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How should a U.S. citizen structure a partnership for EB-5 direct investment?

I am a U.S. citizen and want to set up a company for EB-5 direct investment with a foreign investor as a 50-50 partnership. What is the best company structure to set up with a foreign investor who does not have a social security number? Does an LLC allow for two partners, where one is a foreign national?

Answers

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    A Olusanjo Omoniyi

    Immigration Attorney
    Answered on

    Generally, entering into partnership with a foreign investor is governed by a maze of rules. The choice of company structure for foreign partners is rather limited by laws. For example, foreign nationals are not permitted to form or be a partner in an S corp. Also, although the formation of an LLC is allowed, the parties must: obtain a U.S. individual taxpayer identification number (ITIN) from the IRS if the foreign investor does not have a U.S. social security number; pay taxes on any earnings made in the U.S.; ensure the LLC that is formed with foreign partners must hold 35 percent of its profits for taxes and make sure it is paid and filed on a quarterly basis to the IRS; and file Form 1065 with the IRS to report the income, gains, losses, deductions, credits, etc., from the operation of a partnership for eventual individual taxation. Thus, consider a host of factors such as taxation, assumption of risk and the nature of industry, just to name a few. The formation of an LLC with foreign investors are common, but consult an attorney and tax experts before you proceed.

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    Agustin Ceballos

    Tax Attorney
    Answered on

    For this type of investment, a U.S. LLC could be used. Normally, to make things more efficient, the foreign investors would set up a "blocking" U.S. C corporation for their participation in the LLC. Nevertheless, a U.S. LLC does allows for two partners, where one is a foreign national. Please note that this reply does not constitute legal advice, and you would need to hire an immigration attorney to assist with the EB-5 visa application.

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    Daniel A Zeft

    Immigration Attorney
    Answered on

    An LLC can have two partners where one partner is a foreign national.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    Yes, LLCs allow foreign investors to be a member.

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    Blake Harrison

    Immigration Attorney
    Answered on

    Foreign nationals are permitted to form companies in the United States, including LLCs.

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    Belma Chinchoy

    Immigration Attorney
    Answered on

    EB-5 allows for all forms of legal entities. Your ideal structure depends on your business and priorities. Hire a business attorney who can advise properly.

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    Charles Foster

    Immigration Attorney
    Answered on

    As a U.S. citizen with a 50/50 partnership, you should choose a legal entity that is most advisable for your business. Yes, you can use an LLC even if your partner does for the immediate future have a social security number. He can obtain a taxpayer ID number (TIN) if required.

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