According to a report by the Dais at Toronto Metropolitan University, a study suggests a significant wage gap between Canadian and American tech workers.
The U.S. tech workers seem to earn, on average, 46% more than their Canadian counterparts when adjusted for exchange rates and cost of living. This is an approximate $40,000 difference!
This gap highlights the demand for IT and tech services in the U.S., driven by a highly competitive market willing to pay higher wages to attract top talent. U.S. companies value IT expertise, and this demand creates an attractive opportunity for tech professionals and entrepreneurs to thrive.
Starting an IT Business in the U.S.
For IT professionals in Canada, this compensation gap is revealing of the growth in the U.S. market. Launching an IT business in the U.S. could allow you to leverage this demand while taking advantage of the higher rates clients (U.S. companies) are willing to pay for services like software development, cybersecurity, cloud computing, and IT consulting.
With a stronger client base willing to pay premium prices, you could benefit financially.
Launching an IT business in the U.S. is an attractive opportunity for Canadians already working in the IT or tech industry. The E-2 Investor Visa offers a pathway for skilled Canadian professionals to leverage their expertise and establish a business in the U.S. tech market.
How to Apply for E2 Visa with an Information Technology (IT) Business
- Meet the E-2 Visa Eligibility Requirements
- Treaty Country Status
Ensure you are a Canadian citizen, as Canada is an E-2 treaty country.
- Substantial Investment
While there is no minimum amount specified, investments of $100,000 or more are generally recommended to demonstrate financial commitment.
“But I don’t need that much to start an IT business!”
We do hear this response very often, which is why we have another article about this topic: Minimum Investment For E2 Visa
- Ownership
The E2 investor must have 50% or more ownership in the business and hold the highest managerial position.
- Prove the Source of your Investment Funds
You must demonstrate that your investment funds are from legal and traceable sources. This may include savings, business profits, proceeds from asset sales, gifts from family, or loans secured against personal assets.
- Register a U.S. Business Entity
Register your IT business in the state where you plan to operate. Open a U.S. business bank account and allocate funds, which may include the items listed in #4 below.
- Make Your Investment (Start Spending Money)
For an IT startup, in additional to business registration costs from above, examples of other costs may be:
- Office space
- Infrastructure
- Equipment
- Product development
- Software licenses
- Marketing
- Salaries for initial hires
- Vehicle (if appropriate)
- Develop a Detailed Business Plan
Visa Officers often require a comprehensive business plan that outlines:
- The nature of your IT business (e.g., cybersecurity, SaaS, web or software development)
- Market analysis demonstrating demand for your services in the U.S.
- Financial projections showing profitability within 5 years
- A hiring plan indicating the creation of jobs for U.S. workers.
- File the Required Forms
Submit your application to the U.S. Consulate in Toronto:
- DS-160: Nonimmigrant Visa Application
- DS-156E: Treaty Investor Application
- Support Letter explaining your E-2 visa eligibility
- Detailed evidence of business set-up, investment, fund sources, and operations
- Attend the Visa Interview
Once the consular staff is satisfied with their initial review of the application documents, you’ll normally be invited for an interview.
- Begin Operations
Upon visa approval, you can move to the U.S. and start running your IT business.
For more details: E-2 Investor Visa Process for Canadian Applicants
Potential Green Card Opportunities
The E-2 visa requires non-immigrant intent, meaning applicants may not have immigration intention when applying or entering the U.S.
However, after spending a period of time in the U.S., circumstances may change, and individuals may pursue opportunities for permanent residency through other available paths.
For example, an E-2 Investor running an IT consulting firm that provides services to a U.S. company could impress their client with exceptional work. In such cases, the U.S. company might offer direct employment along with green card sponsorship as an option.
This has happened for some of for some of our prior E-2 clients.
Below are 3 common green card options for E-2 visa holders:
- Employment-Based Green Card (EB-1, EB-2, and EB-3 Categories)
If a well-established U.S. company offers sponsorship for permanent employment in a field related to the applicant’s qualifications, an employment-based green card may be an option. There are 3 categories within this pathway:
- EB-1: For priority workers such as individuals with extraordinary abilities or multinational executives
- EB-2: For individuals with exceptional ability or an advanced degree in their field
- EB-3: For skilled workers or professionals with at least a bachelor’s degree in their field
Employment sponsorship may also extend to the E-2 visa holder’s spouse, depending on their qualifications and employment offer.
2. National Interest Waiver (NIW) Green Card under the EB-2 Category
The National Interest Waiver is available to individuals whose business or work benefits the U.S. on a national scale. If your E-2 business significantly contributes to fields like science, technology, healthcare, or economic development, you may qualify for the NIW green card. This pathway does not require a sponsoring employer, making it an appealing option for entrepreneurs whose ventures align with broader U.S. national interests.
- EB-5 Investment Green Card
The EB-5 visa is designed for investors who make substantial investments that create jobs for U.S. workers. There are 2 primary types of EB-5 investment opportunities:
- Direct EB-5 Investment: Requires a minimum of $1.05 million (or $800,000 in high-unemployment or rural areas). The business must create at least 10 new full-time jobs for U.S. citizens or permanent residents within two years.
- EB-5 Regional Center Investment: Allows investors to contribute $800,000 to a designated regional center focused on local economic development.
Starting an IT business with an E-2 visa and eventually transitioning to a green card could position you for success in the highly lucrative U.S. tech market. Whether you choose to scale your business for an EB-5 green card or partner with a company for sponsorship, the potential for professional and financial growth in the U.S. is immense.
If you’re ready to explore these options, consult with an experienced E-2 attorney to determine the best course for your unique situation.
For more details on the wage gap and tech compensation trends, read the full report by the Dais at Mind the Gap: Compensation Disparity Between Canadian and American Technology Workers.
Please Note: This blog is intended solely for informational purposes and should not be regarded as legal advice. As always, it is advisable to consult with an experienced immigration attorney for personalized guidance based on your specific circumstances.
