My friends from college and I want to set up a company. They are U.S. citizens, so they would be founding the company, and I would be contributing capital as part of my EB-5 application once we finish our MBA next year. Given that the EB-5 program ends in 2027, would it be better to set up this business as a direct investment, or wait until the program is renewed to create a regional center and then invest as an EB-5 investor?
Answers
BoBi Ahn
EB-5 Immigration attorneysAnswer: Many factors here before a decision can be made here:
1) Direct investment requires direct creation of 10 jobs (vs for Regional Center, incidental jobs created can be counted towards the 10) - is this something your business can handle?;
2) timeline - how fast do you want to file;
3) Exit strategy - funds invested in a Regional Center can be tied up for many years and subject to exit strategy agreement for return of funds (of course with no guarantees);
4) for direct investment you have to be ready to operate the business, etc. Based on your question, it seems like direct investment may be the way to go if you have partners/friends who are willing/able to operate the company together, with consideration of the other factors stated.
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