Understanding U.S. E-1 and E-2 Visas for Canadian Entrepreneurs and Canadian Companies

A Canadian Guide to U.S. E-2 Investor & E-1 Trader Visas

For a lot of Canadian business owners and Canadian companies, the US is the next logical step in growing their business. Cross-border business growth has always been an important part of the Canada–U.S. economic relationship, whether it’s to open a branch, start a new business, or invest in an existing U.S. company. The E-1 Treaty Trader Visa  The E-2 Treaty Investor Visa and are two visa options that Canadians should pay close attention to when looking into these opportunities.

As Toronto immigration lawyers who have worked with many  Canadian business owners and investors, we often get the same question: What’s the difference between the E-1 and E-2 visas? How much money do I need to put in? What are the dangers? This guide gives Canadians an overview of both options for these temporary US visa categories

What is the E-1 Treaty Trader Visa?

The E–1 Treaty Trader Visa is for Canadians or Canadian companies  who do business between Canada and the United States. Goods, services, or even technology can be part of this trade. To be eligible, at least half of your international trade must be with the US. If approved, the E-1 visa is valid for 5-years and renewable in 5-year increments, provided that the company continues to meet the E-1 criteria. It is a great option for those who are eligible, as there is no additional capital outlay required.  You may already be eligible without knowing, if you currently do business with US clients or customers!

What is the E-2 Treaty Investor Visa?

If a Canadian citizen or Canadian company  invests in a U.S. business, they can live and work in the U.S. on the E-2 visa. It is important to note that there is no set dollar amount that must be invested, but the investment must be “substantial” for the size and type of business. For instance, starting a small tech company may not need as much money as opening a factory.

If you have an E-2 visa:

• It is valid for 5 years. 
• You can run and grow your business in the U.S.
• Your spouse can ask for permission to work.
• Your dependent children can go to school in the U.S.
• As long as your business stays open and makes money, you can renew the visa as many times as you need to.

You can read our full guide, “E-2 Investor Visas Explained – Insights from Lainie Appleby & Joel Guberman,” for a more in-depth look at the investor visa process.

Which is better for Canadian business owners, E-1 or E-2?

Whether the E-1 or the E-2 is a better option, will be dictated by the facts of your particular situation.  A summary of each is below.

Why a lot of Canadians get the E-2 visa

The E-2 visa is an excellent options  for eligible  Canadians because it a straight-forward path to enter the U.S. market. Many Canadian companies, from retail stores to software companies, have used this visa to set up shop in the U.S.

Important Things for Canadians to Think About

Canadian should think carefully about the following before applying for an E-2 visa:

1. Proof of Funds: You need to show the source of funds for the investment comes from and that it was legally obtained
2. Business Plan: A detailed and viable business plan is an important part of a successful E-2 application.
3. Investing comes with some risk, but passive investments, like buying real estate without running a business, don’t count.
4. Renewals and Compliance: To renew your visa, you must keep your business in good standing.

Final Thoughts

The  the E-1 Treaty Trader Visa and E-2 Treaty Investor Visa are two of the simplest and most flexible options for Canadians seeking to work temporarily in the U.S. They do not directly flow into US permanent residence in most instance, but they do make it easier to move your family, build your business, and get closer to the U.S. market.

If you need help choosing the right visa option for you, contact Guberman // Appleby Immigration Lawyers.