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KITCHENER · E-2 FIELD GUIDE

Can existing revenue prove every expansion assumption?

Sources checked:

THE DIRECT ANSWER

No. Explain how current results relate to the actual proposed enterprise and identify future estimates as estimates. The expansion’s commitments and operating account require evidence.

Use the right business boundaries

Do not borrow sales from a separate enterprise without explaining the relationship. Show what is being acquired or funded and what remains a proposal.

The enterprise must be an active commercial undertaking producing goods or services for profit, not a passive holding of land or equipment, and it must have the present or future capacity to generate more than a minimal living for the investor and family. The principal investor should wait for valid E-2 status before performing productive work and must still show treaty nationality, a qualifying ownership structure, substantial capital irrevocably committed at risk, a non-marginal operating enterprise, and development and direction through 50% ownership or operational control. An operating company supplies records that a startup must construct, but the requirements are identical: treaty nationality, substantial at-risk capital, a genuine commercial enterprise, the investor's ability to direct it, and more than marginal capacity. The classification for employees requires that the enterprise be at least fifty percent owned by treaty-country nationals, that the employee share that nationality, and that the position be executive or supervisory, or require special qualifications essential to the enterprise.