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BALGONIE · RELATIONSHIP OR INVESTMENT

Compare an acquired group company with an independently purchased franchise

USAvisa field guide · 3 minute readReviewed 7 September 2026
THE SHORT ANSWER

Hypothetical example: a Regina engineer comparing an affiliate transfer with control of a calibration company. These two opportunities may look similar commercially while raising different immigration questions. Describe each proposed arrangement separately before comparing possible routes. Review the governing records and current official conditions before making any irreversible employment, travel or financial commitment. Keep every unresolved fact expressly identified. Hypothetical example: The owners of a Canadian acoustic-engineering firm want a U.S. presence. One owner may transfer to manage a subsidiary; alternatively, she may personally buy a controlling interest in a U.S. testing laboratory. The decision is not which label sounds faster. It is whether the facts support a corporate transfer requiring a qualifying relationship and qualifying foreign employment, or an investor route requiring treaty ownership, committed risk capital, and real direction of a non-marginal enterprise. Map both transactions separately before spending. Corporate registers and payroll history settle the L-1 side; purchase documents, funding trails, and operating rights settle the E-2 side. L-1A has a general seven-year limit and L-1B a five-year limit, while E-2 does not itself create permanent residence. A plan can change, but the evidence cannot make the two arrangements interchangeable. The l1-or-e2 working file should end with a short decision note: proceed, pause for a missing record, or select a different route. Name the record that settles each open point, its custodian, and the event that may change the answer. This turns a long list of documents into a usable sequence. It also prevents a commercial deadline, a sales claim, or a family expectation from being treated as proof of an immigration requirement in writing. Record adverse facts beside favorable ones and resolve material discrepancies before submitting any representation.

01

Map the corporate-transfer proposal

Identify the entities, relevant employment history and proposed duties. Provide records of the actual relationship, distinguishing completed ownership changes from plans. The L assessment should not rely on a purchase that has only been discussed. For L-1, first confirm the relationship between organizations and the employee's continuous qualifying year abroad in the prior three years. Then assess whether the U.S. job is managerial, executive, or uses the claimed company knowledge.

02

Map the investor proposal

Describe nationality, funding, the enterprise and operating rights under the franchise terms. An E-2 review should use that arrangement rather than borrowing conclusions from the applicant's work for another business. For E-2, test nationality, control, source and path of funds, binding commitments, and non-marginality. A personally owned purchase cannot simply borrow the related-company evidence from a transfer plan.

03

Compare evidence gaps and consequences

Ask which facts need verification for each proposal and which commitments are irreversible. Commercial and tax questions may require their own advice. Choosing between labels is less useful than understanding what remains unresolved in the actual options. Compare what becomes irreversible under each option, who bears the risk, and what family timing follows. The better route is the one the authentic records can support, not the one with the shortest slogan.

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