How Can Israelis Establish a Business in the United States, Obtain a Visa, and Bring Their Family or Key Managers from Israel to the USA?
One thing in 2024 remains the same as in 1924 – everyone wants to start a business in the land of unlimited opportunities, the United States of America. The great-grandfather may have wanted to open a modest clothing store in New York, while his descendants dream of launching a multi-million dollar startup in Los Angeles, but the essence of the dream remains the same. With all due respect to the European Union and the rise of China’s economy, few dream of opening a dog grooming salon in Brussels or having their boutique bakery’s clientele include Chinese movie stars. An investment visa for the USA is still the ticket to the land where streets are paved with gold.
The United States encourages foreign entrepreneurs and offers a wide range of investment routes for foreign citizens. Traders, company founders, or branch managers can obtain an investor visa for the USA, including accompanying visas for families (spouses and unmarried children under 21) and key managers from Israel. Those with significant investments can even obtain a Green Card.
What is the Recommended Investment Route for Me?
Many clients approach our immigration law firm feeling confused. There is a wide variety of investment visas available in the United States. For the average person wanting to open a business on Hollywood boulevard, it’s hard to understand the difference between E-1, E-2, and EB-5 visas.
As usual in such cases, everything depends on the specific circumstances and the client’s wishes—what investment amount is available, what type of business you want to establish or purchase, and what the visa’s purpose is: obtaining a Green Card, managing the company, accompanying family members, and additional employees. A US immigration lawyer helps both in submitting the visa application and in a consultation that ensures you will act to obtain the visa that suits your aspirations.
What are the Different Investment Routes to the United States?
Trade Treaty Visa (E-1)
The E1 visa is an established route has been open to “traders” from Israel for decades. This refers to company owners, representatives, or managers that maintain frequent and “significant” trade relations between the USA and Israel. Business managers must be present in the USA to supervise and develop these relations. The “trade” can include the physical transfer of goods as well as other financial transactions – banking, tourism, technological development, and more.
Visa holders must be Israeli citizens and must prove the skills necessary for managing relations that are difficult to find in the USA.
This is a non-immigrant visa, meaning that the duration of your stay in the USA with this visa will not count towards obtaining a Green Card or citizenship based on your stay.
The visa is valid for up to 52 months, with the possibility of unlimited renewals as long as the company is active and continues significant trade with Israel.
We should mention the difference between an L-1 visa for managers and specialized employees of companies with branches in the USA and an E-1 visa, which can be granted, among others, to managers and employees. There is no requirement for the US branch where the L-1 visa holder works to trade, work with, or be in any connection with Israel.
Investor Visa (E-2)
The E2 visa is for Israelis who want to invest in a new business in the USA or purchase an existing, active business. Unlike the E-1 visa, the business does not have to trade or cooperate with any entity in Israel. This is a relatively new visa for Israelis, based on an agreement signed with the USA in 2019 that allows Americans to receive an investor visa in Israel (B-5 visa).
The investor can obtain the visa, and Israeli managers and key employees will operate the business. However, the investment must contribute to the employment of several workers in the USA, and it is not possible to employ more Israelis with E-2 visas than local employees.
The investment amount is vaguely defined as “substantial.” On the one hand, immigration authorities open the door to exciting projects that do not require millions of dollars, but on the other hand, there is a minimum size for investment in terms of contribution to employment and the US economy.
As an essential condition for obtaining the visa, it must be proven that the business has a chance of success. This means documents establishing that the investor or manager has proven experience in building/managing businesses and skills in the field. Additionally, a detailed business plan for the next five years must be submitted, with details about expected income, business management, and development. Drafting the business plan according to the requirements of the immigration authorities and the economic reality on the ground is part of the services of a US immigration lawyer.
Finally, it must be shown that the investment and business activity have started even before applying for the visa – purchasing products, renting an office, etc.
This is a non-immigrant visa. It is valid for two years for Israelis and can be extended indefinitely as long as the company is active.
Green Card Based on Investment – EB-5 Visa
This investment route requires an investment of $1.8 million, or $900,000, in a high-unemployment area (the amount is subject to inflation) in a project that the investor manages themselves or as part of a larger project. The investment must create at least ten jobs in the USA for the next two years or for the long term. After the project exists for two years, and provided it does not go bankrupt, the investor receives a Green Card.
What Do All These Visas Have in Common?
First of all, the investor’s capital must be financial capital that is in their possession, not the result of a loan or mortgage that will have to be repaid. Secondly, although it is possible to invest in a wide range of companies and services, the investment must be active, requiring the investor to live in the USA to manage it. Investment in real estate, whether for rent or sale, will not allow for obtaining an investor visa.
All the outlined routes allow for obtaining accompanying visas for the investor’s family members – married spouses and unmarried children under 21. They can live, study, and work in the USA, even without the restrictions regarding the place of work that apply to the E-1 / E-2 visa holder.
It should be noted that children born in the USA receive American citizenship, even if their parents are not citizens. In addition, U.S. citizens can apply for and receive a Green Card for their parents at the age of 21.
Which Visa is Popular in Israel?
As mentioned above, it is better to choose an investment route according to the specific circumstances of each client. But we’ll reveal a professional secret – the E-2 visa is the visa that most Israelis seek. Yes, even though it is not possible to obtain a Green Card directly.
The “substantial” investment amount is still hundreds of thousands of dollars, not over a million, and therefore accessible to more applicants. Additionally, the visa still allows the investor, their family, and key employees to live and work in the USA and manage the business as long as it exists. The visa is accessible to the average person and provides a large portion of the rights granted by a Green Card.
Contact a USImmigration Specialist
As can be seen, even after a thorough explanation, it is not simple to understand which visa is suitable for your business. It is even more complicated to prepare a business plan with all the necessary documents in advance to ensure the visa application is approved—especially since some of the activity needs to start even before applying for the visa. A U.S. immigration lawyer will help you prepare the application correctly and ensure you can live, work, and develop a business in the USA.
