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LEDUC · E-2 FIELD GUIDE

Does the first instalment automatically establish an E-2 investor’s qualifying business purchase?

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THE DIRECT ANSWER

No. Assess the actual capital commitment, control and enterprise conditions rather than treating a first payment as the entire transaction.

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Staged purchases are not decided by a universal deposit percentage. Identify the applicant’s lawful substantial at-risk investment and ability to develop and direct a real nonmarginal enterprise. The treaty-nationality and temporary-intent conditions remain necessary; a payment receipt does not establish them all.

An investor who owns the company, hires the staff, manages the cash, signs the lease and answers for the losses is developing and directing the enterprise even though a brand agreement dictates signage, systems and prices. With equal partners, each can qualify if the agreement gives each partner a genuine role in directing the business; a fifty-percent owner who has negative control, meaning nothing can happen without their consent, can meet the test. A new enterprise can qualify if it will be real and active, and it must not be marginal, generally showing capacity beyond a minimal living or significant economic impact within five years after normal business activity begins. Ownership of half or more answers it straightforwardly; something short of half can sometimes be supplemented by operational control, such as a managerial position with genuine authority or a voting arrangement that gives the investor the decisive say.