What can count toward my EB-5 investment if I already co-own a U.S. company?

Retained earnings do not count toward the minimum investment amount required for EB-5. You would have to either (1) take those funds out of the business as income to you, which would be taxable, and then reinvest them in the company or (2) invest additional lawfully obtained capital from other sources that belong to you.

Normally your share of the profits would not be counted toward the investment. You would have to show a lawful source of funds that you earned, inherited or were gifted or loaned to you that you invested in the company and as a result created at least 10 jobs for U.S. workers. The profit from your current business normally would not count toward your minimum required investment.

In order to qualify the investment for the EB-5 program, share of the capital is not acceptable. USCIS wants the tracing of the funds from outside sources to add up to the investment amount of $500,000 or $1 million.

Investing your profit back into the company, especially if you have paid taxes on it, will work.

The profit left in the company as working capital could not be used for EB-5 investment purposes; however, if you take distribution of your share of the profit, and report it on your personal tax returns, than it could be used as your investment for EB-5 purposes. In the meanwhile, you could easily obtain an E-2 visa that would allow you and your family to legally reside in the United States.

You cannot use retained earnings as part of your investment. It would be best to take the profit, pay the taxes, and start a new business with the $500,000 if in a Targeted Employment Area.

Your earnings from the company can be counted toward the investment. You will need to pay yourself a dividend or earnings, pay income tax on it and then return it to the company as a capital contribution. Other options maybe available as well.