IN THIS GUIDE · Start a business from nothing and still show it is substantial and not marginal
Start with the E-2 eligibility and application overview
Committing money to a business that does not yet exist
Hypothetical example: a Torbay contractor with a Red Seal in plumbing and gasfitting and savings from a decade of residential work forms a U.S. company to offer heating and cooling service in a mid-sized U.S. city. Nothing is at risk while the money sits in the new company's account. It becomes at risk when it is spent or irrevocably committed: a signed commercial lease, purchased service vans and diagnostic equipment, licensing and insurance bonds paid, a deposit on inventory, and a signed contract for a dispatch system. The officer looks for what has been spent and what is contractually owed; a reserve counts only if genuinely needed for operations and committed to them.
Substantial for a start-up means enough to make it run
Without a purchase price to compare against, substantiality is measured against the cost of establishing the enterprise: what it actually takes to open the doors, which the business plan must itemize. An investor who has funded that full cost has invested one hundred percent of it. Under-capitalizing to keep money back weakens the file twice, once on substantiality and once on the plan's credibility. Marginality is the sharper problem for a start-up: the officer must be satisfied that the company will, within roughly five years, earn more than a living for the contractor's family or make a significant contribution by employing others. A hiring schedule with dates and wages is the evidence.
Licensing, ownership and direction
HVAC and plumbing work is licensed at state or local level, and a newly arrived investor may not hold the licence on day one. The plan should say who will, whether the contractor will sit the exam, and how the company operates in the meantime. Ownership must be at least half Canadian and the contractor must develop and direct the company; an arrangement in which a local licensed partner owns half and runs the crews should be restructured before the interview. An E-2 spouse is employment-authorized incident to status; children may study but not work and age out at 21. E-2 is renewable but leads nowhere on its own toward permanent residence.
What can be done before status is granted
Forming the company, signing the lease, buying equipment and hiring a licensed technician are investment activity the contractor may carry out from Canada or on visitor trips. Working in the business before admission in E-2 status, whether servicing customers or running crews, is not. Fees are the Department of State visa application and any reciprocity fee, or USCIS fees for a change of status.
Sources reviewed 2026-09-07. This guide covers a preparation focus; it is not an individual eligibility assessment.