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How do EB-5 investors manage direct EB-5 projects?

As an investor in a direct EB-5 project, how will I manage the business operations of my project? Is it necessary for me to be physically present at the business or can manage I remotely? How long will I be required to do this?

Answers

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    A Olusanjo Omoniyi

    Immigration Attorney
    Answered on

    As a direct investment, the owner-investor is supposed to operate and manage the business on a day-to-day basis. Advisably, consult an EB5 immigration attorney on how to address the residency requirement issue associated with direct investment.

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    BoBi Ahn

    Immigration Attorney
    Answered on

    You cannot operate the business directly or work and draw salary from the invested business, unless you have a temporary/nonimmigrant visa (i.e., E-2 treaty investor, etc.) which allows you to do so while you are waiting for the permanent residence through the EB-5; however, you can hire managers to run the business and also remotely manage if need be from outside the U.S.

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    Barbara Suri

    Immigration Attorney
    Answered on

    Your conditional EB-5 authorization will allow you to be physically present and work in the U.S.

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    Charles Foster

    Immigration Attorney
    Answered on

    An EB-5 investor in a direct EB-5 project is required to have a managerial position, but that does not require you to be physically present in the business at all times. As long as you have an appropriate managerial position within the ownership structure, you could perform your management duties without being physically present. You should be able to occupy that position as long as possible and until you file the Petition to Remove Conditional Status on Form I-829B.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    If you are from one of the 80 countries that have E-2 treaty investment agreements with the U.S., it is best to get an E-2. If not, you can try and enter with a business visitor visa to set up, but not work in the business. You can hire staff but not work, so if you do not have an E-2 or another kind of work visa, you have to appoint a manager. This is why over 90% of investors choose direct EB-5 as opposed to the Regional Center EB-5 program.

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    Michael A Harris, Esq

    Immigration Attorney
    Answered on

    An investor in a direct EB-5 project is not required to oversee day-to-day business operations. One of the misunderstandings about EB-5 is that a direct EB-5 project company can be organized similarly to a regional center project. Regional centers, as you may know, benefit from the ability to use indirect job creation while direct projects must create full-time jobs. But a direct EB-5 project can also utilize a pooled-investment corporate partnership just like a regional center project. Hence, if the company for a direct EB-5 project is an LLC or LP, and there is a manager or general partner other than the EB-5 investor, then it may qualify. Before you undertake any activities, I recommend you speak with an EB-5 immigration lawyer.

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