IN THIS GUIDE · Structure the ownership so the Canadian investor actually directs the business
Start with the E-2 eligibility and application overview
Nationality and ownership must line up
At least half of the enterprise must be owned by nationals of the treaty country, and the investor must be a national of that country. Canada qualifies. With the nephew holding 40 percent, the couple hold 60 percent and the ownership test is met; if he negotiated up to 50 percent, treaty ownership would sit exactly at the threshold and any further dilution would end eligibility. Ownership is assessed on the operating entity, so if the couple hold their shares through a Canadian holding company, that company's own ownership must be traced back to Canadian citizens.
Control means the investor develops and directs
Ownership of a majority stake ordinarily satisfies the develop-and-direct requirement, but a management agreement giving the nephew day-to-day control of operations, hiring and finances can undermine it. The couple should reserve the authority that matters: approval of budgets, hiring and firing, capital spending and the right to replace the manager. A written operating agreement should say so. Their lodge experience is relevant evidence that they are able to direct the business, and their planned roles should be described in the application.
Make the money irrevocably committed without giving it away
Funds must be at risk and committed before the visa is issued; a plan to invest is not an investment. The purchase can be structured with the price held in escrow, released to the seller only on visa issuance, which is accepted as a commitment while protecting the couple if the case fails. The sale proceeds from the Canadian property must be traced from the sale to the escrow account with bank records. Money still sitting in the couple's own savings account, or an unsecured promise to pay later, does not count. The first review should list each proposed payment, its contractual trigger, whether it can be recovered at the investor's discretion, and the business asset or service it buys. A deposit that becomes non-refundable under the agreement, equipment paid for by the enterprise, and properly conditioned escrow can be supported by contracts and wire records. A refundable reservation or a transfer that the investor can simply reverse is weaker because the financial exposure has not yet occurred.
Show the inn is substantial and not marginal
Substantiality is judged in proportion to the cost of the business: a purchase of the going concern, its furniture, systems and working capital should bring the committed amount close to the total. Marginality asks whether the inn will do more than support the couple; staffing of housekeeping, front desk and maintenance, with a five-year projection showing wages paid to US workers, addresses it. E-2 status is renewable while the business continues but carries no direct path to permanent residence. The spouse of the principal investor is employment-authorised incident to status; children under 21 may study but not work.
Sources reviewed 2026-09-07. This guide covers a preparation focus; it is not an individual eligibility assessment.