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APPLICATION ANSWERS · E-2 FIELD GUIDE

Does purchasing technical equipment alone establish an E-2 enterprise?

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THE DIRECT ANSWER

No. Assess the actual real operating enterprise and all applicable requirements.

Describe the whole business

Identify ownership, control, qualifying investment, nonmarginality and the role developing and directing operations. Equipment is one part of the proposal. Hypothetical example: a Canadian artisan-bicycle workshop owner plans to buy a U.S.

wheel-building business, contribute cash, and remain the principal decision-maker while a local manager handles daily repairs. The first review should test treaty nationality, enterprise nationality, ownership, control, the actual capital commitment, and the applicant’s capacity to develop and direct operations. Ownership by people holding the relevant treaty nationality must reach at least one-half.

A passport alone does not prove that the entity satisfies that condition. Trace the money from lawful source through each account to a binding purchase or operating commitment, and distinguish money still freely withdrawable from funds exposed to the business risk. The enterprise must be real and operating, and the investment must be substantial in relation to the venture’s cost.

Its present or future capacity cannot be limited to supporting the investor’s household; it must instead show the required broader economic contribution. The file should explain why the applicant retains control even if technicians or a manager do routine work. Purchase agreements, ownership records, bank transfers, lease terms, invoices, business plan assumptions, and staffing projections should tell one consistent story.

A common failure is calling a deposit an investment when it can be reclaimed without consequence. E-2 is temporary and does not create a direct permanent-residence route. The right question is whether the actual transaction now meets every condition, not whether the concept sounds commercial.