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How can I use the capital from own company for EB-5 investment?

I wholly own a private limited company and have reinvested my dividends back into the company to prevent double taxation. The company pays its corporate taxes, but since I don''t take in any personal income, I don''t pay individual taxes. How can I invest in an EB-5 project through my company? Or is it mandatory to transfer funds for EB5 from a personal account? Is there any workaround since this means that I will be taxed for personal income when I transfer funds from the company to my personal account?

Answers

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    BoBi Ahn

    Immigration Attorney
    Answered on

    For EB-5 purposes, the funds invested must be personally attributed to the investor. The money can not be sourced through a third party or entity without having the investor be personally liable.

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    Barbara Suri

    Immigration Attorney
    Answered on

    In order to acquire permanent resident status in the United State the government just needs to be assured that the invested funds are from a legal source and are placed at risk in the EB-5 project.

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    Ed Beshara

    Immigration Attorney
    Answered on

    Your EB-5 Immigration attorney and tax attorney and CPA will be able to advise you. You will have to receive personal income from dividends or distributions from your company. These funds can be deposited into your personal bank account. From your personal account your funds can be invested into an EB-5 project.

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    Julia Roussinova

    Immigration Attorney
    Answered on

    A company is a separate legal entity and you may not use retained earnings (reinvested capital) as EB-5 investment. One option is to declare dividends or distribution to you under your local law, pay applicable income taxes and use funds after taxes from your personal account for EB-5 investment. If paying taxes on dividends or distribution is the ultimate concern, you may consider a shareholder or member loan from the company secured by your equity in the company. In any option, consult an experienced tax professional and an EB-5 immigration attorney to review any applicable tax consequences and to ensure the transaction is compliant with EB-5 requirements.

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    Steffanie J Lewis

    Immigration Attorney
    Answered on

    The EB-5 investment is made by an individual so that the individual has the opportunity to immigrate to the United States. There is no means by which a company immigrates, but should your company wish to establish a subsidiary in the United State, you might enter as an executive of the subsidiary, provided your original company continues to operate in your native country. The IBLF routinely represents foreign national companies that establish subsidiaries in the United States and send the executive to run the company. Not all company executive qualify and it is important to have experienced legal counsel. Otherwise, I suggest that you consult a tax counselor to advise the best means of moving your money from the company to your person so that you might make an EB-5 investment. If you are investing equipment from your foreign company to a new EB-5 company, you would need to trace the funds to establish that the equipment is your personal equipment as contrasted with equipment belonging to the foreign company.

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    Daniel A Zeft

    Immigration Attorney
    Answered on

    An EB-5 investor must invest personal funds which have been legally obtained. Funds of your company cannot be included in the EB-5 investment. Also, an EB-5 investor must pay all applicable taxes on their personal income which includes the personal funds which are invested in the EB-5 investment.

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    Charles Foster

    Immigration Attorney
    Answered on

    In order to invest in an EB-5 project using the funds that you have in the company, you would have to take funds out of the company either as a salary or a bonus or a dividend so that at some point the funds are in your personal control. In terms of the company itself making such payment directly on your behalf, that would be risky. If your personal income taxes are significant enough you may wish to try that the understanding that the Regional Center is likely to reject same and even if not, it is likely that the USCIS in adjudicating same would not approve your individual EB-5 petition since you had not made the investment directly yourself.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    An EB-5 investment must be made personally by the investor. You should consult with an experienced EB-5 attorney who may be able to provide some suggestions that will still comply with the EB-5 requirements, but may mitigate some of your concerns. One possibility would be to take a shareholder loan from the company secured by your equity/ownership in the company. Depending upon the tax laws of your home country, this might not be considered a taxable event.

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    A Olusanjo Omoniyi

    Immigration Attorney
    Answered on

    It is acceptable to use the capital from your current company to pursue EB-5 immigrant visa program. With EB5 petition, you have to document the source of your fund as required. Prior to embarking on further actions, consult an EB-5 attorney. In addition, there may be a need to seek the help of a tax preparation professional purposely to address the possibility of double taxation issue.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    If you own 100/% of the company, you might be able to take a loan. But you cannot use company funds - it would have to declare a dividend and pay taxes.

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    Belma Chinchoy

    Immigration Attorney
    Answered on

    You must invest your own capital. If you never received it from your company, then it is not your own.

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