Uploaded on Dec 19, 2025
Learn how E-2 visa holders are taxed in the U.S., including tax residency, business taxes, foreign income reporting, and IRS compliance rules.
Taxation for E-2 Treaty Investor Visa Holders
Taxation for E-2 Treaty Investor Visa Holders
https://e2visa.ca/
Taxation for E-2 Treaty Investor Visa Holders
E-2 Treaty Investor visa holders operating a business in the United States must comply with U.S.
tax laws, which are based on tax residency status—not visa type. Many E-2 entrepreneurs become
U.S. tax residents after meeting the Substantial Presence Test, often within one or two years of
arrival.
Once classified as U.S. tax residents, E-2 visa holders are required to report worldwide income,
including U.S. business profits, salaries, distributions, and foreign investment income. Nonresidents,
by contrast, are taxed only on U.S.-source income and file Form 1040-NR.
Read more..
https://e2visa.ca/
Taxation of an E-2 business
The taxation of an E-2 business depends on its legal structure. Single-member LLCs, partnerships, S
corporations, and C corporations each carry different income, payroll, and self-employment tax consequences.
E-2 owners actively working in the business must receive a reasonable salary, and payroll taxes generally
apply.
Most E-2 visa holders also pay Social Security and Medicare taxes, unless exempt under a U.S. Totalization
Agreement. In addition, many investors have foreign reporting obligations, such as FBAR and FATCA filings,
which carry significant penalties if overlooked.
State tax rules vary by location, making entity selection and tax planning especially important. Working with an
E2 Visa CPA experienced in E-2 visa taxation helps ensure compliance, reduce tax exposure, and support
successful visa renewals.
https://e2visa.ca/
Partner with a Houston E-2 CPA
The IRS and USCIS communicate. A mistake on your US Tax Preparation can be seen as an
immigration violation (failure to maintain status) during your E2 visa renewal US application.
As an E-2 visa Tax Accountant for Canadian Investors, our firm provides the integrated legal and
financial expertise you need to ensure every receipt, payroll record, and tax form directly supports
your long-term residency goals.
https://e2visa.ca/
Contact Us
CPA for E2 Visa
Website: https://e2visa.ca/contact-us/
Email: [email protected]
Phone No:+1 (832) 848-5155
Address: 1400 Broadfield Blvd, Suite 200, Houston, TX, 77084
https://e2visa.ca/
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