E-2 Visa Business Valuation: A Complete 2025 Guide for Treaty Investors
The E-2 Treaty Investor Visa opens doors for foreign entrepreneurs. It lets you live and work in the United States while running your business. But getting approval from U.S. Citizenship and Immigration Services (USCIS) takes more than just money.
You must prove three things. Your investment must be substantial. It must be at risk. And it must reflect fair market value.
That's where professional E-2 visa business valuation becomes critical. Transaction Capital LLC provides USCIS-compliant valuation reports. Our certified experts hold ABV®, ASA®, CVA®, and MRICS® credentials. We understand both immigration rules and financial standards.
This guide explains how business valuation supports your E-2 visa. You'll learn what the report includes. And you'll see why credible financial evidence improves your chances.
What Is the E-2 Treaty Investor Visa?
The E-2 visa helps foreign nationals from treaty countries. You can enter the U.S. to own, develop, or manage a real business.
To qualify, you need four things:
First, you must be a citizen of an E-2 treaty country. These countries have commerce agreements with the U.S.
Second, you must invest substantial capital. The investment must go into a legitimate business.
Third, you must own at least 50% of the company. Or you must show clear operational control.
Fourth, your business cannot be marginal. It must generate more than minimal income. It should create jobs or provide valuable services.
USCIS doesn't set a minimum investment amount. Instead, they use a proportionality test. They compare your investment to total business costs and industry standards.
Why E-2 Visa Business Valuation Is Critical for Approval
A professional valuation provides third-party proof. It shows your investment meets USCIS requirements. When done by credentialed firms like Transaction Capital LLC, it supports five key approval factors.
1. Proves Your Investment Is Substantial
USCIS needs to see meaningful capital deployment. Your funds must represent a significant portion of business costs.
A business valuation for E-2 visa applications establishes this ratio. It links your invested capital to the business's fair market value. This shows proportionality through clear numbers.
2. Confirms Fair Market Value
Immigration officers check if purchase prices are reasonable. They want to see arms-length transaction values.
Professional valuations prevent problems. They show you didn't overpay or make a token investment. Fair market value E-2 visa documentation establishes objective worth.
3. Documents Ownership and Control
The valuation report confirms your ownership structure. It verifies you own at least 50% of the business. It also shows your operational authority through equity analysis.
4. Demonstrates Non-Marginality
Business appraisal for immigration includes financial projections. These show the business can support you and your family. They prove the company will employ U.S. workers. And they show economic contribution.
This directly addresses non-marginality requirements. Many petitions fail because of this issue.
5. Prevents Request for Evidence (RFE)
Many E-2 visa cases face delays. USCIS often requests additional proof of investment value.
A professional USCIS business valuation prevents this problem. It includes detailed evidence from the start. This covers financial viability and proportionality analysis.
When You Need an E-2 Visa Investment Valuation
Certain situations require professional valuation services. These scenarios create extra scrutiny.
Buying Less Than 100% Ownership: When you purchase part of a business, you need clear documentation. The valuation shows proportional investment amounts.
Related-Party Transactions: Buying from family or friends raises red flags. You need independent verification. This proves arm's-length pricing.
New Startups or Pre-Revenue Companies: Companies without operating history need special analysis. Forward-looking financial modeling becomes essential.
Facing an RFE: If USCIS requests more evidence, you need immediate help. Professional valuation addresses their concerns.
Renewal Applications: Updated valuations show business growth. They demonstrate reinvestment and expanded economic contributions.
Complex Ownership Structures: International capital transfers need clear documentation. This links foreign funds to domestic business value.
Professional treaty investor business valuation ensures compliance. It satisfies both IRS and USCIS expectations.
What's in an E-2 Visa Valuation Report
Transaction Capital LLC customizes every report. Each one addresses your specific investment and business structure.
Company Overview
The report starts with basic information. This includes legal name, ownership structure, and registration location. It describes the business model, industry type, and revenue sources.
Valuation Purpose
The report clearly states its purpose. It supports your E-2 Treaty Investor Visa application. It's not for tax filing or audit purposes.
Scope and Methodology
This section outlines the analysis. It lists key assumptions and valuation standards. We follow USPAP, IVS, and AICPA SSVS-1 guidelines.
Economic and Industry Analysis
We analyze the economic environment. This includes sector growth trends and competitive position. We use reliable databases like IBISWorld, Capital IQ, and PitchBook.
Financial Analysis
We review your historical performance. This typically covers 3-5 years of data. We examine income statements, balance sheets, and cash flows.
We make adjustments for accuracy. This includes owner compensation, one-time expenses, and working capital. These adjustments ensure accurate financial representation.
Multiple Valuation Approaches
Professional E-2 visa compliance valuation uses three methods. This provides cross-verification and stronger credibility.
Comparison Table: E-2 Valuation Approaches Explained
| Valuation Approach | Best Used For | Key Methodology | USCIS Benefit |
|---|---|---|---|
| Income Approach (DCF) | Operating businesses with predictable cash flows | Projects future cash flows discounted to present value using WACC | Demonstrates non-marginality through financial projections |
| Market Approach | Businesses in established industries with comparable transactions | Applies valuation multiples from similar companies or transactions | Validates FMV through objective market benchmarks |
| Asset-Based Approach | Asset-heavy businesses, startups, or real estate ventures | Revalues tangible and intangible assets at current fair market value | Confirms minimum investment value for substantial capital test |
Income Approach (DCF): This method projects future cash flows. We calculate present value using risk-adjusted discount rates. This is called WACC (Weighted Average Cost of Capital). It reflects time value of money and business risk.
Market Approach: This benchmarks against comparable companies. We use public company data or private transactions. We adjust for company-specific factors like risk and growth.
Asset-Based Approach: This values tangible and intangible assets. It works well for asset-heavy operations or early-stage companies.
Value Conclusion
The report reconciles all three methods. It establishes Fair Market Value (FMV) for 100% equity. It calculates your proportional ownership value.
The report specifies your interest type. This includes controlling versus non-controlling positions. It also notes marketable versus non-marketable holdings.
Professional Certification
Every report gets independent review. A credentialed business valuer signs it. Our experts hold ABV®, ASA®, CVA®, and MRICS® designations. This ensures USCIS acceptance.
Professional Standards We Follow
Transaction Capital LLC follows globally recognized frameworks. These ensure audit-ready credibility.
Our valuations comply with four major standards:
USPAP: Uniform Standards of Professional Appraisal Practice. This establishes independence and competency requirements.
AICPA SSVS-1: Statement on Standards for Valuation Services. This ensures CPA-level rigor and documentation.
IVS: International Valuation Standards. This provides international recognition for global treaty investors.
NACVA and ASA Ethics: These govern independence and transparency. They ensure your valuation withstands USCIS scrutiny.
How Valuation Strengthens Three Critical USCIS Tests
Professional reports address three fundamental approval tests. Immigration officers apply these during petition review.
Substantial Investment Test
Your report shows invested capital represents significant business costs. It uses proportionality calculations. These compare your funds against fair market value. This quantitatively confirms substantiality.
Ownership and Control Test
The report proves your control position. It typically verifies 50% minimum ownership. Or it shows decision-making authority through management agreements.
Non-Marginality Test
Financial projections demonstrate business capacity. They show income beyond minimal living expenses. They prove you can support family dependents. They show U.S. employment creation. And they demonstrate long-term sustainability.
E-2 Visa Business Valuation Timeline
| Process Step | Activity Description | Typical Duration |
|---|---|---|
| Discovery Consultation | Discuss business operations and immigration goals | 10–15 minutes |
| Document Collection | Review financial statements and purchase agreements | 1–2 business days |
| Valuation Analysis | Apply Income, Market, and Asset-based approaches | 2–3 business days |
| Draft Report Review | Deliver preliminary report for attorney review | 1–2 business days |
| Final Delivery | Issue certified, signed report after payment | Within 24 hours |
Common E-2 Visa Valuation Scenarios
Buying a Majority Interest
Purchasing 60% of an existing business needs documentation. The valuation proves your purchase price reflects fair market value. It shows your investment matches your ownership percentage.
Related-Party Transactions
Buying from family creates USCIS suspicion. Independent third-party verification is essential. This establishes arm's-length pricing. It eliminates concerns about inflated values.
Startup and Franchise Ventures
New businesses lack historical data. The valuation uses DCF forecasts and market benchmarks. It analyzes capital expenditure. This demonstrates legitimate value and non-marginality.
Renewal and Extension Applications
E-2 renewals benefit from updated valuations. These show enterprise value growth. They document employment expansion and reinvestment. This proves continued economic contribution.
Essential Documents for Your Valuation
Organized documents speed up the process. Gather these materials before starting:
- Certificate of incorporation or LLC agreement
- Purchase agreement or franchise contract
- Bank statements showing capital deployment
- Business licenses and permits
- Commercial lease agreements
- Historical financial statements
- Year-to-date performance data
- Five-year business plan
- Hiring projections and staffing plans
- Asset acquisition lists
- Equipment purchase documentation
- Supplier and customer contracts
- Revenue documentation
- Payroll summaries
- Organizational charts
Complete documentation helps us deliver faster. It also improves analytical precision.
Why Choose Transaction Capital LLC
Transaction Capital LLC is a Delaware-registered valuation firm. We specialize in certified business appraisals for immigration. Our services are trusted by immigration attorneys and international investors.
What Makes Us Different
Credentialed Experts: Every report gets certified by professionals. They hold ABV®, ASA®, CVA®, and MRICS® designations.
Global Experience: We've completed valuations across all 50 states. We also serve Europe, Middle East, and Asia-Pacific regions.
Immigration-Optimized Reports: Our documentation works seamlessly with attorney submissions. The language is clear for USCIS officers.
Regulatory Compliance: We follow IRS safe harbor standards. We comply with AICPA, IVS, and USPAP requirements.
Audit-Ready Quality: Law firms, CPA auditors, and USCIS officers accept our reports.
Our Commitment
We provide accurate, defensible, and affordable valuation reports. Our goal is to help you secure U.S. immigration approval with confidence. We bring 15+ years of experience and 2,500+ completed assignments across 35+ industries.
