A few weeks ago, a prospective client met with Marco for an initial consultation. At first glance, the case looked familiar: an E-2 investor visa holder approved a few years earlier, now facing serious issues at the renewal stage. As the conversation unfolded, however, it became clear that this situation highlighted a critical compliance lesson for E-2 treaty investors.
The investor had received E-2 visa approval in 2023 based on a digital marketing and business consulting company serving small and mid-sized businesses. After entering the United States, they actively operated the company and continued evaluating market trends and unmet demand.
During that process, the investor identified an opportunity in a brick-and-mortar specialty food retail business. The concept was supported by local demand and required the investor’s direct, day-to-day involvement in operations, staffing, and vendor relationships. While commercially viable, the opportunity existed in a completely different industry from the business that had been approved under the E-2 visa.
Before proceeding, the investor sought legal advice to better understand whether this new venture could be pursued under the existing E-2 structure. They were advised that no immediate action was required and that the new business activity could be disclosed later, at the time of the E-2 visa renewal, as an expansion of the existing company. When the investor raised concerns about no longer having time to operate the original business, they were told this would not be an issue because multiple activities could exist under the same LLC.
Relying on that guidance, the investor moved forward.
When the E-2 renewal petition was filed, it included an updated business plan describing the retail operations. USCIS responded with a Request for Evidence. The officer stated that operating the retail business constituted a material change to the E-2 enterprise and that an amendment should have been filed before engaging in the new activity. The notice further raised concerns that the investor may have violated the terms of their E-2 employment authorization by operating a business that was not approved under the original petition.
It is true that the business plan must be updated to explain how the original enterprise evolved over time and how current operations came to exist. However, updating a business plan does not, by itself, resolve compliance issues. When a business change rises to the level of a material change, the investor, together with qualified immigration counsel, must take additional steps required under E-2 regulations. A revised narrative can explain what happened, but it cannot replace the procedural requirements that must be satisfied before new business activity begins.
By the time the investor met with Marco, the issue was no longer theoretical. The question was urgent: how do you fix a material change violation after it has already occurred?
The short answer is that material changes cannot be cured retroactively. USCIS does not treat the E-2 renewal process as an opportunity to correct past noncompliance. Officers evaluate whether the investor has maintained continuous compliance throughout the visa period, not just whether the business qualifies going forward. Moving from a digital consulting business to a retail operation is not a natural expansion. It is a fundamentally different enterprise, with distinct operational, regulatory, and economic considerations.
This case illustrates a common and dangerous misconception among E-2 investors: that new business activities can always be folded into an existing E-2 structure later, as long as they are disclosed at renewal. Growth itself is not the problem. Timing is. When a business change alters the nature of the approved enterprise, an E-2 amendment is often required before the activity begins.
Situations like this also highlight the importance of understanding when immigration-specific guidance is needed. The E-2 visa is highly technical, and even well-intentioned advice can fall short if it does not account for how USCIS evaluates material changes and compliance. This is why, when our clients need immigration advice, we encourage them to seek independent guidance from experienced immigration attorneys. We do not receive compensation or referral fees of any kind for doing so. Likewise, when attorneys recommend our business planning work, it is because they believe it helps present clearer, stronger E-2 cases for their clients. That professional judgment, exercised independently on both sides, is what ultimately serves investors best.
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The information provided in this blog is intended solely for informational purposes. While we strive to offer accurate and up-to-date content, it should not be considered legal advice. Immigration laws and regulations are subject to change, and individual circumstances can vary widely. For personalized guidance and legal advice regarding your specific immigration situation, we strongly recommend consulting with a qualified immigration attorney who can provide you with tailored assistance and ensure compliance with current laws and regulations.
Visa Business Plans is led by Marco Scanu, a certified coach from the University of Miami with a globally-based practice coaching Fortune 1000 company executives, entrepreneurs, as well as professionals in four different continents. Mr. Scanu advises clients on turnaround strategies and crisis management.
Mr. Scanu received a bachelor’s degree in Business Administration (Cum Laude) from the University of Florida and an MBA in Management from Bocconi University in Milan, Italy. Mr. Scanu was also a Visiting Scholar at Michigan State University under the prestigious H. Humphrey Fellowship (Fulbright program) with a focus on Entrepreneurship, Venture Capital, and high-growth enterprises.
At present, Mr. Scanu is the managing partner and CEO at Visa Business Plans, a Miami-based boutique consulting firm providing attorneys and investors with business planning services in the areas of U.S. and Canadian immigration, SBA loans, and others.
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