The E2 Visa for Canadian Entrepreneurs

What are the eligibility requirements for an E2 visa for Canadian?

One of the biggest E2 visa investors are from Canada. The US government recognizes the importance of Canadian investment and has created various pathways for Canadian entrepreneurs and investors to obtain an US visas. One such pathway is the E2 visa, specifically designed for investors who are citizens of countries with a bilateral treaty with US.

To be eligible for an E2 visa, an applicant must meet the following requirements:

1. Citizenship

The applicant must be a citizen of a country with a bilateral treaty and Canada is one of the treaty countries.

2. Investment

The applicant must have made a substantial investment in a U.S. business. The investment must be substantial enough to ensure the business’s success and create jobs for U.S. citizens.

3. Ownership

The applicant must have at least 50% ownership of the U.S. business.

4. Control

The applicant must have control of the U.S. business. This means that the applicant must have the authority to make decisions that affect the direction and management of the business.

The Application Process

The E2 visa for the Canadian application process consists of the following steps:

1. Find the Right Business

Before you can apply for an E2 visa, you’ll need to find the right business to invest in. The business you invest should be in a field that you’re familiar with, and it should have the potential to be profitable. You’ll also need to be able to demonstrate that you have the skills and experience necessary to develop and direct the enterprise. We recommend investing in a franchise as it gives you a headstart and lower risk.

2. Create a business plan

One of the E2 visa requirements is to have a comprehensive business plan with information about your business idea, financial projections, and marketing strategies. The plan should demonstrate that your business will be viable and will generate enough revenue to support you and any employees you may hire.

3. Establish a business entity in the U.S.

You’ll need to establish a business entity in the U.S. before applying for an E2 visa. This can be a sole proprietorship, partnership, corporation, or limited liability company (LLC).

4. Invest a substantial amount of capital

You must make a substantial investment in your U.S. business before you can apply for an E2 visa. There is no set minimum investment amount, but you should be prepared to invest at least $60,000 to $200,000 or more, depending on the nature of your business.

5. Gather required documents

You’ll need to prepare various documents to support your E2 visa application, including your passport, business plan, financial statements, and evidence of your investment in the U.S. business.

6. Complete the online DS-160 form

The DS-160 form is the online application for nonimmigrant visas to the U.S. You’ll need to fill out this form and submit it online.

7. Schedule an interview at a U.S. embassy or consulate

After you’ve submitted your DS-160 form and paid the application fee, you’ll need to schedule an interview at a U.S. embassy or consulate in your home country. During the interview, you’ll be asked about your business, investment, and plans for the future.

8. Attend the interview

Be prepared to answer questions about your business and investment plans. You should also bring all of the required documents with you to the interview.

9. Wait for a decision

After the interview, you’ll have to wait for a decision on your E2 visa approval. If your application is approved, you can enter the U.S. and start working on your business. If it’s denied, you may have the opportunity to reapply or appeal the decision.

Live In The USA And Build Your Dream Now. Let's Get In Touch.

What are E2 visa benefits for Canadian?

The E2 visa offers several benefits to Canadian entrepreneurs and investors, including:

1. Flexibility

The E2 visa allows the applicant to enter and exit the U.S. as needed to manage the business. There is no travel restriction.

2. Spousal employment

The spouse of the E2 visa holder is eligible to apply for a work permit to work in the U.S.

3. Dependents

Dependents of the E2 visa holder, including children under 21, are eligible to attend U.S. public school for free.

4. Pathway to permanent residence

While the E2 visa does not lead directly to permanent residence, it can be a stepping stone to permanent residence. After several years of successful business operation, the E2 visa holder may be eligible to apply for permanent residence under one of the U.S. immigration programs.

How long is the Canada E2 visa processing time?

In general, it takes from 2 weeks to 4 months.

The processing time varies depending on various factors, such as the completeness of the application and the volume of applications being processed in the U.S. consulate in Canada.

If you are planning to apply for an E2 visa, consult with our team for free. We will help and guide you to ensure that you take the right step and be confident with your investment in the USA. Consult today.

What does the at-risk investment requirement mean for Canadian E2 visa applicants?

For Canadian citizens applying for an E2 visa, the investment must be at risk. This means the investor’s funds must be committed to the business and subject to loss. Simply having money set aside in a bank account is not enough. The investment must be actively spent or allocated toward starting or operating the business.

According to the United States (U.S.) Department of State, an investment is considered at risk when the funds are irrevocably committed to the enterprise. This includes costs such as equipment, inventory, leases, and initial operational expenses. The capital must be placed at commercial risk with the objective of generating a profit. If the business fails, the funds must be subject to partial or total loss.

Passive investments do not qualify. For example, purchasing undeveloped land or holding shares in a company without active involvement does not meet the requirement. The business must be a real and active commercial enterprise producing goods or services.

The E2 visa also requires that the business is not marginal. A marginal business is one that is only capable of supporting the investor and their family. To qualify, the business should have the capacity to generate more significant economic contributions, such as employing U.S. workers.

To meet the at-risk requirement, applicants must show:

The funds are already committed to the U.S. business
The investment is subject to loss
The business is active and producing goods or services
The investor is involved in the business as a developer and director
The enterprise has the potential to support more than just the investor

This requirement ensures that the investor has a real financial stake in the business and is actively participating in its success.

Why is it important that money invested for the E2 visa is lawfully obtained?

If you’re applying for an E2 visa as a Canadian investor, one of the first things U.S. immigration officials will look at is where your money came from. The investment must come from a legal source, and you’ll need to prove it with solid documentation. This is a core requirement.

1. The law is clear on this

If your funds have any link to criminal activity, like unreported income, fraud, or anything else outside the law, your application will be denied. U.S. immigration law is strict on this point to protect the system and prevent abuse. Officers will want to see a clear financial trail that shows how you earned or acquired the money and how it ended up in your U.S. business.

2. You’re expected to be transparent

The government isn’t just reviewing your business plan but they’re also assessing your credibility. Being able to clearly explain how you got the funds shows that you meet the legal and ethical standards expected of an investor. If there are gaps in your financial story, or anything that raises red flags, your application can get held up or refused entirely. Even if your business looks strong, the numbers add up, and you’ve put real money into the venture, none of that matters if you can’t prove where the money came from. This is one of the most common reasons E2 applications get denied.

What documents help prove this?

There’s no official list, but in real-world cases, Canadian applicants usually submit:

Canada Revenue Assessment Notices to show income and taxes paid
Employment records like pay stubs or job letters
Bank and investment statements that show savings or transfers
Sale agreements if you sold a property or business
Loan documents if you borrowed against personal assets
Gift or inheritance records, with proof of how the donor got the funds

You don’t need every single document listed here but you do need to give officers a clear picture. They should be able to follow the money from its source to your U.S. business without confusion.

When your financial documents are clear and well-prepared, it can save you time. If officers aren’t left guessing or asking for more details, your application is less likely to face delays.

What are the key official resources for understanding the E2 visa process?

If you’re serious about applying for an E2 visa, getting your information from official U.S. government sources is important. These are the most reliable places to learn exactly how the visa works, what’s expected of you, and how to prepare a strong application. Here are the key resources every Canadian investor should know about:

1. U.S. Citizenship and Immigration Services (USCIS)

Website: uscis.gov

The USCIS explains the E2 visa from the U.S. immigration agency’s perspective. You’ll find the core eligibility criteria, details on change of status (for people applying from within the U.S.), and what forms you need to file. It’s also where you’ll find Form I-129, which is used if you’re already in the U.S. and applying for a change of status to E2.

2. U.S. Department of State – E2 Visa Overview

Website: travel.state.gov

This is the main page for E2 visa applicants who will apply through a U.S. consulate abroad, which is how most Canadians do it. It covers qualifications, the steps for applying at a consulate, required documents, and links to country-specific embassy pages.

3. U.S. Department of State – Treaty Countries List

Website: treaty list

This list shows which countries are eligible for E2 visas. Canada is on the list, but it’s still smart to check here first. If your investment involves partners or co-owners, everyone involved needs to be from a treaty country.

4. The Foreign Affairs Manual (FAM)

Website: fam.state.gov – 9 FAM 402.9

The FAM is used by consular officers to review and decide visa applications. It outlines how E2 applications are evaluated, what officers look for in a business plan, how substantial investment is interpreted, and other legal standards. It’s technical, but if you want to understand how officers think, this is where to look.

5. USCIS – Working in the U.S. Overview

Website: uscis.gov

This page covers all employment-based visa categories. It can help you compare the E2 with other options, such as the L-1 (for intra-company transfers) or the EB-5 (for permanent residency through investment).

These sites are the most accurate sources for E2 visa information. If you’re unsure about any part of the process, start here. They’re updated regularly and reflect how immigration and consular officers are actually reviewing applications today.

What is the marginality rule for the E2 visa?

The marginality rule is a core part of the E2 visa requirements. It exists to ensure that businesses created or purchased by E2 investors do more than just support the investor and their family. For Canadian entrepreneurs applying for this visa, understanding this rule is essential.

The marginality test asks whether your business will have a meaningful economic impact in the U.S., not just provide a personal income. U.S. immigration officers will look for signs that your business is viable, sustainable, and contributes to the broader economy, especially through job creation.

What makes a business non-marginal?

To meet this standard, your business must show:

Economic contribution- Your business should aim to hire U.S. workers. Even a small number of jobs can demonstrate that your business contributes to the local economy and isn’t just set up to benefit you personally.
Sustainability and viability- The enterprise should be positioned for long-term success. Even if it’s not profitable right away, your business plan should show how the business will grow and eventually generate profits that go beyond your personal living expenses.
Growth potential- Officers want to see that your business has room to scale. This includes a clear understanding of the market, defined goals, and a strategy for building over time. Businesses with competitive advantages or strong demand tend to be viewed more favorably.

How is this reviewed?

When reviewing E2 applications, U.S. immigration officials look at several indicators to assess marginality:

Job creation – This is often the clearest evidence that a business is not marginal. Hiring even one or two U.S. employees can support your case.
Revenue and financial projections – If your business isn’t profitable yet, you’ll need to show realistic projections backed by a solid business plan.
Business plan – A well-prepared plan helps officers understand your goals, how you plan to reach them, and how your business will grow beyond meeting basic personal needs.

What about solo entrepreneurs?

You don’t have to start with a full team. Many Canadian applicants start alone but demonstrate how they plan to grow. For example, service-based businesses such as consulting, tech, design, or coaching can still qualify if there’s a clear plan to expand and evidence of demand.

The takeaway for Canadians

The E2 visa is for entrepreneurs who are building real businesses. The marginality rule exists to ensure that those businesses matter not just to the investor, but to the U.S. economy. If your business can support you and show potential to support others or contribute meaningfully to the market, you’re on the right track.

What is the proportionality rule related to the E2 visa?

The proportionality rule looks at how much of your own money has already been invested compared to the total cost of the business. It’s used to decide whether your financial commitment is high enough to qualify as a substantial investment.

How it works

If the business is relatively low-cost, say, under $100,000, you’re generally expected to have invested close to 100 percent of the total.
For businesses with a higher startup cost, the required percentage may be lower. For example, if the total cost is $1 million, an investment of $400,000 to $600,000 might still be considered substantial, depending on how much control you hold and how much of the capital is already committed.

This rule ensures that investors have real financial skin in the game. It also prevents situations where applicants try to qualify for a visa with only a small or symbolic investment.

What counts toward the investment?

To satisfy the proportionality rule, your investment must be:

Personal funds that you legally own and control
At risk, meaning you could lose the money if the business fails
Irrevocably committed, meaning the funds have already been spent or obligated toward essential business costs

Typical qualifying expenses include inventory, equipment, commercial leases, franchise fees, legal and startup costs, and initial working capital. Money sitting in a bank account, unspent, does not count.

What Canadian applicants should know

Be ready to show the full cost of the business and a breakdown of how much you’ve invested so far.
Avoid heavy reliance on third-party funding. Loans secured with personal assets may be allowed, but loans secured by the business itself generally won’t count.
Make sure every dollar is documented. U.S. officers will expect a clear financial trail that proves the investment is both substantial and traceable.

7 drawbacks of the E2 visa Canadian entrepreneurs should understand

The E2 visa gives Canadians a way to run a business in the U.S., but it’s important to understand the limits before you apply. Here are some of the main drawbacks to keep in mind.

1. It doesn’t lead to permanent residency

The E2 visa is temporary. It doesn’t offer a path to a green card. Even if your business is successful, you’ll need to apply under another immigration category if you want to become a permanent resident.

2. Children lose dependent status at 21

Your children can come with you as dependents, but once they turn 21, they no longer qualify under your visa. At that point, they’ll need their own visa, like a student visa, to stay in the U.S.

3. Renewals are not automatic

Canadians can receive E2 visas for up to five years, and they can be renewed but there’s no guarantee. You have to show that your business is still active and meets the visa’s conditions. If it doesn’t, your renewal can be denied.

4. You must invest before you apply

You need to commit funds to the business before you apply. This means you’re putting your money at risk without knowing if your visa will be approved. The investment must be active and tied directly to the business.

5. The visa is linked to one business

The E2 visa only applies to the business you listed in your application. If you sell it, shut it down, or change direction, you’ll need to file a new application. The visa can’t be transferred to a new business automatically.

6. The business must be more than a job for you

The E2 visa has a marginality requirement. Your business must do more than support your personal income. It should have the potential to grow and create jobs for U.S. workers. Businesses that exist just to support you and your family often don’t qualify.

7. Dependents have limits

Your spouse can apply for work authorization, but your children can’t work. They can attend school, but their options are limited compared to green card holders or U.S. citizens. Once they age out, they must leave or switch to another visa.

Final note for Canadians

The E2 visa works well for Canadians who want to actively manage a U.S. business. But it’s important to plan ahead, especially if you’re thinking long-term, want permanent status, or are bringing family with you.

What is the purpose of the cover letter in an E2 visa application?

The cover letter explains how your application meets the E2 visa requirements. It gives the reviewing officer a clear summary of your case and helps them understand how the documents you’ve included support your eligibility.

It outlines:

That you are a national of a treaty country (e.g. Canada)

That you have made a substantial investment
That the funds are committed and at risk
That the business is active and operating
That you will direct and develop the business
That you intend to leave the U.S. when your visa status ends

The cover letter also helps organize your application by pointing to specific documents, often labeled as exhibits. It allows the officer to review your materials quickly and in context. Its purpose is to present the facts, connect them to the legal criteria, and make the application easier to assess.

What is the substantial investment requirement for the E2 visa?

One of the key requirements for Canadians applying for an E2 visa is making a substantial investment in a U.S. business. But what does substantial actually mean?

The U.S. government doesn’t define it by a specific dollar amount. Instead, they look at the size of your investment in relation to the total cost of the business. It’s about showing that you’ve made a real financial commitment that reflects your intention to actively run and grow the business.

So, how much is substantial?

It depends entirely on the type and size of the business. According to the U.S. Citizenship and Immigration Services (USCIS), your investment should be:

Large enough to show you’re fully committed to the success of the business
Proportional to the cost of starting or buying the business
Capable of supporting the likelihood that you’ll develop and direct it successfully

For lower-cost businesses, the expectation is that you’ve covered nearly all of the startup costs yourself, often 90 percent or more. For larger businesses, a smaller percentage may still be acceptable if the dollar amount is high and the investment carries real risk.

The investment must be at risk

This is an important detail. The funds must be committed to the business and subject to loss. In other words, you can’t just move money into a U.S. account and call it an investment. It has to be actively spent or contractually tied to the operation of the business.

Speculative or idle funds, such as uncommitted cash sitting in a bank, don’t qualify. Likewise, loans secured by the assets of the business (rather than your personal assets) typically don’t count, because the funds aren’t truly at risk.

It must be a real, operating business

The business must already be operating or very close to launching. This means there should be active contracts, leases, equipment purchases, or other concrete signs that the business is real and ready.

It can’t be marginal

According to both USCIS and the Foreign Affairs Manual, the business must have the capacity to do more than just support you and your family. It should show potential to grow, generate profit, and ideally create jobs for U.S. workers. A business that only exists to provide personal income is unlikely to meet the standard.

Bottom line for Canadians

There’s no fixed minimum amount, but the government is looking at the quality, commitment, and credibility of the investment. If you’ve put in enough capital to carry real financial risk and your business is set up to succeed, you’re on the right track.

If you’re unsure whether your investment qualifies, reviewing the FAM guidance or speaking with a licensed immigration lawyer is a good next step.

Required documents for an E2 visa application

For Canadian citizens applying to invest in a U.S. business

If you’re a Canadian planning to invest in and manage a business in the U.S., the E2 Treaty Investor visa may allow you to live and work there. Canada is a treaty country under U.S. immigration law, which means Canadian citizens are eligible to apply for this visa if they meet the requirements.

To apply, you must show that you’ve made a substantial investment in a real and operating U.S. business. U.S. immigration officers will review your application based on evidence that supports your eligibility. Below is a list of documents typically required by U.S. consulates and embassies. These are based on information from the U.S. Department of State, U.S. Citizenship and Immigration Services (USCIS), and the U.S. Foreign Affairs Manual (FAM).

1. Identification and required forms

Valid Passport
Must be valid for at least six months beyond your planned stay in the U.S.
Form DS-160 (Online Non-immigrant Visa Application)
Complete this online and bring the confirmation page to your visa interview.
Form DS-156E (Treaty Trader/Investor Application)
Required for E2 employees. Some consulates may request it from investors as well.
One U.S. Visa-Compliant Photograph
Must follow official specifications (2×2 inches, white background).
Visa Application Fee Receipt
Proof of payment of the non-refundable fee.

2. Business and investment evidence

Detailed Business Plan
Should explain your business model, financial projections, staffing, and how the business will support you and your household.
Proof of Investment
Documents showing that funds have been committed or spent, such as:
Wire transfer receipts
Purchase agreements
Signed contracts
Invoices
Escrow agreements (if applicable)
Source of Funds
Must prove the funds came from legal sources. Examples include:
Bank account statements
Proof of sale of personal or business assets
Tax returns
Gift or inheritance records
Business Registration Documents
These verify that the business is lawfully established in the U.S. and may include:
Articles of Incorporation or Organization
Operating Agreements
Partnership documents
Federal Employer Identification Number (EIN) assignment
Proof of Ownership
Show that you own at least 50% of the business or control its operations.

3. Operational and financial records

Commercial Lease or Property Documents
Evidence of a physical location in the U.S. for your business.
Invoices, Receipts, Contracts
Demonstrates that the business has already started or is ready to begin.
Marketing and Branding Materials
Website screenshots, printed brochures, advertisements, or any proof of business activity.
Client Agreements or Letters of Intent
Show that the business has or is building a customer base.
Tax Returns or Certified Public Accountant (CPA) Letter
Include recent U.S. tax filings if available, or a certified letter from a CPA showing your business’s financial standing.
Utility Bills
Verifies that your business premises are active.

4. For spouses and children (under age 21)

Proof of Family Relationship
Submit a marriage certificate for a spouse or birth certificates for dependent children.
Individual DS-160 Forms
Each family member must complete their own application form.
Work Authorization for Spouse
After entering the U.S., your spouse may apply for a work permit (Form I-765) through USCIS.

Important notes for Canadian applicants

Canadians do not need a visa to enter the U.S. for most short stays, but the E2 visa is required for long-term work and residence tied to business operations.
The E2 application is submitted directly to a U.S. consulate in Canada (usually Toronto, Vancouver, Calgary, Montreal, or Ottawa). Each consulate may have slightly different procedures or document requests.
Carefully review the instructions provided on the specific U.S. consulate’s website before submitting your application.

Guide to the E2 visa for Canadians

The E2 Treaty Investor visa allows Canadian citizens to live and work in the U.S. based on a substantial investment in a U.S. business. This visa is available only to nationals of countries that have a qualifying treaty with the U.S. Canada is one of those countries.

The E2 visa is often used by:

Canadians who want to start a new business in the U.S.
Canadians who want to buy or invest in an existing U.S. business
Senior employees of Canadian-owned companies operating in the U.S.

This visa is temporary but renewable indefinitely, as long as the business continues to meet the visa requirements.

Who Qualifies for an E2 Visa?

To be eligible, you must meet the following conditions. These are based on U.S. immigration law and consular guidance:

1. Canadian citizenship

You must be a Canadian citizen. Permanent residents of Canada who hold other nationalities are not eligible unless their citizenship is also from a treaty country.

2. A substantial investment

You must have already invested, or be in the process of investing, a substantial amount of capital in a real and operating U.S. business. There is no set dollar minimum, but:

The investment must be enough to ensure the successful operation of the business.
It should be at risk, meaning the funds are committed and could be lost.
Passive or speculative investments (like real estate held for future resale) do not qualify.

3. Ownership or control

You must own at least 50 percent of the business, or have operational control through a management position or similar arrangement.

4. Real and active U.S. business

The business must be:

Active and producing goods or services
Registered and legally operating in the U.S.
More than just an idea or a paper company

The U.S. government does not accept marginal businesses or those that only make enough income to support the investor. The business should have the capacity to generate jobs or economic impact.

5. Intent to depart the U.S.

Although the E2 visa is renewable, it does not provide a path to permanent residence. You must confirm your intent to leave the U.S. when your visa status ends. You do not need to maintain a residence abroad, but you must be able to show that you intend to depart eventually.

Important notes for Canadians

You apply directly at a U.S. consulate in Canada (not through USCIS unless you are changing status from inside the U.S.).
Common consulates that handle E2 cases: Toronto, Vancouver, Montreal, Calgary, and Ottawa.
Family members (spouse and unmarried children under 21) can accompany you. Your spouse can apply for work authorization in the U.S.

The role of a business plan in your E2 visa application

For Canadians applying for the E2 Treaty Investor Visa, the business plan is one of the most important documents in the entire application. It must clearly explain your business idea, your market, and how the investment will turn into a real, operating business that supports you and creates jobs in the U.S. Immigration officers use this document to understand whether your plan is viable and whether your business will meet the requirements of the visa.

The plan should include specific details: your business structure, product or service offering, market research, marketing strategy, and how your operations will be managed. It should also include a five-year financial forecast with projected revenue, expenses, and profits. The numbers need to make sense and be supported by research. You’ll also need to show how your E2 funds are being used and outline your plans for hiring U.S. workers.

A strong business plan gives the officer a reason to trust that your business will succeed. It shows that you’ve done the work, understand your market, and are prepared to run a real business. The plan helps prove that your business won’t be marginal, meaning it will do more than just support you at a minimal level.
Canadian applicants benefit from a strong treaty relationship with the U.S., but approval isn’t automatic. A clear, credible, and complete business plan gives you a real advantage.