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FOR ENTREPRENEURS · BEACONSFIELDBeaconsfield

Your ambition.Your enterprise.

An owner who already holds equipment in Canada often assumes moving it across the border counts as an E-2 investment. Sometimes part of it does. This broad overview for Beaconsfield readers separates a proposed shipment from capital genuinely committed and at risk, and connects valuation, business use, family plans, costs and sequencing. A first review should separate liquid funds, transferred value, purchase obligations and expenses that remain cancellable, then identify the document supporting each classification. E-2 funds must be irrevocably committed, exposed to commercial risk and directed to an enterprise that is not marginal. Hypothetical example: an investor is buying a mobile bicycle-fleet repair business and has paid a supplier deposit but not the vehicle conversion cost. The decision is whether the executed agreements expose enough capital to loss if the application is refused.

Talk about E-2
PurposeDevelop and direct a business
InvestmentSubstantial and at risk
Fixed minimumNo universal dollar threshold

IN THIS GUIDE · Contributing equipment already owned in Canada

Start with the E-2 eligibility and application overview

01

Show ownership before you show value

Begin with who owns each item. Personally held equipment, assets sitting on a Canadian company's books, and financed machines with a lender's security interest raise different questions. Collateral matters: a loan secured by the equipment itself is treated differently from one secured by unrelated personal assets, though not every loan disqualifies capital. Gather invoices, registrations, financing agreements and payoff statements so lawful ownership is documented before valuation is discussed. Trace every item from its current owner to the proposed U.S. enterprise, including releases required by a lender. The decision is whether the transaction changes control or leaves a claim that prevents the asset from being genuinely available to the business.

02

Two numbers, neither of them assumed

Two numbers usually exist for used equipment: what it cost when purchased and what it is worth now. Neither is assumed. Age, condition, hours of use and local market demand affect current value, and an independent appraisal or dealer valuation carries more weight than an owner's estimate. Convert amounts to U.S. dollars with a dated exchange reference, and record which items were revalued and by whom. Keep the valuation report, supporting market data and exchange-date record together. The decision is whether a reviewer can reproduce the stated U.S.-dollar value without accepting a historical invoice or an unsupported owner estimate.

03

Connect the equipment to the U.S. operating plan

Show how each asset will serve the U.S. enterprise and when it will be available. A documented commitment may support a pre-launch case; every machine need not already be producing goods. Identify title, any security interest, the proposed contribution or transfer, and evidence of delivery or installation where completed. Equipment retained for personal use or merely proposed for future shipment needs a different analysis from assets genuinely committed to the business. Match each asset to a business-plan activity, delivery step and responsible operator. The decision is whether the equipment is already committed to the enterprise's launch rather than being retained as an alternative personal asset.

04

Equipment rarely settles the whole case

Equipment alone rarely settles an E-2 case. Treaty nationality comes from citizenship, not Canadian residence, and at least fifty percent of the enterprise must be treaty-owned. The reviewer also weighs whether total committed capital is substantial relative to this enterprise's cost, whether the business is a real operating commercial venture rather than a marginal one, and whether you will develop and direct it. No fixed minimum investment applies, and temporary intent to depart when status ends remains relevant. Test the projections against fixed costs, owner compensation and the planned operating scale, while keeping ownership proof separate. The decision is whether the record supports substantiality and a non-marginal enterprise before relying on a particular amount as sufficient.

PUT THE DETAILS TO WORK

Guides for your next decision.

E-2 · BEACONSFIELD

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