Immigrants have a strong representation in the US business world. In fact, according to a 2022 study from MIT — immigrants are approximately 80 percent more likely to start a business compared to their US-born counterparts. These findings challenge stereotypes, with immigrants clearly emerging as "job creators" rather than simply "job takers". If, like so many other immigrants to the USA, you also wish to start a business, the first step is making sure you are on the correct visa.
Unfortunately, there is no visa simply designated the "entrepreneur visa"; however, there are a number of visas that allow you to start a business and exercise your entrepreneurial spirit, even if the word entrepreneur isn't in the name.
Available visas in the US
If you are looking to start a business in the US, there are two types of visa options to look into:
Note that on O-1 and E-2 visas, you will need to return home after completing your business operation – but EB-1 and EB-5 visas are visas allowing permanent residency.
To help you out, here's our recommended visa service
There is also the International Entrepreneur Rule, which we will explore more below.
Extraordinary ability visas
If you have achieved great success in your line of work or have a million-dollar business idea and the track record to prove you could make it a success, you can apply for an EB-1 or O-1 visa. These types of visas are often referred to as "Einstein visa" or "rockstar visa" as they are often given to Nobel and Pulitzer Prize winners, famous actors and musicians, internationally successful businessmen – and so on.
EB-1 visa
In order to qualify for an EB-1 visa, you need to demonstrate extraordinary ability in science, arts, athletics, education – or business.
The United States Citizenship and Immigration Services (USCIS) uses a point system to evaluate extraordinary ability – and you need to earn at least three points to qualify for the visa. Here is a list of the "qualifying points" for the EB-1 visa:
- A recognized top-tier company has invested money in your business;
- Your startup has been accepted to a well-known incubator;
- Your business has been reviewed by a well-known US or international publication;
- You have been invited to speak at high-profile industry events or conferences;
- Your business has obtained a million- or billion-dollar valuation;
- You have received a prestigious business award or business grant;
- Your company owns a valuable copyright/patent.
As you can see from the above, the criteria for obtaining an EB-1 visa are very high. However, if your business is a leader in its field, this may be the most stable solution for obtaining permanent residency in the United States.
O-1 visa
O-1 visas are also reserved for people with exceptional abilities. However, as the O-1 is not an immigrant visa and is intended for a temporary stay, the bar for obtaining it is slightly lower.
To qualify for an O-1 visa, you also need to present proof of extraordinary ability, such as winning an award or receiving wide media coverage.
The key to this visa is that it requires clear evidence of exceptional accomplishments. Recipients can stay initially for up to three years, with the possibility of extension.
Investor visas
The biggest issue with extraordinary ability visas is that they are extremely difficult to qualify for. Plus, your approval is subjective and depends on how the USCIS officer evaluates your business success.
If you can't qualify for extraordinary ability visas, you can apply for one of the two investor visas: EB-5 or EB-2. In this case, you will be granted entry to the US in exchange for investing money into a business in the US and creating jobs.
EB-5 visa
The EB-5 Immigrant Investor Program is designed for foreign investors seeking US permanent residency. It requires a minimum investment in a new commercial enterprise that creates or preserves at least 10 full-time jobs for qualifying US workers. Typically, a minimum investment of $1.8 million, or $900,000 if the business is located in a targeted employment area (TEA), is necessary. This visa grants a conditional green card, and upon meeting job creation requirements, investors and their families can apply for permanent residency.
E-2 visa
The E-2 Treaty Investor Visa is for individuals from countries with treaties with the US. It allows investors to establish and operate a business in the US and requires a substantial investment, the amount of which is not fixed but should be sufficient to ensure the business's success. This visa is less demanding than the EB-5 visa as it requires less initial investment.
The International Entrepreneur Rule (IER)
The IER is a regulatory initiative that allows entrepreneurs to establish and grow their startups in the United States. Unlike specific visa programs, the IER functions as a parole-based system, providing temporary permission for entrepreneurs to work in the US. The key focus of the IER is on fostering innovation, economic growth, and job creation.
To qualify for the IER, entrepreneurs must meet specific criteria related to their startup ventures. This includes demonstrating a substantial and demonstrated potential for rapid business growth, job creation, and the ability to contribute to the US economy. Entrepreneurs applying for the IER need to showcase their commitment to their businesses, their potential for scaling up operations, and the positive impact their ventures can have on the US labor market.
Once approved under the IER, entrepreneurs are granted a period of temporary permission to work and develop their startups in the US. This period typically lasts for an initial term of up to five years. During this time, entrepreneurs have the opportunity to actively manage and expand their businesses, attracting investments, generating revenue, and creating employment opportunities.
It's crucial to note that the IER has undergone lots of changes since it was introduced in 2017, and its status may vary. Entrepreneurs considering this option should stay informed about any updates or modifications to the program. While the IER provides a valuable pathway for foreign entrepreneurs, seeking guidance from immigration experts can help navigate the nuances of the application process and ensure compliance with the program's requirements.
For more information on other types of visas to the US, refer to all visas offered by the US article in this guide.
We do our best to provide accurate and up to date information. However, if you have noticed any inaccuracies in this article, please let us know in the comments section below.
