Why Canadian Business Owners Are Moving to the United States in 2026

Key Takeaways: The number of active businesses per 10,000 Canadians has fallen to 225, below the pre-pandemic level of 240.Canadian transport truck driver employment fell 7.3 percent between March 2025 and March 2026, shedding over 23,000 jobs.The transportation sector lost a net 1,412 businesses with employees in the 12 months ending Q3 2025, retail trade lost 1,111, and wholesale lost 863.Approximately one Canadian files for insolvency every four minutes.Canadian citizens have access to three main visa pathways for relocating to the United States: the E-2 Treaty Investor Visa, the EB-5 Immigrant Investor Program, and the L-1A Intracompany Transfer Visa.

The Numbers Behind the Trend

Canadian small businesses are under significant financial pressure across nearly every sector. The data from late 2025 and early 2026 is striking, and it cuts across the industries where Canadian small business owners are most concentrated.

Trucking and logistics. The trucking industry generates roughly $65 billion annually for the Canadian economy and moves more than 90 percent of consumer goods. According to Trucking HR Canada, transport truck driver employment in Canada fell 7.3 percent between March 2025 and March 2026, with over 23,000 jobs lost. An Ontario Trucking Association survey in early 2025 found that nearly one-third of carriers had already laid off workers, with more saying they may be forced to do so as the effects of U.S. tariffs worked through the system. Operating costs for carriers have surged: the General Freight Trucking Price Index has increased by approximately 30.9 percent since 2021. At the same time, the federal government finally moved to enforce against the Driver Inc. misclassification scheme that has rotted margins for legitimate operators for years.

Restaurants and food service. The most recent quarterly report from Restaurants Canada, released in February 2026, found that 26 percent of restaurants surveyed were operating at a loss as of November 2025, with another 18 percent breaking even. Together, 44 percent of Canadian restaurants are not profitable, compared with just 12 percent in 2019. Restaurants Canada projects real foodservice sales will decline 1.1 percent in 2026, and 46 percent of operators expect profitability to worsen further this year.

Retail trade and wholesale. Retail insolvencies have been climbing for four consecutive years after a roughly 25-year decline, according to federal data. High-profile collapses in 2025 included Hudson's Bay and Saks Fifth Avenue Canada, but the pattern extends well below the headline names. The retail trade sector recorded 156 insolvency filings in Q2 2025 alone, up from the same quarter a year earlier. According to the Canadian Federation of Independent Business, Canada lost a net 1,111 businesses with employees in retail trade and 863 in wholesale trade in the 12 months ending Q3 2025.

Construction. The construction sector recorded the highest volume of business insolvencies of any industry in Q2 2025, with 210 filings according to the Canadian Association of Insolvency and Restructuring Professionals. The residential building construction segment alone accounted for a significant share of recent business bankruptcies, according to Statistics Canada data.

The broader picture. The Office of the Superintendent of Bankruptcy Canada reported that consumer insolvencies rose 10.6 percent in September 2025 alone, with bankruptcy filings up 16.8 percent month over month. CAIRP reports that approximately one Canadian files for insolvency every four minutes.

The Canadian Federation of Independent Business tracks the number of active businesses per 10,000 Canadians. That figure now sits at 225, well below the 240 recorded before the pandemic. Despite the country's population growth over the same period, the number of businesses has not kept pace. Net business creation in the past year was concentrated in just two sectors, health and education. Every other major sector either stagnated or shrank.

Several factors are driving these declines across industries:

• Rising labour costs and ongoing labour shortages

• Persistent inflation in commercial rent, utilities, fuel, and supply costs

• The ongoing impact of U.S. tariffs on cross-border operating expenses

• Reduced consumer discretionary spending

• Tightening credit conditions for small operators

The U.S. Comparison

The economic picture in the United States during the same period has been notably stronger. U.S. small business optimism, measured by the National Federation of Independent Business, has remained above its long-term average for most of 2025. The U.S. dollar has strengthened against the Canadian dollar, increasing the purchasing power of Canadian capital invested in the U.S.

For Canadian business owners, several structural differences are material:

• The U.S. consumer market is approximately nine times the size of Canada's by population

• Several U.S. states, including Texas, Florida, Wyoming, Nevada, and Tennessee, have no state income tax

• Combined U.S. federal and state corporate tax rates in business-friendly states are typically several percentage points lower than the combined Canadian rate of 26.5 percent (15 percent federal plus 11.5 percent provincial in Ontario)

• The U.S. does not have a federal sales tax equivalent to Canada's GST or provincial HST

Operating a business in the United States carries its own challenges, including healthcare costs for employees and state-by-state regulatory variation. However, for many Canadian operators in industries such as trucking, logistics, retail, hospitality, construction, and professional services, the macroeconomic comparison has become difficult to ignore.

The Three Main Visa Pathways for Canadian Citizens

Canadian citizens have a significant advantage when relocating to the United States. The U.S. maintains formal investment and trade treaties with Canada that allow Canadian nationals access to visa categories not available to citizens of many other countries, including India, Pakistan, the Philippines, and the United Arab Emirates.

There are three main pathways most Canadian business owners consider.

1. The E-2 Treaty Investor Visa

The E-2 is the most common pathway for Canadian business owners who want to operate a business in the United States.

Core requirements:

• Canadian citizenship (Canadian permanent residency alone does not qualify)

• A substantial investment in a real, operating U.S. business

• The investment must be at risk and irrevocably committed

• The business must be active and have the capacity to generate more than minimal income

• The applicant must own at least 50 percent of the business or hold operational control

The E-2 has no fixed minimum investment amount under U.S. law. The legal standard is that the investment must be "substantial" in proportion to the total cost of the business. In practice, successful applications typically involve investments in the range of $100,000 to $300,000 USD, though the exact requirement depends on the type and scale of business.

The E-2 visa is renewable indefinitely, allows the spouse to obtain work authorization for any U.S. employer, and permits children under 21 to attend U.S. schools. The legal framework is set out in 8 CFR 214.2(e) and the Foreign Affairs Manual 9 FAM 402.9.

The complexity in the E-2 application is not the form. It is meeting the legal tests around investment substantiality, source of funds, marginality, and intent. Applications that look straightforward on paper are often denied because of issues with how the investment is structured or documented. This is the area where most applicants benefit from working with experienced advisors before filing.

2. The EB-5 Immigrant Investor Program

The EB-5 is the U.S. green card by investment program. For applicants whose primary goal is permanent residency rather than temporary work authorization, this is the direct pathway.

Core requirements:

• Investment of $1,050,000 USD, or $800,000 USD if the project is located in a Targeted Employment Area

• The investment must create at least 10 full-time U.S. jobs

• The funds must come from a documented lawful source

• The applicant must demonstrate that the capital is at risk

The EB-5 grants permanent residency to the investor, their spouse, and unmarried children under 21. After meeting the residency requirements, applicants may apply for U.S. citizenship.

The EB-5 process is significantly more documentation-heavy than the E-2, particularly around the source of funds. For many applicants, this involves multi-generational financial documentation, tax records, and proof of legal acquisition for every dollar of the investment. Structuring the application correctly is critical because once filed, errors are difficult to correct.

3. The L-1A Intracompany Transfer Visa

The L-1A is often the most practical pathway for established Canadian business owners who want to expand operations to the United States rather than start a new business.

How it works:

The applicant's existing Canadian company opens a U.S. branch, subsidiary, or affiliate. The owner or senior executive then transfers to the U.S. to manage the new operation. After meeting the requirements, the executive may be eligible for an EB-1C green card, which does not have the EB-5's capital requirement.

The L-1A is particularly well-suited to Canadian business owners in trucking and logistics, distribution, retail chains, professional services, and technology.

What Canadian Business Owners Are Telling Us

In conversations with prospective clients over the past year, several themes have emerged consistently.

The first is taxation. Combined federal and provincial corporate tax rates in Ontario sit at 26.5 percent. By contrast, a U.S. business based in Texas or Florida pays only federal corporate tax at 21 percent, with no state-level addition. Over a multi-year horizon, the difference compounds significantly.

The second is labour. Canada's recent changes to temporary foreign worker policies have created acute labour shortages in industries that rely heavily on immigration-supported staffing. The trucking sector alone is projected to face a labour shortage of 25,000 drivers by 2025 and over 55,000 by 2035, according to industry estimates. Restaurants Canada reports that 57 percent of operators say recent immigration policy changes have reduced their ability to hire kitchen staff.

The third is currency. The Canadian dollar's weakness against the U.S. dollar reduces the buying power of Canadian capital. For business owners contemplating the move, this acts as a practical timeline pressure.

The fourth is generational. Many of our clients are first-generation Canadian immigrants who built businesses through years of work, and now have adult children who are looking at the U.S. for university, career opportunities, or starting their own ventures. Relocating the parent's business creates a foundation the next generation can build on.

Frequently Asked Questions

Can I keep my Canadian business if I move to the United States on an E-2 visa?

Yes. Many of our clients maintain parallel operations in both countries. Canadian permanent residency or citizenship does not lapse when you obtain an E-2 visa.

Do I need to be a Canadian citizen, or does permanent residency qualify?

For the E-2 visa, you must be a Canadian citizen, or a citizen of another country with which the U.S. maintains a qualifying treaty. Canadian permanent residency alone does not qualify. This is one of the most common misunderstandings we correct in initial consultations.

Can I bring my parents with me to the United States?

Direct dependents, defined as spouse and unmarried children under 21, accompany you automatically. Parents require a separate immigration pathway and depend on the visa category you pursue.

Can I use the proceeds from selling my Canadian business to fund the U.S. investment?

Yes. This is a common funding source. The transaction must be properly documented to satisfy USCIS lawful source of funds requirements, which is one of the most scrutinized parts of any investor visa application.

What to Do Next

If you are a Canadian citizen exploring the possibility of moving to the United States, the right starting point is a candid assessment of your specific situation. Factors that determine which pathway is appropriate include your available capital, the industry you operate in, whether you have an existing Canadian business, your family situation, and your timeline.

We offer a complimentary 30 minute consultation. The purpose is to determine which pathway, if any, fits your situation. We will tell you honestly if the timing is wrong, if you need to restructure your capital, or if a different visa category would serve you better.

To schedule, call +1 289-232-2700

Sources

• Restaurants Canada Q4 2025 Member Survey, reported by CBC News, February 2026.

• Office of the Superintendent of Bankruptcy Canada, Insolvency Statistics, September 2025.

• Canadian Federation of Independent Business, Enterprise Pulse Q3 2025.

• Canadian Association of Insolvency and Restructuring Professionals, Q2 2025 Statistics.

• Trucking HR Canada industry report, Spring 2026.

• Ontario Trucking Association coverage via Truck News, 2025 year-in-review.

• USCIS, E-2 Treaty Investors.

• U.S. Department of State, Foreign Affairs Manual 9 FAM 402.9.