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APPLICATION ANSWERS · E-2 FIELD GUIDE

From Sherbrooke, do spouses’ different citizenships matter to the E-2 enterprise?

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THE DIRECT ANSWER

They can matter to the relevant treaty-nationality and ownership analysis. Marriage does not combine two citizenships into one enterprise nationality. Establish the generally required at least 50% ownership by nationals of the relevant treaty country and review the principal’s actual eligibility and control.

Use the actual ownership chain

Identify direct and indirect owners and reliable citizenship evidence. Do not infer Canadian nationality from a Québec address or a Canadian corporation alone. Any dual citizenship and governing rights should be assessed on their facts rather than hidden to simplify the chart.

Draw the ownership chain through every holding entity and attach passport evidence for each relevant owner. The E-2 enterprise must have treaty nationality, and the principal investor must possess the treaty-country nationality relied upon; Canadian residence or incorporation cannot substitute for citizenship. Test whether the investor will develop and direct the enterprise through at least 50 percent ownership or genuine operational control. Trace funds that are irrevocably committed and exposed to loss, assess whether their amount is substantial relative to this business, and show a real operating venture that is more than marginal. E-2 provides no direct route to a green card. The common mistake is averaging spouses’ citizenships or voting interests instead of following legal rights.

Hypothetical example: A Sherbrooke bicycle-component retailer is owned 60 percent by a Canadian-citizen spouse and 40 percent by a spouse who is only a Canadian permanent resident. If the second spouse seeks principal E-2 status, marriage and a Québec company address do not supply treaty nationality. The couple should examine passports, voting provisions, investment ownership, and who will direct the proposed American store before assigning applicant roles or transferring funds.