Published: March 16, 2026
Are you looking to live and work in the United States by making a substantial investment in a business? The E-2 Treaty Investor Visa allows businesspeople from treaty countries to work in the US by investing in a qualifying US business that they actively direct and operate.
Since E-2 visas don’t require a minimum investment, many smaller investors have a chance to establish a business in the US. However, eligibility for an E-2 visa requires meeting six requirements, one of which is the marginality test.
The primary objective of the marginality standard is to ensure that the business is a real, active company, not merely a structure created to secure a US visa. If you’re an entrepreneur seeking to apply for an E- visa, here are some important things you need to know about the marginality requirement.
Overview of the E-2 Visa Marginality Test
The enterprise must not be marginal to qualify for an E-2 visa. A marginal business is one that generates only enough profit to cover the owner’s basic cost of living, with no capacity for growth or hiring.
In order to pass the E-2 visa marginality test, you must demonstrate present or future potential to generate significant revenue or create US jobs within five years from the date your E-2 visa status begins. The income must support beyond the needs of the investor and their immediate family.
Key Factors Considered to Meet the Marginality Test
Immigration authorities assess the marginality standard by looking at whether your business has a realistic plan for growth and hiring. Below are some of the factors they evaluate in determining whether you meet the E-2 visa marginality test.
- Detailed revenue projections demonstrating the business’s capacity to generate income substantially beyond the investor and family’s living expenses
- Potential to hire full-time U.S. employees (citizens, permanent residents, or authorized workers) via payroll documentation and tax filings
- Proof of a viable business operation, such as industry research, signed customer or supplier agreements, a signed lease, and evidence of substantial working capital relative to the business type and needs, to demonstrate that it’s capable of operating successfully in its first few months.
Secure Your E-2 Visa With ALG Lawyers
The process for securing an E-2 visa can be complex and requires a significant amount of paperwork. Working with a credible Los Angeles immigration lawyer can help take the guesswork out of the application and increase your chance of E-2 visa approval.
Our team at ALG Lawyers is skilled at navigating the complexities of the visa process and gathering the appropriate evidence to ensure compliance with E-2 visa requirements. Connect with our firm now to start a case consultation with our legal team.
FAQs on What You Need to Know About the Marginality Test for E-2 Visas
Does the marginality test require the business to be profitable immediately?
The business doesn’t have to be profitable immediately to satisfy the marginality standard. Immigration authorities recognize that new enterprises often experience a delay in revenue generation during the initial phases. However, the business plan must have realistic projections for profitability, revenue growth, and job creation.
How many jobs are needed to pass the E-2 visa marginality test?
There’s no fixed number of jobs needed to pass the E-2 visa marginality test. Although more jobs strengthen the E-2 visa application, the focus is on demonstrating economic impact and potential to hire, rather than meeting a specific quota.
Can a small business pass the E-2 visa marginality test?
Size doesn’t automatically disqualify a business from meeting the E-2 visa marginality standard. A small business can pass it, provided that it demonstrates growth potential, generates more than minimal income for the investor, and creates US jobs, typically within five years.
(Please note that this article does not create an Attorney-Client relationship between our law firm and the reader and is provided for informational purposes only. Information in this article does not apply to all readers. Readers should not rely on this information as legal advice and should seek specific counsel from a qualified attorney based on their individual circumstances. Thank you.)