Many people assume you need millions of dollars or a green card to own and run a business in the United States. You don’t. We recently helped an entrepreneur from Canada get an E-2 Treaty Investor visa for himself, his spouse and their two children, so the family can move to Texas and build his new business together.
The Investor and the Business
Our client is opening a new location of an established Indian grocery franchise. The brand has been trusted in Texas for more than 20 years and already has several stores in the state.
The store. The new store is about 4,500 square feet and will carry more than 15,000 products from over 1,000 brands. Customers will find:
- rice, flour, lentils and other staples
- whole spices and spice blends
- fresh produce, dairy and paneer
- dried fruits and nuts
- snacks, sweets, breads and naan
- teas and other drinks
- Ayurvedic and personal care products
The store will also have a small restaurant with seating and takeout, serving hot snacks and vegetarian curries.
The customers. Texas has one of the largest Indian American populations in the country, and the South Asian community there keeps growing. The store is aimed at families looking for authentic ingredients, busy professionals who want ready-made meals, and neighbors curious about South Asian cooking. It will also sell in bulk to local restaurants and caterers. The owners chose a high-visibility site near major roads, large employers and new housing developments.
The investment. Our client formed a new U.S. company with two business partners. The total cost to launch the store was about $550,000. Our client invested about $280,000 for a 51% majority stake, and his partners covered the rest. That gave him control of the business and let him run it day to day.
The investor. His career had been in the pharmaceutical sciences, not retail. That didn’t hold him back. His experience with inventory management, process improvement and business software, plus earlier customer service jobs, showed he had the skills to run the store well.
What the E-2 Application Had to Show
We built the application around the core E-2 requirements:
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Treaty nationality. The United States has a treaty of commerce and navigation with Canada, so Canadian citizens can apply for E-2 status.
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A substantial investment. The E-2 has no fixed minimum. Although, we typically recommend investing at least $100,000. The investment has to be large relative to the cost of the business and actually at risk. Our client’s roughly $280,000 covered more than half of the start-up cost. It went straight into build-out, walk-in coolers and freezers, opening inventory and other start-up costs.
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A lawful source of funds. Our client paid for his investment with equity from his home in Canada. We traced the money step by step with mortgage and bank records, from the home to the U.S. company. This is often the most important part of an E-2 case.
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Control of the business. His 51% ownership showed that he would develop and direct the business.
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A business that isn’t “marginal.” The five-year business plan showed steady revenue growth and new local jobs. That showed the store would do more than just support the investor’s family.
We also included evidence that the business was real and moving forward: the signed franchise agreement, the executed commercial lease, equipment and inventory purchases, and local development permits and health registrations.
The Process
We prepared the visa applications for the whole family and put together a complete, organized E-2 application for the U.S. consulate in Canada. Before the interview, we went over likely questions with our client and made sure the family had everything they needed to bring. After the interview, the family’s E-2 visas were approved.
Why E-2 Can Work Well for Families
- The spouse may work. E-2 spouses can work in the U.S. in any field.
- Children can go to school. Unmarried children under 21 come as dependents and can attend U.S. schools.
- It can be renewed. E-2 status can be extended as long as the business keeps operating and meets the requirements.
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It works with franchises and partners. An established franchise brand can help show the business is real. Partnering with others can bring a larger business within reach, as long as the E-2 investor keeps control.
Is the E-2 Right for You?
If you’re from a treaty country and want to buy, start or invest in a U.S. business, the E-2 may be a practical option. It works for franchises, restaurants, retail stores and service businesses. Every case depends on its own facts, and a well-documented application matters, especially the source of funds and the business plan. Results are never guaranteed, but a well-prepared application puts you in the strongest position.
To schedule a consultation, please reach out to me at cprescott@psbplaw.com.