portfolio diversification and risk mitigation

Permanent, whole life insurance builds cash value at a guaranteed rate and is among the more conservative financial products available. A policy can build US-denominated cash value* that can be accessed while the policyholder is still alive, acting as a potentially effective hedge against economic downturns in one's home country, fluctuating exchange rates, and other forms of geopolitical risk.

Asset protection

Life insurance policies are generally protected from creditors and bankruptcy. This can provide an additional layer of protection for foreign nationals' assets.