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What is the cost and ideal structure to form a regional center?

I am planning to form an EB-5 regional center. I saw that a lot of regional center operators use an LLC structure.What are some other possibilities? What are the advantages and disadvantages of using an LLC comparing to other options? Also, in order to get USCIS designation, do I need to show that I will invest a certain amount of funds in the regional center as the owner?

Answers

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    A Olusanjo Omoniyi

    Immigration Attorney
    Answered on

    Choosing a business structure depends on at least two factors: assumption of risk and tax burden. With regards to LLC, advantageously, the incorporators/owners of an LLC business are only exposed to losing the amount invested in the business and they are not personally liable if the business were to fail for certain reasons. Disadvantageously, however, if the business were to do well and earn profits, which are distributed to the owners, they may be subject to self-employment taxes. These two factors make LLC to fit well with the planning and establishment of the regional center. There is no specific investment amount requirement for the establishment of a regional center.

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    Julia Roussinova

    Immigration Attorney
    Answered on

    There may be significant changes with the EB-5 Regional Center program as of March 23, 2018. You should consult an experienced EB-5 immigration attorney who specializes in regional center formation to discuss your options and requirements.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    Presently an LLC appears to be permissible although originally most were limited partnerships. There is no minimum amount that must be invested but now with the exemplar filing requirement for each project, USCIS may want to see the RC is viable.

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    Charles Foster

    Immigration Attorney
    Answered on

    An LLC structure would be the normal state corporate structure for a regional center but is not a legal requirement per se. One sets up a regional center typically either to market their own EB-5 Regional Center in which one would have their own equity investment project or in order to market third-party projects in which the regional center owner would not be required to invest any funds in a 3rd party regional center project.

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    Vaughan de Kirby

    Immigration Attorney
    Answered on

    There are specialized attorneys in the field that could advise you on establishing a Regional Center. However, note that it all could be subject to change on or before March 23rd.

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