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ST. ALBERT · E-2 FIELD GUIDE

Does an existing E-2 enterprise automatically qualify every new location?

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THE DIRECT ANSWER

No. Review the actual expansion and any change in entity, ownership, funding or operations. The prior decision is evidence of an earlier arrangement, not a blanket approval of future business activity.

Assess the business that will operate after expansion

Confirm treaty nationality, development and direction, substantial lawful capital committed at risk and a real nonmarginal enterprise. Identify whether the second location uses the same entity and how resources are allocated. Do not assume the location alone triggers a particular procedure; the complete change and current record determine what needs review.

The principal investor must be in a position to develop and direct the business, which is usually shown by majority ownership or, in a 50/50 case, by the operating agreement or bylaws giving that person the deciding role in management. Irrevocable commitment and exposure to loss are settled by how the purchase money actually moves, and substantiality by whether the committed sum is large in proportion to what this enterprise costs to buy or establish — there is no fixed figure. If external providers control the essential commercial activity, examine whether the proposed investor genuinely develops and directs the enterprise rather than simply receiving a return.