U.S. E-2 Investor Visa | Vancouver Immigration Lawyer | YA Law Corporation
Are you a Canadian citizen considering buying, starting, or expanding a business in the United States? The E-2 Treaty Investor Visa may provide an opportunity to live in the United States while developing and directing a qualifying business. The E-2 is a U.S. nonimmigrant visa available to eligible nationals of treaty countries who make a substantial investment in a genuine U.S. business. At YA Law Corporation, a Vancouver-based immigration law firm, we recognize that prospective investors often have questions about the amount of investment required, nationality, business ownership, financial risk, and whether their family members can accompany them. Below, we answer some frequently asked questions about the E-2 Treaty Investor Visa.
FAQ 1: What Does It Mean to Be a Treaty National?
To qualify for an E-2 investor visa, an applicant generally must be a national of a country that maintains a qualifying treaty or other applicable agreement with the United States.
Canada is an E-2 treaty country. Therefore, Canadian citizens may qualify for an E-2 visa if they satisfy the remaining eligibility requirements.
However, Canadian permanent residence alone does not establish treaty nationality. An individual who is a permanent resident of Canada but not a Canadian citizen must establish qualifying nationality through another eligible treaty country.
Important: Treaty nationality is determined by nationality, not simply by where an investor lives.
FAQ 2: Must Your E-2 Investment Be at Risk?
Yes.
An E-2 investment must be genuinely committed to the business and subject to potential financial loss if the business is unsuccessful. The investment cannot simply represent money that the investor intends to invest at some future date. Funds merely sitting in a personal or business bank account, without being irrevocably committed to the investment, generally do not satisfy the at-risk requirement. For example, purchasing equipment, acquiring inventory, paying qualifying business expenses, or committing funds toward the acquisition of an existing business may help demonstrate an investment at risk, depending on the circumstances.
FAQ 3: Can You Qualify If Your Investment Is Guaranteed?
Generally, no.
An arrangement protecting the investor from financial loss may fail to satisfy the E-2 at-risk investment requirement. The E-2 visa is intended for investors who assume genuine commercial risk. If an investor is guaranteed repayment regardless of whether the business succeeds or fails, the arrangement may not qualify as an investment at risk. However, an investment may sometimes be structured through a properly designed escrow arrangement, with release of the funds conditional on E-2 visa approval. The specific terms of the transaction must be carefully evaluated.
FAQ 4: Is There a Minimum Investment Amount for an E-2 Visa?
No fixed minimum dollar amount applies to every E-2 investment.
The investment must be substantial in relation to the total cost of purchasing or establishing the business. For example, a smaller service-based business may require less capital than a manufacturing company or a business requiring substantial equipment, premises, and inventory. The amount invested, the nature of the business, and the investor’s financial commitment are important considerations. An investment of $100,000 is not automatically sufficient, and an investment below that amount is not automatically disqualified.
FAQ 5: Can You Obtain an E-2 Visa by Purchasing an Existing U.S. Business?
Yes.
An investor may qualify by purchasing an existing operating business in the United States. The investor must demonstrate that the investment is substantial, genuinely committed, and at risk, and that the investor will develop and direct the business. Purchasing a business does not automatically guarantee E-2 approval. The ownership structure, source of funds, business operations, and other eligibility requirements must also be assessed.
FAQ 6: Can You Qualify for an E-2 Visa by Starting a New Business?
Yes.
An investor may establish a new U.S. business rather than purchasing an existing one. However, a business idea or an unimplemented business plan alone is insufficient. The applicant must demonstrate that the enterprise is real and active, or sufficiently close to commencing actual business operations, and that the required investment has been committed.
FAQ 7: Can You Obtain an E-2 Visa Through Passive Investment?
Generally, no.
The E-2 visa is intended for investors who develop and direct an active commercial enterprise. Simply purchasing stocks, holding undeveloped land for appreciation, or making another passive investment generally does not qualify. The business must be a real, active commercial undertaking that produces goods or services for profit.
FAQ 8: Must You Own 100% of the U.S. Business?
No.
An E-2 investor does not necessarily need to own the entire business. Generally, the investor must demonstrate control of the enterprise, commonly through at least 50% ownership or another legally sufficient means of operational control. Ownership and control must be evaluated in light of the actual business structure.
FAQ 9: Can Your Spouse and Children Accompany You to the United States?
Yes.
An eligible E-2 investor’s spouse and unmarried children under 21 may qualify for dependent E-2 status.
An eligible E-2 spouse may be employment-authorized incident to status, subject to applicable documentation requirements.
Dependent children may attend school in the United States, but they do not receive employment authorization merely through E-2 dependent status.
FAQ 10: Does the E-2 Investor Visa Lead Directly to a Green Card?
No.
The E-2 is a nonimmigrant classification and does not itself provide permanent residence in the United States. However, an E-2 investor may separately explore an immigrant visa category, such as EB-5 or another employment-based immigration option, if eligible. An E-2 visa approval does not automatically establish eligibility for an immigrant visa or green card.
FAQ 11: How Long Can You Stay in the United States With an E-2 Visa?
E-2 nonimmigrants are generally admitted for up to two years at a time. The visa’s validity period is different from the authorized period of stay and depends on factors including the applicable reciprocity schedule. Extensions of E-2 status may be available in increments of up to two years, provided the applicant continues to satisfy the applicable requirements. There is generally no fixed maximum number of E-2 extensions, but continued eligibility and the required intent to depart upon termination of E-2 status remain important. YA Law Corporation provides USA immigration law services in Vancouver, British Columbia, including matters involving Canadian and U.S. immigration.
Contact YA Law Corporation
Website: www.yalaw.ca
Email: admin@yalaw.ca
Telephone: 604-620-9598
***This article provides general information and does not constitute legal advice. E-2 eligibility depends on the applicant’s individual circumstances, the investment, and applicable U.S. immigration requirements. re important.
Considering an E-2 Investor Visa From Canada?
For Canadian entrepreneurs considering investment opportunities in the United States, understanding the E-2 requirements before committing substantial funds can help identify potential immigration risks.
Questions about treaty nationality, source of investment funds, and business ownership? Contact us to speak with a USA Vancouver Immigration lawyer at YA Law Corporation.