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LORRAINE · E-2 FIELD GUIDE

Does paying through a relative's account undermine E-2 eligibility?

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THE DIRECT ANSWER

Not automatically. The question is whether the investor possesses and controls capital from a lawful source, has irrevocably committed it, and bears the risk. A relative’s account may be an intermediate step or reflect a separate gift, loan or ownership arrangement. Establish its actual role with evidence rather than assuming its effect on title.

Decide the characterisation before drafting anything

Reconstruct the contemporaneous arrangement with the family member and supporting records. Document what actually occurred; do not retroactively invent a gift or loan to fit the desired immigration presentation. Also confirm ownership of the enterprise itself: at least fifty percent must be held by treaty nationals, so a relative's contribution should not quietly become an equity stake nobody intended. Ownership on the corporate records must reflect the same story as the bank records.

The principal investor must be in a position to develop and direct the business, which is usually shown by majority ownership or, in a 50/50 case, by the operating agreement or bylaws giving that person the deciding role in management. A minority Canadian owner without such control will not qualify as an investor, although they may be employable as an E-2 essential employee if the enterprise otherwise qualifies.