Many people who wish to move to Florida will need to work in order to remain here on a permanent basis. Indeed, most people are below the retirement age and want to work anyway. One way of doing this is through the purchase of a business. Before you consider purcahasing a business you should seek professional advice from your immigration attorney as to your exact eligibility. The next stage is to determine the amount of investment, type of business and location you can afford. The list of businesses for sale is endless and it should be noted there are many out there that probably only exist on paper so as the common real estate Latin phrase states “Caveat Emptor” that is “Buyer Beware”
It is essential that you use a qualified and trusted professional to manage this process for you reviewing any red flags in the existing business documentation and remember this is generally at no cost to the buyer as most fees are recovered from the sellers in the form of a commission based on the purchase price. Depending on the advice from your immigration attorney you could be either starting up a new business or buying an existing one with existing stock, supplies, premises, and staff. The majority of people buying a business in Florida from the UK are doing so because of the requirements of their proposed E Visa with the most popular being the E2 visa.
E visas
E visas are treaty visas for traders or investors. This means that a person is allowed to remain in the U.S. for an indefinite amount of time in a reciprocal treaty of commerce and navigation between the U.S. and the country of nationality. The E1 treaty trader visa means the applicant must be engaged in substantial trade and the E2 treaty investor must be developing or directing an enterprise in which he or she has invested a substantial amount of capital. E2’s are granted for an initial period of two years and may receive extension as in two-year increments as long as the business is maintained.
The E2 visa has by far been the most popular visa used for British to enter the States given the broadly interpreted ‘substantial’ investment. Typically purchasing a business for in excess of $150,000 has resulted in visa success. However, numerous ‘fraudulent’ applicants have raised red-flags in the Embassy in U.K. and the requirements for initial E2’s and E2 renewals are becoming more stringent. People looking to use this method to emigrate must also be aware of some of the criterion of the visa – you have to work in the business and maintain profit and growth indefinitely otherwise a renewal is unlikely. Also, for those with children, once the child reaches the age of 21, they are no longer covered under the visa and subsequently must leave the country or apply for a new visa themselves.
Before applying for an E2 Visa you must search for a business. In my experience I have seen many new businesses fail because the of owners lack of experience in the business they have chosen to purchase. Remember you must manage the business you purchase to satisfy the requirements of the E2 Visa. Another important consideration is dependant on your own level of professional ability and experience and it is generally better to stick to what you know, unless you are going to employ a manager for the business who has the necessary skills and experience. In my own experience I worked as a Chartered Building Surveyor in the UK, managing construction and real estate so when I moved to Florida it was a fairly simple transition to doing something I was very experienced in doing but just in a different county with new legislation. I have known many very professional people from the UK come to Florida and buy a business such as a pool cleaning company, only to last a short while because the role did not match their own professional integrity and they became very de motivated. So the key is to research the areas of your own specialty, professionalism or interests first before you just a pick a business from the list that is within your budget.
The first step in the process is normally a free telephone consultation. After the consultation enough information can be determined to identify and assign the most appropriate business agent to work with you, known as a Business Broker. In order to proceed, the Business Broker will need some confidential information forms completed together with an Exclusive Buyer Brokerage Agreement. The forms required are the Confidential Buyers Personal Profile and the Confidential Personal Financial Statement. The purpose of this information is to assist determining your full requirements together with your qualification to pursue with a purchase. Generally if the buyer is seriously looking to purchase a business this does not cause a problem and it necessary for the agent to have this information in full to succeed with your requirements.
A full business search is carried out based on the information you have provided and a short list is drawn up of potential businesses. When you have selected your preference and signed confidentiality agreement further information can be provided on the business and company accounts. It is recommended that you seek advice from a reputable Certified Public Accountant (CPA) who can review the account and the filed tax returns. When you are satisfied with all the documentation, premises, stock, supplies and staff if applicable it is time to make your offer for the purchase. If all is acceptable the final stages of Due Diligence will be carried out before proceeding to the closing and the full acquisition of the business.
Below is a typical guide to the steps you will need to follow.
Tips to success
- Always use a business professional and legal representative
- Never buy sight unseen
- Try to keep within your own realms of professional capability and budget
- Ensure the business is within the requirements of any visa restrictions
- Review the existing business location and the surrounding environment at different times of the day and night
- Review existing staff , salaries and employment contracts
- Review any lease agreements on existing vehicles and machinery
- Request an attorney to search for any pending, past or present legal actions against the business
- Review detailed stock control data and full inventory
- Obtain employers liability insurance and relevant insurance for staff
Of course this is a very simplified explanation to give you an overview and it is never recommended to try the process alone without full professional representation or you could find yourself committing to buying a business even though your own Due Diligence has discovered some errors or omissions.
Many of my clients start with Florida as their holiday destination and fall in love with the weather and lifestyle. Some progress with the purchase of a holiday home but many are now choosing Florida as their permanent residence and starting a new business and lifestyle. The services I provide cater for all the needs that are so often taken for granted in the home country. I have assisted many clients through this transition based on my professional experience and the unfortunate mistakes from many people who have tried either to do it alone or without professional representation.
Testimonials
“We were introduced to John McLoughlin by a UK based Estate agent as John was considered as an expert in the area that we were looking for a property. He assisted us finding our dream home and was able to negotiate a very good price for our long term investment. Throughout the process we found his services to be very professional and we will be using him again for our next purchase.”
Bill & Lan Edwards (UK) Purchase in Windermere Florida
“We were referred to John McLoughlin by another UK South Florida based Realtor as we wished to purchase in the Kissimmee area. Johns experience in construction & real estate quickly assisted us identify properties that were not suitable for our needs and he found us a property that matched our criteria perfectly, we would not hesitate to recommend John”
Chris & Debbie D (UK) Purchase in Kissimmee Florida
Qualifications snapshot
- Member of The National Association of Estate Agents (UK)
- Member of The Orlando Regional Realtor Association (USA)
- Member of The British American Chamber of Commerce (USA)
- Fellow of The Chartered Institute of Building (UK)
- Fellow of The Association of Building Engineers (UK)
- Certified ASHI Home Inspector (USA)
- Certified Mold Inspector (USA)
- BSc hon`s Degree Building Surveying (UK)
- NEBOSH Heath & Safety Advisor (UK)
I now assist many British, European and American clients find their long term financial investment property in Central Florida. I have acquired a worldwide network of referring partners from Estate Agents in the UK to Financial Advisors the Middle East.
Please feel free to check any of my qualifications and references with the following worldwide professional organizations and regulating bodies.
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