E-1, E-2 & L-1 Visa Options for Canadians and European Entrepreneurs
Key Takeaways
- E-1, E-2 and L-1 serve different business plans. E-1 centers on qualifying trade, E-2 on a qualifying investment, and L-1 on expansion by an established foreign company.
- Plan the company structure before filing. Ownership, control and the relationship between foreign and U.S. entities can affect visa eligibility.
- For E-2, funds generally need to be committed to the enterprise. Money that remains available in a bank account may not establish a qualifying investment.
- Match the premises to the visa and the business. An L-1 new office must show sufficient physical premises; an E-2 business needs facilities appropriate to its operations.
- A preliminary U.S. visit has limits. Entrepreneurs may be able to attend meetings and negotiate contracts, but visitor admission or ESTA does not authorize them to work for the new U.S. business
Texas and Florida continue to be two of the most popular destinations we see among international entrepreneurs who want to invest in, expand into, or establish a business in the United States.
In our U.S. immigration practice, many of these entrepreneurs are Canadian citizens or nationals of European countries that participate in the Visa Waiver Program, including Sweden and the United Kingdom.
For the right entrepreneur or company, an E-1 Treaty Trader visa, E-2 Treaty Investor visa, or L-1 intracompany transferee visa may provide a path to operating a U.S. business in Texas, Florida, or another state.
Canada, Sweden, and the United Kingdom are currently recognized by the U.S. Department of State as E-1 and E-2 treaty countries. However, eligibility for ESTA or the Visa Waiver Program is separate from eligibility for an E visa. The United Kingdom also has additional treaty-specific nationality and domicile requirements that should be reviewed carefully.
Why Are International Entrepreneurs Choosing Texas and Florida?
One obvious attraction is taxes. Neither Florida nor Texas imposes an individual state income tax. But that does not mean doing business in either state is “tax free.”
Florida imposes taxes that can include corporate income/franchise tax, sales and use tax, and locally administered property taxes. Texas imposes a franchise tax on many taxable entities, while property taxes are assessed by local taxing authorities rather than the state.
For that reason, an international entrepreneur comparing Texas vs. Florida for an E-2 visa or L-1 new office should look beyond personal income tax.
The analysis should also consider the company’s target customers, workforce, commercial lease costs, local property taxes, sales taxes, business taxes, industry regulations, access to airports and international markets, and where the owner and family actually want to live.
Immigration strategy should be coordinated with business and tax planning from the beginning.
E-1, E-2 or L-1: Which Business Immigration Strategy Applies?
Although E-1, E-2 and L-1 cases are frequently discussed together, they are legally different visa classifications.
E-1 Treaty Trader Visa
The E-1 Treaty Trader visa is generally designed for qualifying nationals of treaty countries whose U.S. enterprise is engaged in substantial international trade, principally between the United States and the treaty country.
Trade can include goods, services and technology.
An E-1 case therefore focuses heavily on the existing and anticipated volume, frequency, value and direction of qualifying trade. It is not simply an investment visa.
E-2 Treaty Investor Visa
The E-2 Treaty Investor visa is generally appropriate when a qualifying treaty-country national has invested, or is actively in the process of investing, a substantial amount of capital in a real and operating U.S. commercial enterprise.
The enterprise must meet the treaty-nationality rules, the investment must be substantial in relation to the business, and the investor generally must have the ability to develop and direct the enterprise.
The Department of State also makes an important distinction between money that is merely available and money that is actually committed to the investment: funds sitting in a bank account that remain uncommitted or revocable generally do not qualify as an E-2 investment.
L-1 New Office
The L-1 new-office classification can be useful when an established foreign company is expanding into the United States through a qualifying parent, subsidiary, affiliate or branch.
For an L-1A new-office case involving a manager or executive, the company must establish, among other requirements, the qualifying corporate relationship, the beneficiary’s qualifying employment abroad, sufficient physical premises for the new U.S. office, and a credible plan showing that the U.S. operation will support a managerial or executive position within one year.
USCIS specifically requires an L-1 new-office petitioner to establish that sufficient physical premises have been secured.
The ownership and corporate structure should therefore be designed correctly before the immigration filing. Forming the U.S. company first and trying to repair the ownership structure afterward can create unnecessary complications.
Build the U.S. Business Foundation Before Filing
One of the most important lessons we have seen in business immigration cases is that the visa application should not be treated as separate from the business launch.
The stronger approach is to build the business and immigration strategy together.
That may involve forming the correct Texas or Florida entity, documenting ownership, obtaining an EIN, establishing banking arrangements, creating a credible business plan, documenting the source and movement of investment funds, researching the U.S. market, securing appropriate premises, and beginning legitimate pre-opening commercial activities.
An immigration lawyer should also be prepared to coordinate with the client’s business attorney, accountant, tax professional, commercial realtor and other advisers.
Florida and Texas have different corporate, licensing, tax and local compliance requirements. The legal structure that makes sense from a state-law perspective must also preserve the ownership and control required for the particular immigration strategy.
Should You Open a U.S. Bank Account Before Applying for an E-2 Visa?
For many investors, establishing a U.S. business bank account is an important practical step—but the immigration analysis goes beyond simply depositing money.
A foreign entrepreneur may reasonably ask: “How can I open and fund the business before I have my E-2 visa?”
That can feel backwards, but the E-2 category is built around an investment that has already been made or is actively in the process of being made.
The government generally wants evidence showing that qualifying funds have been committed to the U.S. enterprise and placed at commercial risk. Merely transferring money into a U.S. bank account and leaving it available to withdraw generally does not establish the full investment requirement.
Depending on the case, evidence may instead include expenditures for equipment, inventory, professional services, deposits, franchise costs, commercial premises, marketing, technology and other legitimate startup expenses.
The funding strategy should be planned carefully so that the investor can document both the lawful source of the funds and the path of the money into the U.S. enterprise.
Can You Visit the United States Before the E-2 or L-1 Is Approved?
Yes, certain legitimate preliminary business activities may be permitted during an appropriate temporary business visit, but there is an important line between preparing a business and working for or operating that business in the United States.
Nationals of Visa Waiver Program countries may generally travel for qualifying business or tourism for up to 90 days with an approved ESTA. Permissible business activities can include consulting with business associates and negotiating contracts. Employment in the United States is not permitted under the Visa Waiver Program.
Canadian citizens are treated differently. Canadians generally do not need a B visa or ESTA to make a qualifying temporary business visit, although they must still establish eligibility for admission and remain within the scope of permissible visitor activities.
A carefully planned preliminary visit may be useful for meeting potential customers and business partners, negotiating contracts, researching the local market, meeting accountants and attorneys, touring commercial properties, meeting banking representatives, and completing other permissible preparatory activities.
Entrepreneurs may also use their trip for legitimate personal activities such as researching neighborhoods and schools or determining whether Texas or Florida is the right fit for their family.
What they should not do is assume that ESTA, Canadian visa-exempt admission, or a B-1/B-2 visa gives them permission to begin working in the United States.
Establishing a Commercial Location in Texas or Florida
The physical location of the U.S. business can become an important part of the immigration evidence.
For an L-1 new-office petition, USCIS expressly requires evidence that sufficient physical premises have been secured for the proposed operation. The appropriate amount and type of space depends on the actual business.
An E-1 or E-2 case is different. There is not a blanket rule requiring every treaty enterprise to maintain a traditional standalone office. However, an E-2 enterprise must be a real and operating commercial enterprise, and the premises should make sense for the particular business model.
A software consulting company, for example, may have different legitimate space requirements from a restaurant, warehouse, construction company or retail operation.
For that reason, entrepreneurs should not sign an expensive commercial lease solely because they believe immigration law always requires one. The location strategy should instead be consistent with the company’s actual operations, state and local law, zoning requirements, staffing plan and immigration classification.
Why Early Planning Matters
A strong E-1, E-2 or L-1 case often begins months before the visa application itself.
Corporate ownership, funding, contracts, banking, premises, market research and hiring plans may all eventually become part of the immigration evidence. Decisions made at the beginning of the project can therefore strengthen—or complicate—the eventual filing.
Our U.S. immigration lawyers have worked on hundreds of business and employment immigration filings, and one recurring lesson is clear: build the U.S. business with the immigration requirements in mind from the beginning rather than attempting to reconstruct the evidence immediately before filing.
Frequently Asked Questions About E-1, E-2 and L-1 Visas in Texas and Florida
Can a Canadian citizen get an E-2 visa to open a business in Texas or Florida?
Yes. Canada is an E-2 treaty country. A Canadian investor must still independently satisfy the E-2 requirements concerning nationality, ownership, investment, the U.S. enterprise and the other requirements of the classification.
Can a Swedish citizen apply for an E-2 visa?
Yes. Sweden is currently recognized by the Department of State for both E-1 and E-2 classification. Swedish citizens may also be eligible for Visa Waiver Program travel with ESTA, but ESTA eligibility and E-2 eligibility are separate legal concepts.
Can a British citizen apply for an E-2 visa?
The United Kingdom is an E-1 and E-2 treaty country, but its treaty has a special rule. The Department of State states that the treaty applies to qualifying U.K. nationals who meet the treaty’s applicable residence and domicile requirements in covered British territory. The individual’s circumstances should therefore be reviewed before relying on U.K. E-visa eligibility.
Do Canadians need ESTA to visit the United States for business?
Generally, no. Canadian citizens are generally visa-exempt for qualifying temporary business visits and do not use ESTA in the same manner as Visa Waiver Program travelers. The purpose of the trip must nevertheless be permissible, and admission is determined at the U.S. port of entry.
Can I come to the United States on ESTA to set up my future business?
Certain preparatory business activities can be permissible, including business consultations, commercial negotiations and contract negotiations. ESTA does not authorize employment or productive work for the new U.S. enterprise. The planned activities should be reviewed before travel when the distinction is unclear.
Does an E-2 investor have to open a U.S. bank account?
There is no universal rule stating that a particular U.S. bank account alone creates E-2 eligibility. A U.S. business account is often useful for establishing and documenting the enterprise, but the key immigration issue is whether the investor has made or is actively making a qualifying investment. Uncommitted funds merely held in an account generally do not satisfy that requirement.
Does an E-2 visa require an office lease?
Not necessarily. An E-2 business must be real and operating, and its facilities should be appropriate for the particular enterprise. An L-1 new-office case is different because USCIS specifically requires the petitioner to demonstrate that sufficient physical premises have been secured.
Is Texas or Florida better for an E-2 or L-1 business?
The immigration classification itself does not favor Texas over Florida. The better location depends on the company’s market, customers, industry, workforce, operating costs, tax structure, licensing requirements, real estate needs and the investor’s family considerations. Immigration planning should be coordinated with state-law, tax and business advice before the company commits significant funds.
Planning an E-1, E-2 or L-1 Business in Texas or Florida?
If you are a Canadian, Swedish, British or other international entrepreneur considering investing in a U.S. company, expanding your existing foreign business into the United States, or opening a new Texas or Florida office, early planning can make a significant difference.
The immigration strategy should be considered before major investments, ownership changes, leases or corporate restructuring are finalized.
We have successfully processed these U.S. immigration matters for over 28 years. To schedule a consultation, you may email us at info@becapitallaw.com or call / text (703) 829-5881. B&E Capital – Vassell Law Group, PC | http://www.vasselllaw.com | http://www.becapitallaw.com | Members of the American Immigration Lawyers (AILA)