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Do I have to be involved in the company that receives my EB-5 visa investment?

I want to invest in an LLC located in the U.S. to get my EB-5 visa. The problem is the company does not want my involvement as an officer or on the board of directors with voting rights. And I personally do not wish to be engaged in the company either since I have my own business to run. What are my options? How can I just invest? Are there exceptions to 8 CFR 204.6(j)(5)?

Answers

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    Reza Rahbaran

    Immigration Attorney
    Answered on

    You cannot be a passive investor. For further information please contact Rahbaran & Associates.

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    Daniel A Zeft

    Immigration Attorney
    Answered on

    Most EB-5 projects associated with an EB-5 regional center involve the foreign national investor becoming a limited partner in limited partnership. As a limited partner, the foreign national is not involved in making decisions which affect the management of the business project.

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    Boyd Campbell

    Immigration Attorney
    Answered on

    Yes, unless you invest in an EB-5 investment project through a regional center. In that case, you would most likely be a limited partner and would exercise the duties and responsibilities set out in a state''s uniform limited partnership act.

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    David Hirson

    Immigration Attorney
    Answered on

    There are certain regulated carve outs that might work. If you became a limited partner in a limited partnership then generally you will have very little responsibility on a daily basis. If you are given a membership interest in an llc with rights similar to a limited partner than you could also qualify for satisfying the active management requirements. Please check if the business exists already that your funds will create 10 qualifying jobs. This question can lead you down many paths so I advise you to hire competent EB-5 experienced lawyers or your hopes and aspirations could end very unhappily for you.

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    Charles Raether

    Immigration Attorney
    Answered on

    Obviously, what constitutes "involved" is a very broad question that requires assistance from an experienced attorney. And that attorney''s response will be based in large part on the specific facts surrounding the investment in question. To get you in the right direction, I''d say first of all there is no "exception" to 8 CFR 204.6(j)(5). However, you need to carefully read that provision and know how it is applied. Using a limited partnership instead of an LLC would be a first step to better protect yourself in this context. Moreover, policy making is a general obligation that is often used by limited partners (investors) in these contexts that often provides adequate freedom to the investor to pursue other business interests while also meeting the requirements under the EB-5 program. By using an LLC structure, you are somewhat limiting yourself as to possible structures to meet these requirements.

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