For Canadian entrepreneurs and businesses looking to establish operations in the United States, navigating the U.S. immigration system can be complex. While the E-2 visa is a popular choice for investors, it is not the only option for those seeking to start or expand a business in the U.S. Entrepreneurs should explore alternative visa classifications that may better align with their long-term business and immigration goals.
Understanding the Limitations of the E-2 Visa
The E-2 Treaty Investor Visa is designed for individuals investing a substantial amount of capital in a U.S. business. While it offers many advantages, it also comes with certain restrictions:
- Available only to nationals of treaty countries – Since Canada has a treaty with the U.S., Canadian citizens can apply, but those from non-treaty countries cannot.
- Requires a “substantial” investment – The exact amount varies, but applicants must demonstrate significant financial commitment.
- Must maintain majority ownership – The investor must control at least 50% of the business, which can limit funding options.
- Does not lead directly to a Green Card – The E-2 visa is temporary and does not provide a direct path to permanent residency.
Given these limitations, business owners may need to consider other visa options to achieve long-term stability and growth in the U.S.
Alternative U.S. Business Visa Options
1. L-1 Visa: Transferring Key Employees from a Canadian Business
The L-1 visa is ideal for Canadian companies expanding into the U.S. by transferring key employees, such as executives, managers, or specialized knowledge workers.
- Best for: Business owners with an established company in Canada looking to open a U.S. subsidiary, branch, or affiliate.
Key requirements:
- The U.S. company must have a qualifying relationship with the Canadian business.
- The applicant must have worked for the Canadian company for at least one year in the past three years.
- The employee must be transferred in a managerial, executive, or specialized knowledge role.
Advantages:
- L-1A visa holders can apply for a Green Card through the EB-1C immigrant visa category.
- Allows for longer-term presence (up to seven years for executives and managers).
2. EB-5 Immigrant Investor Visa: Direct Path to a Green Card
The EB-5 Immigrant Investor Program allows entrepreneurs to obtain U.S. permanent residency (Green Card) by making a significant investment in a U.S. business.
Best for: Investors with at least $800,000 to $1,050,000 to invest in a U.S. business.
Key requirements:
- The investment must create at least 10 full-time jobs for U.S. workers.
- The business must be an active commercial enterprise, not a passive investment.
Advantages:
- Leads directly to a Green Card for the investor and their immediate family.
- No requirement to maintain a foreign business.
- Allows investors to live and work anywhere in the U.S.
3. H-1B Visa: Employment-Based Sponsorship for Entrepreneurs
While typically used for high-skilled workers, the H-1B visa can sometimes be an option for entrepreneurs and business founders who meet specific requirements.
Best for: Entrepreneurs with specialized knowledge (e.g., tech startups, engineers, financial analysts).
Key requirements:
- The applicant must have a U.S. employer sponsor (even if it’s their own company).
- The job must require a bachelor’s degree or higher in a specialized field.
- The salary must meet prevailing wage requirements.
Advantages: - Allows for dual intent, meaning applicants can pursue a Green Card.
- Can be used as a stepping stone to other immigration pathways.
4. O-1 Visa: Extraordinary Ability Entrepreneurs
The O-1 visa is for individuals with extraordinary ability in business, science, or technology. Entrepreneurs who have received recognition in their field may qualify.
Best for: Founders with significant achievements, awards, or press recognition.
Key requirements:
- Must demonstrate extraordinary ability in business or an innovative field.
- Requires evidence of major contributions, such as media features, industry awards, or high salaries.
Advantages: - Can lead to permanent residency (EB-1A Green Card).
- No minimum investment amount required.
5. TN Visa: Limited Business Options for Canadians
Under the USMCA (formerly NAFTA), Canadian professionals may qualify for a TN visa, which allows them to work in the U.S. in specific professional occupations. However, the TN visa does not allow self-employment, making it less suitable for business owners.
Best for: Canadian professionals working for U.S. employers in pre-approved fields (e.g., engineers, accountants, consultants).
Limitations:
- Cannot own or operate a business in the U.S.
- Does not lead to permanent residency.
Choosing the Best Visa for Your Business Goals
The right visa strategy depends on your business structure, investment capacity, and long-term goals. Below is a quick comparison of key options:
| Visa Type | Best For | Leads to Green Card? | Investment Required? | Key Considerations |
| E-2 | Treaty investors starting a business | ❌ No | ✔ Yes (substantial) | Requires majority ownership; must renew indefinitely |
| L-1 | Expanding a Canadian company into the U.S. | ✔ Yes (L-1A to EB-1C) | ❌ No | Requires a qualifying relationship between the U.S. and foreign company |
| EB-5 | Direct investors | ✔ Yes | ✔ Yes ($800K-$1.05M) | Must create 10 U.S. jobs |
| H-1B | Entrepreneurs with a specialty occupation | ✔ Yes (with employer sponsorship) | ❌ No | Requires an employer sponsor and lottery selection |
| O-1 | Individuals with extraordinary ability | ✔ Yes (EB-1A pathway) | ❌ No | Requires extensive documentation of achievements |
How NPZ Law Group Can Help
At NPZ Law Group, we help Canadian entrepreneurs and investors navigate business immigration pathways to the U.S. Our experienced attorneys assist with:
✔ Choosing the right visa category based on your business goals.
✔ Preparing and filing visa applications to ensure compliance.
✔ Handling USCIS and consular processes for business owners and investors.
✔ Advising on long-term Green Card strategies for entrepreneurs.
If you are exploring business opportunities in the U.S. and need guidance on the best immigration path, contact NPZ Law Group today for a consultation.
Final Thoughts
While the E-2 visa remains a popular choice for Canadian entrepreneurs, other visa options may provide a more flexible and direct path to permanent residency. By exploring alternatives such as L-1, EB-5, and O-1, business owners can make informed decisions that align with their long-term goals in the U.S. market.
Thinking about starting a business in the U.S.? Let NPZ Law Group help you explore the best immigration solutions for your entrepreneurial success.
Contact Information
If you or your family members have any questions about how immigration and nationality laws in the United States may affect you, or if you want to access additional information about immigration and nationality laws in the United States or Canada, please do not hesitate to contact the immigration and nationality lawyers at NPZ Law Group. You can reach us by emailing info@visaserve.com or by calling us at 201-670-0006 extension 104. We also invite you to visit our website at www.visaserve.com for more information.