Show investment capital and business operating costs separately from government filing charges, professional services, and family or travel expenses, and confirm current official fees and the exact scope of each professional engagement before committing funds.
Avoid calling every payment qualifying capital
Ask which costs are actually part of the investment analysis and which are unrelated preparation expenses. Review contractual refund or cancellation terms rather than assuming that all money spent automatically helps eligibility, and keep independent commercial diligence, such as a lease or franchise disclosure review, as its own budget line.
Divide the worksheet into qualifying investment, operating reserves, transaction diligence, immigration preparation, travel, and family expenses. E-2 substantiality uses proportionality, not a fixed dollar minimum, so relate committed capital to this enterprise’s purchase or establishment cost. Investment money requires irrevocable commitment and genuine exposure to loss; refundable, uncommitted, or merely available funds may not carry the claimed weight. Confirm the investor’s Canadian citizenship, treaty nationals’ ownership of half or more, and development-and-direction authority before major expenditure. A frequent mistake is counting every professional fee or cash reserve as investment without examining its purpose and commitment terms.
Hypothetical example: an Ottawa bicycle-component wholesaler budgets an American distribution company, warehouse deposit, inventory orders, customs advice, and family travel. The owner should label which payments establish the enterprise and which purchase independent legal or commercial services. A low-cost operation is assessed proportionally, but that does not create a universal minimum or excuse tentative funding. Reviewing cancellation clauses before transfer prevents an estimate from overstating capital truly at risk.