Do not equate a total of future payments with money already invested. Assess the actual commitment, risk and treatment of each expenditure under the E-2 rules. A signed schedule, paid deposit and completed payment establish different facts, and the business still needs a credible funding plan.
Build both a commitment record and a cash forecast
Identify amounts paid, obligations incurred and resources for future operations. Working capital requires factual analysis rather than automatic exclusion. Keep government and professional charges separate and do not inflate the investment by counting the same obligation twice.
List capital paid, binding liabilities, working funds, professional fees, government charges, and personal living reserves in separate columns. A first review should calculate substantiality in relation to the genuine cost of buying or creating this particular enterprise, not by seeking a universal dollar threshold. Funds counted as qualifying investment must be exposed to commercial risk and should not be counted twice as both a deposit and a later purchase. Keep receipts, invoices, escrow records, and financing terms. A promising revenue forecast does not convert an unpaid vendor quote into capital already committed.
Hypothetical example: a commercial-kitchen company pays for ovens, deposits rent, and reserves cash for payroll. The analysis must identify which amounts are truly committed and how the full enterprise cost makes the investment substantial.