IN THIS GUIDE · Two Coaldale electricians buying a U.S. contracting business, and the questions to put to the seller
Start with the E-2 eligibility and application overview
Ask what happens to the trade licences on closing
A contracting business usually operates under a licence held by a qualifying individual, together with bonding and insurance that depend on it. Ask the seller who holds each credential, whether it transfers with the company or leaves with the owner, what the state requires of a new qualifying party, and how long that takes. A purchase that lands a real, operating enterprise whose licence walked out the door is a business problem and an immigration problem at once.
Ask which contracts survive a change of ownership
Request the customer agreements and read the assignment and change-of-control clauses. Maintenance contracts that can be cancelled on notice when the company changes hands are worth less than the seller's revenue summary suggests, and the projections that support the enterprise being more than marginal depend on them. Ask which customers have been told, which have consented, and what the seller expects to lose.
Ask what the employees have been promised
Nine employees is the asset being bought. Ask for the payroll register, the terms of employment, outstanding vacation and overtime liabilities, and whether any key person has an agreement that pays out on sale. Ask directly whether the foreman intends to stay. Employment records also support the enterprise's operating character and the case that it does more than provide a living for the buyers and their family.
Ask where the money goes and when it is beyond recall
The investment has to be irrevocably committed and at risk. Establish the escrow terms, what releases the funds, what happens if an immigration application is refused, and which purchased items could simply be sold back. Where the buyers intend to borrow, distinguish borrowing they are personally liable for from a loan secured by the assets of the business being bought, because the latter is treated differently.
Test substantiality and marginality against this business
The nursery qualifies as a Canadian enterprise only while treaty nationals own at least fifty percent of it. Marginality is different: the enterprise must have the present or future capacity to generate more than a minimal living for the investors or to make a significant economic contribution, with future capacity generally realizable within five years. Substantiality is judged in proportion to the total cost of purchasing an established business of this kind, not against any fixed figure, and no universal minimum exists. If part of the funding is borrowed, the security matters: debt secured against the business assets is not viewed the same way as personal collateral, so have the structure reviewed.
Sources reviewed 2026-09-07. This guide covers a preparation focus; it is not an individual eligibility assessment.