E-2 or L-1?

[sdestinyp]

First of all, some background. I am a qualified UK accountant, 51 years old and have owned my own accountancy and tax practice for the past 28 years. This is a sole proprietorship, I work from home and I have no staff.

To get into Florida I have been considering the E-2 visa route and have been looking to buy a business, not necessarily anything to do with accountancy, using the criteria of a minimum of $100k for the purchase, $60k annual profit and a further $60k capital behind me for the first year.

The trouble has been finding a business that I would enjoy running and which would also allow me the luxury of no longer having to spend every hour that G-d sends sitting behind a desk punching numbers or serving behind a counter all day. I did approach a realtor/business broker in Kissimmee (Susan Barnes) a few months ago and she told me that the above criteria were not that important and I did not have to be overly active in my business, just manage it. She had obtained E-2 visas for such clients in the past.

Then I read that the L-1 route was a quicker and more efficient way to obtain that elusive Green Card. All I would have to do was buy a new company in Florida and a business, transfer myself over there and away I go.

But then I read a number of postings on this forum and now .....
I am more confused than I ever was before. And that is without considering all the doom and gloom expounded here.

Just to place the final piece into the jigsaw, I, a widower, would be the only person relocating, my grown up children would remain here.

If some kindly souls would be prepared to share their thoughts I would be really very grateful. Thank you in advance.

[agod]

Hi Simon

I really do sympaphise with you, as the more you read the posts, it seems like an impossible task, getting into the U.S., my wife has worked for the Bank of America for over 20 years, and we thought the L1 visa would be the route, tranfer of persons with managerial or other skills that the Americans do not have, into an existing U.S Business, and on top of that, I get to go free, on an L2.
No chance the Bank said that we would have to resign here and apply as a new recruit over there and lose all her seniority.

As I see it an L1 is for people with businesses over here that employ people, and you then go off and start another office in the States and you run that operation, keeping both ends running, and they check accounts every year, to make sure you are, the E2 is a business venture so you do have to make it a profitable operation, again they check, that the owner benifit, there talk for net profits, is what it is, and it could go on for years in fact you are always an alien, and green cards are quite rare, it is a nonsense that we invest in there land pay there taxes, generate a huge amount of cash, and on the whole do not bleed there services, and they make it so difficult for us, yet if you turn up at the Mexican border and work in the fields for 4 Dollars an hour its Green Card time, there was a post on here, where the owner of the company had an E2 visa, for a couple of years, and her Mexican workers all had green cards, it would be nice if they had a retirement visa, like Australia, where you can go at 55, and as long as you can proove an income or take in about $875,000 aussie dollars they are happy for you to go.

I am sure there are wiser people on this forum that will put you right, but I really do know how you feel, as we would like to do the same, but we are more and more turnig our thoughts to the Southern Hemisphere. Best of luck

Regards Alan

[Ray9]

First thing ..never take advice from a Realtor, She like most is thinking of only one thing and is certainly not your interests
and I guarantee she has never "obtained an E-2 for anybody"
an L visa is an Intra-company Transferees visa
i.e. you have a business in your home country which must continue
and you are going to work or start a new branch in the US..
It was originally designed for the likes of GM, microsoft etc to move there senior staff around the world.. but the wording of the act was such that it applied to small business as well..It is certainly not easy to get.

[esprit]

L1 is a better visa for those with kids who worry about getting the green card so the kids can stay here after 21 or older people who think they might wish to retire some time so need a green card so they dont have to keep trading their business ad infinitem. If you dont fit into those two categories, a 5 year E2 gives you a longer visa than L1 which is one 1-3 years. But no green card. L1 is not any way applicable to a sole proprietorship in the UK. You have to have staff and have to keep the UK end trading not just for the first year but through renewal and onwards. And the trade must be substantial. Then you have to show successful trade at the US end also.

The financial criteria given on these boards for E2 are those which will ensure a successful visa application with no problems. The actual wording is a "substantial " investment which is not specified. You can apply with a smaller investment or a smaller profit and some have done so and got the visa, it is just that the smaller the investment and owner benefit, the harder a job you are going to have to convince the embassy. So the chances of success become less certain. The whole process costs quite a lot in time, energy and fees and you want to give yourself as good a chance of success as possible.

Someone on these boards said that an accountancy qualification is not transferable without re-training so that may not be an option for you. However though the grass may seem greener at present, you may find that if you leave that desk for an overtly manual business such as many for sale here are, you will wonder what hit you and wish you were back behind that desk. I know my husband at a similar age to you did though he has lost two stone in weight in a year.
It is true that you dont have to work physically yourself, only manage. Problem one - getting good staff to actually do the job, regularly and reliably. Second problem making enough to live on if you are only creaming off the top as manager and not doing any work yourself. It is possible but you need a big business probably costing well in excess of your $100,000 not less.

Finally doom and gloom. No, just realism from those of us who made the step and took the rose coloured glasses off. There are many advantages in living here, you can buy a much nicer house for your money and the weather is great, but there is a lot more separating the UK and US than just the spelling of a few words, it is a total change of lifestyle and the culture shock runs deep for a while. And that is from someone who came here three of four times a year on holiday before moving!!! You also discover that not everything is better here and there are some things which bug you and others that really worry you. Problems with healthcare fall into that last category. A member of this forum who had been lving here for some while recently had to retutn home to the UK to live because of problems getting health insurance for a family member for example.

[floridapete]

"I did approach a realtor/business broker in Kissimmee (Susan Barnes) a few months ago and she told me that the above criteria were not that important and I did not have to be overly active in my business, just manage it. She had obtained E-2 visas for such clients in the past."


..........not with the longest of bargepoles !

[hurricanesarah]

What are the specific requirements of an L1 visa and what sort of money are we talking about for turnover on both sides? Does anyone have any information on this??

[esprit]

On the UK side, several employees not including the transferree and preferably not family, premises, substantial turnover ( undefined but they are getting stricter on this), able to continue for several years in the UK in the absence of the transferee without any substantial decrease in turnover. US side, premises. US corporation, easy tp get the visa initially but they are looking for turnover etc on renewal.

[John Boy]

<blockquote id="quote" class="ffs">quote:Originally posted by hurricanesarah
What are the specific requirements of an L1 visa and what sort of money are we talking about for turnover on both sides? Does anyone have any information on this??
[/quote]

Hi Simon

I had a UK company and opened up a subsidiary in Florida and applied for the L1 The cost came in, in excess of $6000 even though we were told that it would not be more than 4 so please be aware of that and from what you say there is no chance whatsoever of you getting an L1 Visa

The criteria for this is checked, rechecked and checked again

Firstly, your business has to be in operation for the minimum of 1 year but on the safe side change this to 2 years

Secondly, your staff level has to be over 5 people and most attorneys will not take it on if you have any less than 7.

Thirdly, Your UK business must be showing a good turnover with reasonable profit and you must show that the business is capable to be run effectively and continue while you are out of the UK

Fourthly, you will also need to show some financial commitment to the US company mine was the minimum at $75k and this had to be company money not a Directors Loan.

These are but a few, the list is substantial and add to that the Business Plan, Financial Projections, oh and don’t forget all the accountants fees (but then you know about that don’t you[msnwink]) for both UK and US companies Etc, Etc, Etc and you have just scratched the tip of the iceberg.

Then comes the interviews and the questions.

Sorry to have to reiterate it but L1 is not the path for you.

But good luck in the other visas

[esprit]

Yes but did you get it after all that??