E‑2 Treaty Investor Visa: A Pathway for Canadians to Do Business in the U.S.

For many Canadian entrepreneurs and investors, the U.S. is a natural expansion market. With a population nearly ten times larger than Canada’s, it offers enormous opportunities for growth. But how do you actually move to the U.S. and run a business legally?

The E‑2 Treaty Investor Visa is one of the fastest and most flexible U.S. immigration pathways for Canadians. It allows you to invest in or start a U.S. business and live there to develop and direct it.

Whether you’re buying an existing business, starting a new one, or expanding a Canadian company south of the border, the E‑2 can open doors to long‑term opportunities without the high cost or long wait times of other visa categories.

Here’s everything Canadians need to know about the E‑2 visa—including real examples of how it works in practice.

Why Canadians Have an Advantage with the E‑2 Visa

The E‑2 visa is available only to nationals of countries that have a treaty of commerce and navigation with the U.S. Canada is one of those countries.

This means Canadian citizens can:

- Apply directly at a U.S. Consulate in Canada without first filing with USCIS

- Benefit from streamlined processing and often faster approvals

- Avoid some of the bureaucratic delays other countries face

It’s a treaty-based visa, so only Canadians—not permanent residents of Canada or citizens of non‑treaty countries—are eligible.

Who Qualifies for an E‑2 Visa?

There are two key parts to E‑2 eligibility: the investment and the investor.

Investment Requirements

Your investment must be:

- Substantial: enough to ensure the business is viable and can operate successfully

- At risk: you must have already invested or be actively in the process of investing (not just planning to invest)

- Committed: the funds must be irrevocably committed to the business, not sitting in a personal account

There is no fixed minimum investment amount. Instead, U.S. immigration officers assess your investment on a proportionality test:

• If the business is low cost to start (for example, a small nail salon), you may invest less—but you must show you’ve invested most, if not all, of the required funds to make it operational.

• If the business is higher cost, your investment must still be proportionate to the total startup cost.

In other words, it’s not about the exact dollar amount—it’s about how much you’ve invested relative to what’s needed for the business to succeed.

Business Requirements

The U.S. business must be:

- Real and operating – not a speculative or idle investment

- More than a marginal business – it should generate enough income to support you and ideally employ U.S. workers

Investor Requirements

You must:

- Be a Canadian citizen

- Own at least 50% of the business (or have operational control)

- Be coming to the U.S. to direct and develop the business

How Long Is an E‑2 Visa Valid for Canadians?

Canadians typically receive an E‑2 visa valid for up to 5 years.

The visa can be renewed indefinitely as long as the business continues to operate and meet the visa requirements.

While it does not directly lead to a green card, many Canadians use the E‑2 as a long‑term solution to live and work in the U.S.

What Types of Businesses Qualify?

Almost any legitimate business can qualify for an E‑2 visa. Common examples for Canadians include:

- Franchises – e.g., purchasing a U.S. franchise of a well-known brand

- Service businesses – such as consulting firms, marketing agencies, or IT companies

- Restaurants or retail stores – popular for first-time entrepreneurs

- Expansion of a Canadian company – opening a U.S. branch of an existing Canadian business

- Real estate holding companies with active management (passive rental property alone is not eligible)

The key is showing the business is real, active, and has the capacity to employ U.S. workers.

Real Case Scenarios for Canadians

Case 1: Buying a Franchise in Florida

Sarah, a Canadian citizen, wanted to relocate her family to Florida. She invested into a popular food franchise.- She showed a signed franchise agreement, lease for a retail space, and proof of funds already paid.- She hired 3 U.S. employees and demonstrated the business would be profitable.

Result: She received a 5-year E‑2 visa, moved to Florida with her spouse (who obtained work authorization) and children (who attend U.S. schools).

Case 2: Expanding a Canadian Tech Company to Texas

A Toronto-based software company wanted to enter the U.S. market. They formed a wholly owned U.S. subsidiary in Austin, Texas and invested in office setup, equipment, and initial staffing.- The Canadian CEO applied for an E‑2 visa to develop and direct the new U.S. office.- The company submitted a business plan showing projected U.S. contracts and growth.

Result: The CEO received a 5-year E‑2 visa and later sponsored key staff for E‑2 employee visas.

Case 3: Starting a Consulting Business in New York

Michael, a Canadian management consultant, wanted to base himself in New York to serve U.S. clients.- He incorporated a U.S. LLC, secured office space, and funded initial operations.- He showed signed client contracts and a marketing plan for U.S. expansion.

Result: He received a 3-year E‑2 visa and later extended it as his U.S. client base grew.

Bringing Key Employees on E‑2 Visas

Once your company is approved as an E‑2 enterprise, it can also sponsor E‑2 employees who share the same nationality as the treaty investor.

Who qualifies as an E‑2 employee?

- Executives or supervisors who will direct operations

- Essential skilled workers with specialized knowledge critical to the business

Key points:

- The employee must have the same treaty nationality (in this case, Canadian) as the E‑2 company owner

- They can apply directly at a U.S. Consulate, similar to the main investor

- Their E‑2 status is tied to the continued operation of the E‑2 business This is a great option for Canadian business owners who want to bring trusted staff from Canada to help manage or grow the U.S. operation.

Benefits of the E‑2 Visa for Canadians

- Quick processing – often within weeks at a U.S. Consulate in Canada

- Flexible investment options – start a business, buy a franchise, or expand an existing company

- Spouse and children included – spouse can apply for U.S. work authorization; children can attend school

- Unlimited renewals – as long as the business continues to operate

- Lower cost & lower risk than EB‑5 – no need for $800,000+ investment required for EB‑5 green cards

How Does the E‑2 Compare to Other U.S. Business Visas?

E‑2 vs. other business visas:

• E‑2 – For citizens of treaty countries like Canada, flexible investment, no direct green card but can transition later.

• L‑1 – Transfer from a Canadian company to a U.S. branch, must have a qualifying corporate relationship, can lead to EB‑1C green card.

• EB‑5 – Direct investor green card, requires high investment, direct green card.

• B‑1 – For temporary business visitors, no investment, no work authorization.

  
  

Common Mistakes with E‑2 Applications

Even though the E‑2 seems straightforward, many Canadians make mistakes that lead to delays or refusals:

- Investing too little or keeping funds in a personal account instead of committing them to the business

- Buying a passive investment like rental property with no active management

- Submitting a weak business plan with no clear growth or job creation strategy

- Failing to show the business is more than marginal (i.e., it must support more than just the investor)

- Not documenting the source of investment funds properly

Avoiding these mistakes is critical to getting approved.

Can the E‑2 Lead to a Green Card?

While the E‑2 is a nonimmigrant visa, many Canadians use it as a stepping stone to:

- EB‑5 investor green card (after growing the business and increasing investment)

- EB‑1C green card (if the E‑2 business grows into a multinational and qualifies for L‑1A)

- Family or employer-sponsored green card categories

So while it’s not a direct green card, it can be part of a longer-term U.S. immigration strategy.

Why Work with an Immigration Lawyer?

The E‑2 visa requires detailed documentation, a credible business plan, and strong evidence the investment is substantial and at risk.

At Tchern McCallum Immigration Law, we:

• Help you choose the best U.S. business structure for E‑2 eligibility

• Draft comprehensive business plans tailored for E‑2 approval

• Prepare all supporting documents to prove your investment and ownership

• Guide you through the U.S. Consulate interview process

• Advise on renewals, dependents, and long-term options

We’ve helped Canadian entrepreneurs successfully relocate to the U.S. and build thriving businesses.

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Ready to Build Your U.S. Dream Business?

The U.S. market offers huge opportunities for Canadian entrepreneurs. Whether you want to buy a franchise, expand an existing company, or start a new venture, the E‑2 visa can make it happen.

Contact Tchern McCallum Immigration Law today to book a consultation and start your E‑2 visa journey with confidence.