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AURORA · E-2 FIELD GUIDE

Can family income compensate for weak acquisition results?

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THE DIRECT ANSWER

A spouse’s potential employment does not replace evidence that the acquired enterprise is more than marginal. Review the business’s own current or supported future capacity after the purchase, including its changed cost structure.

Keep two financial assessments

Prepare the household budget separately from the acquisition forecast. A spouse and unmarried children under 21 can seek E-2 dependent status; a spouse in valid E-2 or E-2S status generally has work authorization incident to status, whereas children do not. If family members will work in the acquired business, explain their actual roles and check each person’s authorization before work begins.

Keep two assessments apart. The enterprise's capacity is measured by what the business itself can generate, and household income from another source does not repair a business that cannot produce more than a minimal living for the investor and family. Conversely, the household's ability to absorb a difficult first year is a real planning question and deserves its own analysis.

Model both. Where a spouse expects to work, treat that as requiring its own confirmation rather than as a given, and establish what documentation an employer would need before employment begins. Where a spouse will work in the acquired business, record their role and terms properly, and avoid presenting family labour as though it demonstrates the enterprise's staffing capacity.

Children may accompany as dependants while unmarried and under 21, without work authorization in that status.