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What are my options for involvement in my EB-5 project?

I am looking to invest in a business through the EB-5 program in order to receive my green card and move to the United States. I currently have a business to run in my home country so I cannot be actively involved in the EB-5 project. Will this be a problem and what should I do? How involved do I have to be in the business?

Answers

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    Reza Rahbaran

    Immigration Attorney
    Answered on

    If you want minimal participation in the business, then you may want to invest through a regional center project. You will be a limited partner in the project and have minimal involvement in the business operations.

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    Lei Jiang

    Immigration Attorney
    Answered on

    It normally will not be a problem, especially if you invest in an EB-5 regional center.

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    Rachel Lew

    Immigration Attorney
    Answered on

    If you do not intend to be actively involved in the new commercial business that qualifies you with U.S. immigration benefits, you can invest through an U.S. approved regional center''s project. By doing so, you do not need to be actively involved in managing the business nor live close to that business. There are many regional centers'' projects in the market. You can retain a financial due diligence expert and an immigration attorney specializing in immigration due diligence area to find out which regional center''s project is most suitable for you.

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    David Morris

    Immigration Attorney
    Answered on

    Under the EB-5 Program regulations, investors must serve in either (a) in the day-to-day management of the Company, or (b) in a more limited policy role. The rules specifically allow for an investor to serve as a "limited partner" as described in the Uniform Limited Partnership Act (ULPA). As a limited partner, sometimes called a "silent partner," you have the opportunity to live and work anywhere in the United States and still comply with the EB-5 Program. It only requires you participate in certain policy matters relating to the company''s business. Typically, this can be done by mail and email, and without need to even visit the company. Our law firm regularly helps more than 150 investors apply for EB5 immigration benefits every year.

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    Ying Lu

    Immigration Attorney
    Answered on

    Investors can either participate into the day-to-day management of the new commercial enterprise or just have the policy making function. If you are not able to manage the business on a daily basis, make sure that you will take part into the policy making process.

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    Ed Beshara

    Immigration Attorney
    Answered on

    Your goals can initially be accomplished by investing in an EB-5 regional center project. In this type of investment your funds are pooled with other investors funds are then are committed to the operation of a new commercial enterprise which is mainly managed by an experienced group of directors and managers. However once you obtain your conditional permanent residency it should be your intent to consider the United States your home and spend most of your time in the United States. If you visit your original home country, it should only be for short periods of times as a visitor either for visiting family or friends or briefly doing business. You will need to plan your strategy with experienced immigration attorneys and international tax attorneys.

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    Jeffrey E Campion

    Immigration Attorney
    Answered on

    Hello. The involvement requirement of the EB-5 classification is somewhat flexible. In fact, there is a safe harbor under the CIS regulations that allow you to be simply a limited partner is a partnership. Those responsibilities are very limited and most RC projects are set up this way.

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    Boyd Campbell

    Immigration Attorney
    Answered on

    If you do not want to be actively engaged in management of the enterprise, you might consider a project hosted by a regional center.

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    Ebiho Ahonkhai

    Immigration Attorney
    Answered on

    Purely passive investment is prohibited. This means that, an investor must engage in the "management" of the enterprise. By way of example, many regional centers are limited partnerships. If you, as investor, are a limited partner and the partnership agreement provides that investors have the rights and obligations ordinarily granted to limited partners under what is known as the Uniform Limited Partnership Act, you will be considered by USCIS to be sufficiently engaged in the management of the enterprise. As a practical matter, you can satisfy this requirement without committing to a specific amount of time and without involvement in the daily management of the enterprise, as these functions are performed by the general partner. We can offer you a brief complimentary telephone consultation to discuss your options in this regard.

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    Fredrick W Voigtmann

    Immigration Attorney
    Answered on

    You must be involved in the business, at least in a policymaking role. The USCIS has approved many EB-5 cases where the new commercial enterprise was a limited partnership and the EB-5 investors were limited partners, with only a minimal role in the business. Furthermore, using a limited liability company where the EB-5 investor is a member (can vote, attend meetings, etc.), but the business is run by a managing member (not an EB-5 investor), also works.

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    Margo Chernysheva

    Immigration Attorney
    Answered on

    If you are doing regional center investment you do not have to be involved at all. If you are doing direct investment, you have to be involved at least in ''high level'' decision making. If you are still running a company abroad will you be able to come back to US every 180 days to not lose your residency after you received it? Those are all questions you need to have answers to before you apply. Hire an experienced immigration attorney to assist you.

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    Rohit Kapuria

    Immigration Attorney
    Answered on

    Your best bet is to invest in a regional center project which is ideal for passive investors as opposed to a direct EB-5 project which would require a more active role. Of course, you must still maintain some sort of managerial power for both opportunities but based on your question, the regional center route is the best way to go.

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    Kripa Upadhyay

    Immigration Attorney
    Answered on

    You do not have to be involved to the same extent that would be required to run your business in your home country. The regulations require you to be involved in the EB-5 investment, but generally speaking, that can be fulfilled even as a member of the board or executive team, which would not require a full 8-10 hour work day five days a week.

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    Marjan Kasra

    Immigration Attorney
    Answered on

    In your situation I recommend investing in a regional center project where your involvement would be minimal. There are over 300 of these projects available. You would have to pick very carefully though and only after consulting a qualified investment advisor, and an accountant in order to financially evaluate a given project. And most importantly consult with a qualified EB-5 attorney to handle the legal (not financial) aspects for you.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    If you do your own project here you will need to be here to develop and direct it passive investments will not work. If that is not possible then I would recommend investing in a regional center where your role is more passive.

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    Michael A Harris

    Immigration Attorney
    Answered on

    It really depends on the form of business entity that you are investing in. Most regional center investments have you join as a member of an LLC or a limited partner of an LP. Your involvement in either of those two cases is typically limited to common duties for limited partners and not very active involvement in the day-to-day business decisions of the investment business you select. You should consult with an experienced EB-5 attorney before you make your investment.

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    Jinhee Wilde

    Immigration Attorney
    Answered on

    Many businessmen who choose the EB-5 route to immigrate mainly for their family choose to invest with a regional center with a good track record of green card approval so that they do not have to participate in day-to-day management of the business. If you need to continue run your own business, you should consider investing in a good regional center project and then obtain a re-entry permit, after getting your green card, to stay in your country up to 2 years without having to give up running your business back home.

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    Shahzad Q Qadri

    RC Creator
    Answered on

    That should not be a problem especially if you invest in Regional Center, in which case you are more of a "passive" investor. Depending on your investment, the company can be structured where you involvement can be minimal.

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    Anthony Korda

    Immigration Attorney
    Answered on

    If you invest in a regional center project that is structured as a limited partnership you will be regarded by USCIS as sufficiently engaged in the management of the company if you exercise the rights and duties of a limited partner. This effectively means that you need not be involved in the day to day management of the project. Other corporate structures may also qualify, although more management involvement may be required. You should take advice from a qualified and experienced immigration attorney before investing in any EB5 project.

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    Kirk A Carter

    Immigration Attorney
    Answered on

    I would recommend that you invest in one of the regional centers. The EB-5 program permits both active investment in a business which you actively direct and control, and quasi-passive investments where you pool your investment with others and have little to no involvement in operating the business. To avoid the restriction on pure passive investments the regional center programs are set up so that each investor is a limited partner, which USCIS has determined to be sufficient involvement to meet the active investment requirement. There are hundreds of regional center programs in the United States. Each involves the pooling of your investment with others for a particular purpose some are pooled and invested in real estate, some in operating businesses, and some are structured as loans and loaned to fund either private or quasi government projects. The benefit of investing with a regional center is that they all have to undergo USCIS (governmental) scrutiny to be established, most qualify for the reduced $500,000 investment (rather than the $1 million requirement) and many have a long track record of success in creating the required number of jobs. The down side is that there are so many that it is often difficult to choose the best one for you. They also charge a substantial subscription fee, which varies from $35,000 to $75,000 to participate in them. This is a non-refundable amount which covers marketing and other costs of the program. Included in that fee is a referral fee which we seek to use to either reduce your total subscription cost or apply to your legal fees with us or other providers. To help you find the right program we were work an investment advisor in New York who assesses your investment objectives and makes recommendations based on his evaluation of various programs. We are not financial advisors and cannot provide investment advice. If you would like to explore this option further with me, please contact me at the below address.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    Your involvement in the new commercial enterprise is defined by the EB-5 rules and regulations as decided by USCIS. While you will probably not be required to be involved in day-to-day operations, you will have the rights and responsibilities as a shareholder in the business, including voting on company matters.

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