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NEW MEMBER - WE ARE CURRENTLY SELLING OUR HOME AND HOPE TO BUY AN AMERICAN BUSINESS AROUND TAMPA BAY. CAN ANYONE POINT US IN THE DIRECTION OF THE CORRECT FORMAT ( OR FORMS) IN WHICH TO APPLY FOR AN E2 VISA? WE ARE HOPING TO TRAVEL OUT TO THE US WHEN THE HOUSE SALE GOES THROUGH ON A 90 DAY VISA, IN ORDER TO LOCATE THE RIGHT BUSINESS, SCHOOLS AND ACCOMMODATION. CAN WE APPLY TO THE AMERICAN EMBASSY IN UK WHILE WE ARE OUT THERE, OR DO WE HAVE TO COME HOME FIRST? HOW MUCH INFORMATION DO THEY REQUIRE, AND IS IT BETTER (ALTHOUGH VERY EXPENSIVE) TO APPOINT AN IMMIGRATION SPECIALIST?
MANY THANKS
GLYNNIS
Firstly there is no such thing as a 90 day visa, there is a visa waiver that is supposedly for people to go on holiday. You can locate a business to buy on that but should not be doing much more. You can apply for E2 from the US but have to go home for the interview process and to wait while your visa is stamped. But the whole process anyway takes more than 90 days. the last thing I heard it was taking longer than that for the embassy to consider your application and make a decision so add on to that the time for you to find the business, get your application together and off to London etc etc. The last thing you want is for your visa waiver to expire while you are waiting as that could jeopardize your application as could buying and running the business before you get the visa I have to say.
In order to apply, locate the business, set up your E2 company ( decide whether you are going to go 50% each or one spouse own it outright so the other can apply for a work permit), the company then contracts to buy the business with a term in the contract contingent on grant of E2 visa and send the money to buy it into escrow to an escrow agent. The embassy will want to see a receipt from thsi agent as part of the application, they need to see your commitment ie put your money where your mouth is,. The investment in the business should be substantial ( around the $100,000 mark) it should be making enough to keep you ( $60,000 ish) should have at least one employee and preferably tax returns showing a profit.
The forms can be downloaded on the embassy website and you submit these with a copy of the contract, escrow agents receipt, curriculum vitae and a business plan along with photocopies of personal documents and the fee. I used an immigration specialist and it cost me around £2500 plus fees and disbursements eighteen months ago. You can do it yourself and I know someone who did successfully, but if you do something wrong, it can set you back months in a process which is long winder enough already.
Many thanks Julie, this is just the sort of practical advice we have been seeking! Is it the same to set up a business over there as it is here, i.e. stationery printed, bank account set up and Inland Revenue (or equivalent) notified? Or is there any other department we need to notify, or procedure?
Also, we have previously had a printing business over here for 5 years, which unfortunately did not go into profit, although we did employ 9 staff and had sales in excess of £300,000 (from scratch, not an existing business). Due to poor markets it was closed voluntarily last September and wouold obviously have to go on our CV. Would this jeopardise the application do you think? (We are anticipating buying a longstanding business with a good track record and at least 5 staff in place). We will have funds of $70,000 and intend to finance the rest through the bank. The business we are looking at will produce an owner benefit of at least $70,000.
Many thanks
Glynnis
OK, you set uo a Florida corporation make it Glysen Inc or LLC. You can do that on line. You then apply for a FEIN ( Federal tax identifier) for that company to the IRS. You cant open a bank account without it. I heard that they wont now let you apply for one from the UK as I did, another chicken and egg situation so you will need an agent to apply fo you. You purchase your business through this corporation and register the business name as a DBA ( doing business as) with the fictitious names site online. So you are Glysen INc doing business as THe Acme Printibg Business. You will need to produce company documents for Glysen Inc, the FEIN for Glysen Inc and the DBA paperwork for the Acme Printing Business to open a bank account which will then be able to accept checks written to Glysen or Acme. You then register for sales and use tax. Stationery is your last concern.
The embasssy dont like you to finance more than a percentahe, 25% I think was teh figire banded about when I was applying. And remember you need a nestegg to get you over cashflow. It costs an arm and a leg to set up here. Have you thought insurances. 5 staff means the dreaded workers compensation insurance. Hard to get, costs a fortune. Do a search on here as I am talked out on the subject. And liability on top. Buying vehicles. Car insurance without a driving record. No recourse to credit for at least a year as no credit rating. Deposits for everything, mobile phone, all your utlity bills. Living expenses until the money started to roll in, we had to fund at least one payroll because of the 30 day invoice payment thing, we are still always 30 days behind even now. Are you flying by the seat of your pants here? I would say you need another $50.000 for cashflow and that assumes you have somewhere to live.
CV - well saying you have run a business which failed wont exactly impress but if you dont put it on, what do you put on instead??
Also you seem to have already found a business to buy so why are you intending coming out to look for a business. Please dont even consider buying it before you get the visa as it could ruin your chances of getting the visa. Do what we all do and apply now from the UK and then fly out and close in three months or so.
OK, now I've got something I can get my teeth into - real info - thanks Julie, you're a treasure!
We have found a couple of businesses that interest us but don't know if they will be sold before we can wrap the house sale up.. hence the visit, but as you say it may be better to just pop over and suss them out and apply from back here rather than spend the dosh over there for 3 months.We'll certainly look into that option more.No worries about buying before the visa though, we've heard enough sad tales to warn us of that stupidity! Will put money into escrow and include 'subject to E2 visa' in purchase contract. Have read several of your other replies and understand this side of it.
Will look futher into car purchases and insurances too - thanks
Both businesses cite around $10,000 p.a. 'Officer Insurances' - assume this is for staff insurance? and is included in profit/loss (still gives good benefit plus profit to date)
It is a minefield and we need to do our sums carefully as you say, but can't see this opportunity coming around again so we're determined to at least have an adventure! If we can get the visa granted there should be an immediate income from the business according to the cashflow (which we will get checked out by a professional over there). Accommodation will be apartment for a short lease ($600 / mth) + utilites so this should be quite affordable.
Still doing the lottery so may find that extra $50000 yet!![8D]
Regards - Glynnis
JUST A WORD ON THE APARTMENT THAT FIGURE SEEMS VERY LOW MUST BE IN A NICE AREA ...... IF YOU BANK ON DOUBLE THAT I THINK IT WILL BE NEAR THE MARK...
THE UTILITES ARE NOT CHEAP EITHER... BEST OF LUCK....
Yes that will be work insurance of some sort. Be careful, not everyone pays workers comp though it is against the law not to and some people have had it for years from companies who wont take on any new business. Printing should be easier than cleaning though, cant believe that will be high risk.
chrizzy100
13-08-2004, 03:55
<blockquote id="quote" class="ffs">quote:Originally posted by jeffc
JUST A WORD ON THE APARTMENT THAT FIGURE SEEMS VERY LOW MUST BE IN A NICE AREA ...... IF YOU BANK ON DOUBLE THAT I THINK IT WILL BE NEAR THE MARK...
THE UTILITES ARE NOT CHEAP EITHER... BEST OF LUCK....
[/quote]
A lot of apartments in the Orlando area are around the $500+ price with utilites sometimes....we have been looking for our daughter...they look clean.....and OK....I'd say $800+ should get a nice one.......
Watch out with apartments as lots and lots of the cheaper ones are for low income families with a total income of less than around $27k per year.
They are looking to buy a business in Tampa Bay, not sure but would that not be dearer than Orlando? You dont mention kids, if you are bringing kids you must get somewhere to live in a decent area for the school. Thats a must.
I dont mean to be nasty or nosey but you sound to be underfunded. Florida on a shoe string would be a frightening place I have to say, we get through loads of money and with little access to credit, you really need substantial savings to feel comfortable. It was rather scary doing this with savings so I would think without a substantial nestegg to fall back on, it could be terrifying. We had to fund the first months payroll and all supplies well before we got paid for the work, plus we had to find $15,000 for workers comp, $2500 for liability and $2000 to insure a vehicle and that was before we took a penny from the business. Our savings dropped like a stone over the first few weeks. Think how much you need and then double it........
Thanks Jeff, Chrizzy + Blott,
I have been looking for 2 bed 2 bath apartments in Tampa Bay and have found many beautiful looking complexes in lovely surroundings with lakes, pools, club houses, fitness & business centres on-site. One typical site is www.rentnet.com/call/8663004774 (takes you direct to one of the pages I like) - they all seem to be offered for around the $600 to $700/mo mark which to us seems extremely cheap for all these facilities (some even offer free after school club).
If anyone knows any adverse info about these apartment complexes we would appreciate your input as we keep looking for a catch!!
Will be bringing 2 kids with us (6 & 11) so if anyone knows a good school district/nice place to intereact but not too noisy around Tampa, we would love to hear from you....
ciao
Glynnis
Thanks Julie,
Sent a reply but doesn't appear to have gone through so apologies if this comes up twice!
No offence taken - appreciate your honesty - we are looking into ways to increase our funding to at least give us a few months buffer.
Can you clarify for me please, was your business an existing one or a new one, as we were asuming if we bought an ongoing existing business there would be sufficient cashflow in the days after purchase to continue paying payroll, suppliers, insurance etc.? If we have to find a month's payroll from our own money I can see what you mean about underfunding!
Also, can the existing insurances in place continue, or would we have to start a new policy and pay a year up front?
Intend to take a salary monthly on taking up the reins so this should provide immediate working income - also considering business in hubby's name so I can apply for work permit (just in case)...
Mind you - I think it's scarier staying in Britain with kids who will probably never be able to afford their own home now, and will be hard pushed to even afford to go out once a week!
Not saying the grass is always greener, but as hubby is also a qualified joiner, at least we can hopefully help them buy something and do it up in the future...
Fingers crossed! (always the optimist)
Cheers
Glynnis
I dont know the Tampa area but if you have kids look for the school and then find an appartment near it. Price of the appartment must be secondary to the standard of the school. Educational standards in Florida are really low and kids from the UK are quite a lot ahead of their counterparts. A good school is really essential. Contact a realtor im Tampa who does rentals ( do a search) and ask for a list of schools and also ones he would consider good schools for your age group in the area then go round and visit them. I know of kids who have come here and loved it and others who just want to go home and it all comes down to where they ended up living and the schools they ended up going to and whether they ended up making friends. In particular, avoid schools that draw from predominantly hispanic areas, not racist but the kids tend to speak Spanish to each other outside class and that effectively excludes British kids from friendhsip groups. There are few Floridian kids who cannot make their way in Spanish but few English who can.
Thanks Julie,
Will certainly look into school situation v. carefully - thanks for all your help. Will let u know how we get on...(slowly by the sound of it! but Rome wasn't built in a day as they say...!)
Regards
Glynnis
Scotborder
16-08-2004, 02:14
Good luck Glynnis, let us know how you get on.
Maria
HI AGAIN FOLKS!
Just a quick note which I thought might help someone - we are still waiting to visit Florida to look for a suitable business (unofficially of course!!) but my brother has just had his visa application turned down - the reason they gave was that they were unconvinced of the viability of his business and value to US citizens as he had not supplied a Business Plan... they further suggested he may like to re-apply with a 5 year business plan which they could consider. My point is that, although this is the first thing I would have enclosed, I would probably have enclosed a 3 year Plan and it is interesting to note that they consider a 5 year Plan to be more suitable - this may just help someone with their application?
Best regards
Glynnis
hiGLYNNIS
is your brother going the E2 route
Was he buying something already trading or just going on plan?? If you buy something already established, the better that is doing the less business plan will be needed. If you are going on plan alone, yes of course they require the most detailed one you can supply. They have turned him down for a reasom. Either they did not think he would be employing US citizens or they did not think he had any chance of making enough to live on.
Yes he was going E2 and he was establishing a new business, he was also employing a US citizen but would 1 employee be enough?
Our plans to go over in October have suffered setback as I dislocated my kneecap last week and have been given 6 weeks in a splint!! Just as I thought we were getting somewhere!
How is anyone fairing over there with the hurricanes? I hope not too much damage - keep safe everyone...
Glynnis
I do know someone who got E2 with just one employee and he was a green card holder, but that was a while back,