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VAUGHAN · E-2 FIELD GUIDE

How should a second location’s investment be presented?

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THE DIRECT ANSWER

Separate new committed capital from transferred assets, ongoing operating costs and projected future spending. Do not add the first enterprise’s historical investment again simply because resources now support two locations.

Show the effect on both operations

Identify where expansion funds originate and whether the existing business retains enough resources for its obligations. Add acquisition, premises or launch costs as supported by actual documents, with review of their investment treatment. Government charges and professional work for any required immigration process belong separately.

A larger combined budget does not automatically establish coverage for a new business activity. Money moved between the two operations needs a documentary story that reads in a single direction. Show the source of the expansion funds, the account they left, the account they entered and the expenditure they became, and keep retained earnings of the first business distinct from a fresh contribution by the investor so the same dollars are not counted twice.

Hypothetical example: a warehouse automation company funds a second installation base out of operating cash and later records it as new investor capital, leaving two documents in the file that describe one transfer. Government charges and professional fees belong outside the investment figures altogether. Where a payment cannot be evidenced end to end, treat it as unproven rather than as an amount awaiting a better description.