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Hypothetical example: a Canadian citizen living in White City who has run a seasonal landscaping and snow-removal business for a decade agrees to buy 60% of a U.S. landscaping company from its retiring founder, who will keep 40% and stay on for two seasons. The E-2 nationality rule is satisfied because the investor is a Canadian citizen and Canadian nationals will own more than half of the enterprise. The harder questions are whether he genuinely develops and directs the business while the founder still works there, how the purchase is structured so the funds are irrevocably committed, and how goodwill and equipment are treated in the substantiality calculation.
Ownership is enough for nationality; control is a separate showing
An enterprise is Canadian for E-2 purposes when Canadian citizens own at least 50% of it, so 60% satisfies that rule. Developing and directing is assessed separately, and a majority owner usually meets it by virtue of the stake, but the record must not contradict it. If the shareholder agreement gives the founder a veto over hiring, pricing and capital spending, or if the founder remains president with the buyer as a silent partner, the officer may conclude the buyer does not direct the business. Draft the agreement so that the buyer holds the executive role, chairs the board, and has final authority, with the founder in a defined transitional role that expires. The two seasons of overlap are a strength if described as handover rather than co-management.
Structure the purchase so the money is at risk
A share purchase for a business that already operates can be closed into escrow with release conditioned on visa issuance; that is an accepted way to make the funds irrevocably committed without losing them if the visa is refused. The escrow must be genuine, with the funds outside the buyer's control and the only condition being the visa. Seller financing is common in owner transitions, but a note secured on the business's own assets is not the buyer's capital at risk and does not count toward the investment; a loan secured on the buyer's Canadian house does count because he is personally liable. Keep the purchase price allocation, the escrow agreement and the loan documents consistent with each other.
What the investment is measured against
Substantiality compares the invested amount with the total cost of purchasing the enterprise, here the price for 60% plus any working capital committed. Goodwill is part of the price and counts as investment when the purchase is genuine, though an inflated goodwill figure invites questions. Equipment, trucks and contracts add to the value and to the operational reality. Because the business already has staff and revenue, marginality is easier to show than for a startup; attach payroll and financial statements for the past three years and a plan for the next five. The E-2 spouse is employment-authorized incident to status and may work in the business or elsewhere. E-2 does not lead directly to permanent residence, so treat it as an operating status and revisit the long-term plan separately.
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.