Can a Canadian Start a Business in the U.S.? - Visa Franchise

Can a Canadian start a business in the U.S.? Yes, but there is an important catch. 

Canadians are allowed to own a U.S. business, but if your goal is to move to the U.S. or actively run the business, you will likely need an immigration strategy. Forming an LLC or corporation does not give an individual U.S. work authorization. 

This article explains strategies for how Canadians can start and own a business in the U.S. and how visas are a critical component to achieve this goal. This blog will discuss main options that allow one to live in the U.S. while actively operating a business, such as the E-2 treaty investor visa and alternatives such as the O-1, L-1, and EB-5 

We will also touch on business basics such as forming an LLC or corporation, getting an EIN, opening accounts, and selling to U.S. customers, but we will mainly focus on visa pathways that turn U.S. business into a real move. 

Quick Guide: Do I need a visa? 

Tasks that can usually be done from Canada:

• Form a U.S. LLC or C-Corp
• Get an EIN
• Opening U.S. bank or payment accounts
• Selling to U.S. customers remotely
• Owning a U.S. business as a passive or hands-off owner

U.S. visa likely needed to:

• Actively run day-to-day operations
• Develop and direct the business onsite
• Hire, manage, or supervise U.S. staff in person
• Deliver services while physically in the U.S.
• Move to the U.S. as the owner-operator

Pro tip: For most Canadians in this situation debating whether they need a visa, the E-2 Treaty Investor visa is the most practical option. It allows you to live in the U.S. while starting, buying, franchising, or transferring an existing Canadian business to the U.S. while traveling back and forth to Canada (if needed). 

Can a Canadian open a business in the U.S.?

If you’re searching “can a Canadian open a business in the US” or “can a Canadian start a business in the US,” you’re usually trying to confirm one of the questions pertaining to legal ownership, business formation, operations, and immigration.

• Legal ownership: Yes, Canadians can own U.S. companies.
• Formation: Yes, Canadians can register an LLC or C-Corp in a U.S. state.
• Operations: Yes, Canadians sell to U.S. customers (with the right tax setup).
• Immigration: That requires a longer answer … 

Forming a company does not automatically grant a Canadian resident work authorization. However, utilizing specific visas gives Canadians the ability to use business-related visas to satisfy immigration and business needs.

This is possible through the E-2 Treaty Investor visa, which allows you to start a new business, buy a franchise, or transfer an existing Canadian business to the U.S.

Other options may include the L-1 visa to create an “intracompany transfer” for personnel of an expanding Canadian company into the U.S. The EB-5 Immigrant Investor Program is an option for those seeking a direct path to a green card. This investment amount is larger but passive. 

The right visa strategy depends on business structure, investment level, and long-term goals; however, all these categories make it possible to live in the U.S. with work authorization. 

Do Canadians need a visa to start a business in the U.S.?

You may not need a visa to form or own the business, but if you choose to work in the U.S., that choice changes everything. If you plan to be in the U.S. to develop and direct the company, you should evaluate a visa strategy. Other tasks that likely require a visa are managing daily operations onsite, hiring or managing staff onsite, and delivering services onsite.

So, if your goal is to run daily operations in the U.S., you will likely discuss residency by investment or residency by talent to obtain a visa, depending on your enterprise. Your business setup should support that goal because the “right” entity, budget, and operating plan can differ depending on the visa route. Let’s dive into two different visa options to make this happen.

E-2 visa (investment-based route):

For Canadians who want to move to the U.S. and actively run a business, the E-2 Treaty Investor visa is often the most practical option. The E-2 is a nonimmigrant visa for nationals of treaty countries who invest in and direct a real operating U.S. business.

Key criteria of this visa include being a national of a treaty country, making a substantial investment, and coming to develop and direct the enterprise. Thankfully, the U.S. and Canada have had a bilateral treaty of commerce and navigation since 1994, granting E-2 eligibility. 

Common ways Canadians qualify for an E-2 visa

• Starting a new business: Launching a startup or service-based company with a strong business plan, solid investment, and growth potential. 
• Transferring or expanding a Canadian business: Opening a U.S. location or subsidiary tied to a Canadian company. This route may also open opportunities with the L-1.

In all scenarios, E-2 beneficiaries must own at least 50% of the business and show to U.S. consulate officials that they actively manage the company in the U.S.

Success Story: Recently, a Canadian entrepreneur and engineer, based in Calgary, sat down with the founding partner of Visa Franchise, Patrick Findaro, to discuss how he secured his E-2 visa by investing in a U.S. business with a clear operating plan and committed capital. See here for the full YouTube, which breaks down his E-2 journey. 

O-1 visa (talent-based route):

The O-1 visa is a talent-based visa for Canadians with extraordinary ability in business, entrepreneurship, technology, or other specialized fields. It allows individuals such as founders, executives, or key operators of a business to live and work in the U.S.

In contrast to the E-2, the O-1 does not require an investment, so it provides an option to those who do not meet the investment requirements because eligibility is determined on professional achievement and recognition. 

O-1 visa requirements

Applicants must demonstrate sustained recognition by meeting at least three USCIS criteria, such as:

• Leading or critical roles in successful companies
• Media coverage or industry recognition
• High compensation compared to peers
• Original contributions of significance
• Serving as a judge, advisor, or expert in the field

A U.S. employer or agent files the petition. Additionally, the O-1 beneficiary is required to work in their area of expertise while in the U.S. 

How Canadians use the O-1 visa

Canadian entrepreneurs commonly use the O-1 to:

• Relocate to the U.S. to start a new company
• Expand an existing Canadian business into the U.S.
• Operate as a founder or executive without making an E-2-level investment

The O-1 is a renewable nonimmigrant visa and is often used as a flexible alternative or complement to the E-2, depending on the entrepreneur’s background and business goals.

Success story: Recently, a former client sat down with the founding partner of Visa Franchise, Patrick Findaro, to discuss using the O-1 visa to move from Switzerland to Silicon Valley. See here for the full breakdown on YouTube.

How can Visa Franchise help?

Our Residency by Investment solution allows Canadians to gain the E-2 visa through starting a business, moving an existing Canadian business, or buying a U.S. franchise.

Our Start Your Own Business solution provides a pathway for Canadians to start their own enterprise in the U.S., where we help form the company, open your bank account, and transfer funds. Additionally, our team develops a business plan that is tailored to your immigration journey and offers full assistance in gathering and reviewing documents for your petition. 

The Franchise Visa Program™  is designed to help foreign entrepreneurs open a business within the proven structure of a franchise. This program allows an individual to pursue U.S. residency by investing in a vetted franchise while we guide you through the E-2 process from strategy to legal setup through business launch. 

In turn, our Top Talent Program is positioned around strategic support for people pursuing residency based on extraordinary ability. This program has not only aided individuals to move to the U.S. based on their credentials but also brought an existing business from Canada or started a new business in the U.S. 

For all of these pathways, Visa Franchise offers an A-Z service that includes in-house expertise covering franchise selection, creating a business plan, interview prep, document collection, and ultimately, the visa petition.

Step-by-step: how to start a U.S. business as a Canadian 

1) Choose where you’ll operate

Pick the state based on real operations (customers, employees, inventory, and offices). Forming in one state but operating in another can create extra registrations and fees later.

2) Choose a structure: LLC vs. C-Corp

• LLC: simpler ongoing admin; common for small businesses.
• C-Corp (often Delaware): common for fundraising, equity, and venture-backed plans.

Pro tip: Your cross-border tax outcome can differ a lot here; get professional advice early.

3) Form the company & registered agent

Most states require a registered agent and formation filing.

4) Get an EIN (Employer Identification Number)

You’ll need it for banking, taxes, and most payment providers.

5) Banking & payments

This is often the slowest step for non-residents. Prepare:

• Formation documents
• EIN confirmation
• Proof of identity & address
• A clear business description (website, contracts, invoices aid the process)

6) Compliance basics 

• Operating agreement/bylaws
• Bookkeeping system
• Client contracts/terms/privacy policy
• Sales tax and payroll plan (if applicable)

7) Annual maintenance

State filings, renewals, tax filings, and clean records.

Pro tip: If the business process appears complicated, it is best to contact immigration and business professionals.

Can Canadian citizens expand an existing Canadian business into the U.S.?

Yes. Most Canadian businesses expand into the U.S. in one of two ways:

1. Register the Canadian corporation to do business in a U.S. state (often called “foreign qualification/foreign registration”), or
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2. Create a U.S. subsidiary and operate through that entity.

Which is best depends on where you’ll have people, customers, inventory, and contracts, because those drive licensing, tax filings, and compliance. If you plan to relocate to the U.S. to run the expansion, align the expansion plan with a visa strategy early (instead of treating immigration as a later step).

Does starting a U.S. business help with U.S. citizenship?

According to USCIS, starting a business does not directly grant citizenship. Citizenship is a separate process that typically requires permanent residence first (green card), then meeting additional eligibility requirements over time. 

A popular mechanism on the pathway to permanent residency and eventual citizenship is the EB-5 Immigrant Investor Program. This program allows foreign investors to obtain a U.S. green card by investing in a qualifying U.S. business that creates at least 10 full-time jobs for U.S. workers. 

This usually requires $800,000 to $1,050,000 in investment, but the EB-5 is a direct pathway to residency, unlike the O-1 or E-2. 

FAQ 

Can a Canadian citizen do business in the USA?

Yes, Canadians can sell to U.S. customers and own U.S. businesses. If you’ll work in the U.S. to run the business, evaluate a visa path like E-2 or O-1 depending on your situation.

Can a Canadian start a business in the USA without living there?

Often yes for formation and ownership; the common friction points are banking, tax setup, and whether you’ll be physically operating in the U.S.

Can a Canadian move a Canadian business to the USA without living there? 

Yes, most register the Canadian corporation to do business in a U.S. state as a foreign entity or create a U.S. subsidiary and operate through that entity. However, visas such as the E-2 are likely needed to run operations from the U.S..

Our Start Your Own Business program allows you to gain U.S. residency by starting or expanding your own business in the U.S. while being guided through the entire E-2 visa process, from strategy and legal setup to business launch.

Does starting a U.S. business help with U.S. citizenship?

No, citizenship is a separate process from moving to the U.S. to own or operate a business within the U.S.

However, renewable non-immigrant visas and green cards can be tied to this process. The EB-5 Immigrant Investor Program provides a direct pathway to permanent residency through investment for several Canadians. 

What’s the most practical path if I want to move to the U.S. to run my business?

Common starting points are E-2 (investment & operating a business) or O-1 (extraordinary ability); EB-5 offers a separate route that yields higher, passive investment but yields a direct pathway to a green card. 

Not legal or tax advice. Cross-border structures can get complicated fast; consider a U.S./Canada tax professional and an immigration lawyer if you’ll be operating in the U.S.