Read the general pathway comparison overview
Hypothetical example: the owner of a Kent farm-equipment dealership can either open a U.S. branch of her own company and transfer herself or a manager under L-1A, or personally buy an existing U.S. dealer and enter as an E-2 investor. The choice turns on who will own the U.S. business, whether the owner herself qualifies for the transfer, how the money is structured, and whether the family eventually wants permanent residence. Each route has conditions the other lacks.
L-1A: the company expands and the person transfers
Under L-1A the U.S. entity must be a parent, subsidiary, affiliate or branch of the Kent dealership, so the Canadian company or its owners must hold the qualifying ownership of the U.S. business. The person transferred must have worked for the Kent company for one continuous year in the last three in a managerial or executive capacity and must take a primarily managerial or executive role in the United States. An owner who has run the dealership for years usually satisfies the year abroad, but her U.S. role must be management of the branch, not its only salesperson and technician. A new branch triggers the new-office rules, with a one-year initial approval. L-1A can lead toward permanent residence through the multinational-manager immigrant category if the facts support it, and L-2 spouses are employment-authorized incident to status.
E-2: the person invests and directs
Under E-2 the owner personally, as a Canadian citizen, invests in and directs a U.S. enterprise that is at least half owned by treaty nationals. Buying an established U.S. dealer with her own funds or with loans secured on her personal assets, placing the money irrevocably at risk and taking operational control satisfies the core requirements, provided the investment is substantial relative to the price and the business is not marginal. No corporate relationship with the Kent dealership is needed, and no year of prior employment is required, which makes E-2 available to a family member who has not worked for the company. E-2 renews indefinitely while the business operates but offers no direct path to permanent residence. An E-2 spouse is likewise employment-authorized incident to status.
Deciding between them
Ask four questions. Who will own the U.S. dealer—the Kent company, which points to L-1, or the owner personally, which points to E-2? Does the person who will run it have a qualifying year in a managerial capacity with the Kent company? If not, L-1 is unavailable to that person, whatever the corporate structure. How is the purchase financed—corporate funds from the Kent dealership fit L-1, while personal at-risk capital fits E-2, and a loan secured on the U.S. dealer's own assets counts for neither as investment. Does the family want permanent residence within a few years? L-1A can connect to an immigrant category; E-2 cannot on its own. Both routes can coexist where one spouse transfers and the other invests, but the ownership documents must then satisfy both sets of rules.
What else is on your mind?
Does being a business owner or director qualify me for L-1A?What employment history should an L-1 transfer review cover?What makes a new-office L-1A case different?How should an owner compare L-1 and E-2?Editorial source review: 2026-09-07. General preparation guidance, not an individual assessment.