Can a Canadian Start a Business In The United States?
Are you living in Canada and have always been interested in interested starting a business in the US? Learning the different types of visas and how to start the process can be daunting. However, Canadian citizens have several options when starting or buying a business in the United States.
Keep reading to learn more about how you can start your business. We will go through the advantages and disadvantages of each option.
Visa Vs. Green Card
The main difference between a visa and a green card in the United States is that a green card equals permanent residence that allows you to become a US citizen. In comparison, a visa is a temporary, short-term permit.
Usually, a visa is obtained before you arrive while a green card is issued after arrival. Additionally, to obtain a green card, you usually are required to have been in the United States for a certain amount of time. Most often, it is at a minimum of 3 years.
E-2 Treaty Investor Visa For Canadians
Are you looking to manage the day-to-day operations of your own business in the US? An E-2 treaty investor visa is probably the most ideal option for you.
An E2 Visa allows you to live and work in the United States based on your investment in a US business. Usually, an E-2 is valid for 5 years and then can be renewed with 2-year extensions.
Benefits Of An E-2 Visa
E-2 visas are valid for as long as 5 years with the option to renew with 2-year extension periods.
The spouse of an E-2 visa holder can work in the United States as well.
Children of an E-2 Visa holder can go to school until the age of 21 in the United States.
E-visa holders can stay in the US for up to 120 days without being required to pay worldwide income tax.
Disadvantages Of An E-2 Visa
An E2 visa does not offer a direct path to permanent residency.
You will not be able to operate the business until your visa is approved.
If you lose or sell your business, your E2 visa automatically expires.
Once your child reaches the age of 21, they must obtain a visa to stay in the United States.
EB-5 Green Card
Are you interested in living in the United States without needing to run the day-to-day operations of your business? An EB-5 green card is most likely the best option for you. As of November 19th, 2019, an investment of $900,000 grants you and your family a conditional green card. With this green card, you do not need to start up a company or oversee operations.
Benefits Of an EB-5 Green Card
Immediate residency in the United States.
Spouses and any children under 21 are granted residency under the primary EB-5 green card applicant's investment.
You can live, work, study, and travel in the US without restriction.
Residency does not expire and is generally permanent.
Disadvantages Of An EB-5 Green Card
Much higher investment than an E-2 visa.
The investment quantity recently increased from $500,000 to $900,000 for TEA investments, and from $1,000,000 to $1.8,000,000 for any other investments.
Investments can be on hold for a prolonged amount of time.
Contact Us
Get in touch with us if you are a Canadian citizen considering starting a new business or buying an existing business within the United States!