Read the general investor planning overview
Hypothetical example: a Mission heavy-truck mechanic is buying an established U.S. truck and trailer repair shop as an asset purchase: hoists, tooling, parts inventory, a lease assignment and goodwill. E-2 asks whether his funds are irrevocably committed and exposed to loss, whether the amount is substantial for this business, and whether the shop will employ more than himself. The valuation the seller offers matters less than which of those dollars an officer will count as his capital at risk. Hypothetical example: A Canadian bicycle-repair business owner plans to buy a U.S. service shop with a refundable deposit and a seller note secured only by the shop's tools. The decision is whether to restructure the transaction before applying. The deposit agreement and loan security settle whether the money is truly exposed to loss. A business-secured seller note ordinarily does not make the buyer's capital at risk. Build the source-and-use schedule before closing so the application reflects the deal actually signed, not the deal the buyer hopes to make later.
Classify each dollar in the deal
Money paid for equipment, inventory and goodwill on closing is at risk once paid. A deposit that is refundable if he changes his mind is not, until it becomes nonrefundable or is held in escrow conditioned on visa issuance. Amounts he will owe the seller under a vendor take-back secured on the shop's own assets are not his investment, because the shop, not he, bears the loss; the same note secured on his Mission property would count. Working capital sitting in a personal account, earmarked but unspent, is a plan rather than an investment. List the purchase price line by line with the status of each amount and the document that proves it. A useful closing checklist lists each asset, price, payment status, seller obligation and funding source, followed by the employment plan. Compare that list with the purchase agreement and bank trail. The decisive choice is whether the committed investment and staffing model together show a real, nonmarginal enterprise. Do not rely on gross revenue alone; examine payroll, owner compensation and the capacity for the business to grow beyond supporting the investor's household. If assumptions cannot be supported, revise them before the purchase becomes irreversible.
Judge substantial and marginal against a repair shop
Substantiality compares his committed funds with the total cost of acquiring this business; there is no fixed threshold, and a lower-cost business needs a higher share from him personally. Marginality asks whether the enterprise produces more than a living for his family, either now or within five years. An established shop with two technicians and a service writer on payroll is a good answer; a shop whose staff all leave at closing, leaving him alone at the bench, is a poor one. The business plan should show retained employees, a hiring schedule and revenue supported by the seller's actual financial statements rather than a projection. A useful closing checklist lists each asset, price, payment status, seller obligation and funding source, followed by the employment plan. Compare that list with the purchase agreement and bank trail. The decisive choice is whether the committed investment and staffing model together show a real, nonmarginal enterprise. Do not rely on gross revenue alone; examine payroll, owner compensation and the capacity for the business to grow beyond supporting the investor's household. If assumptions cannot be supported, revise them before the purchase becomes irreversible.
Keep control, nationality and the household in view
He must own at least half the enterprise and direct it, which an asset purchase into his own U.S. entity ordinarily satisfies; a U.S. partner holding more than half would defeat the treaty-ownership requirement. Source of funds is traced from Mission accounts, equipment sales or personal borrowing through to the closing. Canadians apply for the E-2 visa at a consulate, since the classification requires one. His spouse would be authorized to work incident to dependant status; children may study only. The classification renews while the shop operates but offers no direct path to permanent residence, which the family should weigh before selling anything in Mission. A useful closing checklist lists each asset, price, payment status, seller obligation and funding source, followed by the employment plan. Compare that list with the purchase agreement and bank trail. The decisive choice is whether the committed investment and staffing model together show a real, nonmarginal enterprise. Do not rely on gross revenue alone; examine payroll, owner compensation and the capacity for the business to grow beyond supporting the investor's household. If assumptions cannot be supported, revise them before the purchase becomes irreversible.
What else is on your mind?
Is there one minimum investment that guarantees E-2 eligibility?Is holding money or owning an asset enough for E-2?Editorial source review: 2026-09-07. General preparation guidance, not an individual assessment.