Can I sell equity of an EB-5 enterprise and re-invest to qualify for EB-5? - EB5Investors.com

Can I sell equity of an EB-5 enterprise and re-invest to qualify for EB-5?

I am a recent F-1 graduate on OPT. I plan to incorporate a for-profit company in August 2020 and work there to maintain my status for another year. If I sell some portions of my personal authorized shares/equity as the founder in exchange for funds worth over $1 million, and re-invest it back to my company as an investment to expand the product or recruit more people, would that qualify as an investment for the EB-5 program?

Answers

A Olusanjo Omoniyi

A Olusanjo Omoniyi

Immigration Attorneys
Answered on

Yes, it would qualify. However, you need a detailed plan to avoid running into immigration issues such the possibility of questioning your status as an F-1 student with OPT, which bars self-employment Advisably, consult an EB-5 attorney to plan the details and to avoid grounds for objections.

Bernard P Wolfsdorf

Bernard P Wolfsdorf

Immigration Attorneys
Answered on

No, it will most likely not work. First, self-employment on first period OPT is not banned but certainly not encouraged but the problem is you need to create 10 full time jobs, and moreover you have to invest your money. You may want to consider investing the funds in another EB-5 project, such as a regional center project, if it''s your own money.

Lynne Feldman

Lynne Feldman

Immigration Attorneys
Answered on

I would need details but if you take money out and pay taxes on it so it becomes your personal money then it should work.

Belma Demirovic Chinchoy

Belma Demirovic Chinchoy

Immigration Attorneys
Answered on

This could work. For EB-5, you will need to source the funds to the original investment funds and the sale will need to be fmv. You should work with an EB-5 attorney to set up the entities.

Dale Schwartz

Dale Schwartz

Immigration Attorneys
Answered on

It might if it were structured correctly.

Salvatore Picataggio

Salvatore Picataggio

Immigration Attorneys
Answered on

There are ways to plan for your personal investment of funds from a variety of sources. With an immigration attorney on your team you''ll plan from the beginning on how to meet the requirements later.

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