I plan to invest directly in an EB-5 project instead of a regional center because it’s a family business, and I want more control. The business is U.S.-based and has been operating for the past ten years, so I trust my investment will be successful as the plan is to expand the company and hire more people. However, I will have my brothers-in-law as partners, and I want to make sure my rights are respected from the beginning. Are the legal rights for EB-5 investments the same as any other U.S. investment? Or do they have different applications?
Answers
Bernard P Wolfsdorf
EB-5 Immigration attorneysThis type of investment in an existing business presents major problems and is subject to additional rules regarding job creation and increase in net worth. We only recommend these for troubled businesses as there you can show jobs saved.
Lynne Feldman
EB-5 Immigration attorneysYour legal rights in the investment will be established by the documents you sign with your family members. If the investment is sufficient for EB-5 and we can show lawful source of funds, then you may obtain conditional residency based on your EB-5 investment in that project.
Belma Demirovic Chinchoy
EB-5 Immigration attorneysEquity investment is an equity investment regardless of it being connected to an EB/5 petition. As long as you don't violate EB/5 rules, you can structure the investment any way you want to so your rights are protected.
Michael A Harris, Esq
EB-5 Immigration attorneysAs an investor in a U.S. business, whether through the EB-5 program or otherwise, your rights as a shareholder or partner in the business are typically governed by U.S. state laws, the company's operating agreements, and any contracts you enter into with your business partners, such as your brothers-in-law.
However, when it comes to EB-5 investments, it's crucial to understand that immigration requirements also apply. The EB-5 program focuses on ensuring that your capital is lawfully sourced and creates the necessary jobs for U.S. workers. Beyond immigration law, your rights as a business owner—voting rights, profit-sharing, and control over the business—will depend on the agreements you sign with your partners. In short, your business rights are generally the same as with any other U.S. investment, but make sure to review these agreements carefully to ensure that your interests are protected from the start.
It would be best to consult both an immigration attorney and a corporate attorney to ensure your rights as a business partner are clear and secure, especially when dealing with family members in a business setting. Feel free to reach out if you'd like more guidance on the EB-5 process or structuring your investment properly!
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