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APPLICATION ANSWERS · E-2 FIELD GUIDE

St. John’s: Should the investor start operating while awaiting possession and status?

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THE DIRECT ANSWER

Do not assume either a signed agreement or an anticipated status authorizes present work.

Describe interim activity precisely

Have proposed U.S. activities and the actual permission reviewed before relying on the closing schedule. A seller’s request for help is not work authorization.

Hypothetical example: a commercial kitchen-exhaust cleaning firm investor wants to begin managing staff during the gap before the status decision. Create two calendars: one for the commercial closing and one for authorized management activity. The escrow agreement, lease and seller transition plan show what can happen before possession; status evidence governs when the buyer can actively run the operation in the United States.

The key decision is whether to postpone hands-on work or structure interim management lawfully. A common error is assuming ownership paperwork permits immediate daily control. If the launch date changes, revise the staffing, revenue and commitment evidence rather than relying on an outdated business plan.

The enterprise must remain a real operating venture, not a placeholder awaiting approval. Keep seller communications that show the agreed transition, and revise the file if a delayed closing changes who will operate the business.