Would it be possible for my reinvested profits to cover most of the $800,000 required to invest in an EB-5 project through a regional center?
Answers
David Raft
EB-5 Immigration attorneysPresuming you are approved for E-2 visa status as an Investor, and the discussion focuses on business profits that had been distributed to you and then meant to be used for the purpose of your subsequent investment into a Regional Center, then yes. If you are looking at reinvesting the funds into your own business, then generally, the investment amount will need to hit the $1,050,000 mark unless your business happened to be in a qualifying high unemployment census tract or otherwise in a rural area.
You will need to document that the funds you originally invested into your treaty enterprise came from lawful sources as well as that the profits you were distributed were done based on the business model being a lawful source and that you paid taxes on those profits. However, profits retained by the E-2 business and reinvested directly by the business generally do not count toward the EB-5 minimum investment.
Natalia Morozova
EB-5 Immigration attorneysThank you for your email and your question. This is a great question. The short answer is yes with caveats. I am happy to go over this with you during a consultation.
Robert D’Andrea
EB-5 Immigration attorneysYes, you can use E-2 profits for EB-5. The profits must be earned by the business, then paid out to you personally. Clear money trail from business to you to the EB-5project. Reinvested profits count once distributed. You can mix personal funds, future profits, or a personal loan. The E-2 company cannot invest directly. Proper documentation makes it fully acceptable for EB-5.
Renata Duarte
EB-5 Immigration attorneysYes, you can use profits from your E‑2 business for EB‑5, and those profits can absolutely make up most or even all of the $800,000, as long as they are already earned, lawfully obtained, and clearly documented.
Richard A Gump, Jr
EB-5 Immigration attorneysThe issue is whether you personally own and control the funds invested. Unlike the E-2 you cannot count Retained Earnings as part of the investment. Any profits your company makes must be taken out as profit or dividends, paid into your personal account, and then reinvested. Yes, there may be tax consequences, so you would need to have your CPA/tax attorney visit with your immigration attorney to ensure the investment is made from funds which you personally own and control (not your company).
Bernard P Wolfsdorf
EB-5 Immigration attorneysOnly if you do not use retained earnings.
Fredrick W Voigtmann
EB-5 Immigration attorneysYes, reinvested profits may be used for EB-5 investment purposes.
Lynne Feldman
EB-5 Immigration attorneysYes, provided you have taken the profits out of the companies as income. We can talk more if interested.
Salvatore Picataggio
EB-5 Immigration attorneysEB-5 investment funds have to be funds that the investor owns and controls. The regulations and policy are full of statements like "his or her own capital," so careful planning with an immigration attorney should help get your E2 to EB5 journey on the right track.
Robert P Gaffney
EB-5 Immigration attorneysYou will first need to have a competent attorney verify that the source of the funds used to capitalize your E-2 business can be documented in an “EB-5 compliant” manner. The source of funds requirements for EB-5 investments are generally more rigorous than those applied in the adjudication of E-2 applications.
I am assuming that to use the profits of your E-2 business you will need to recognize the profits as personal income and pay all required state and federal income taxes on the profits. Funds retained in the business remain assets of the business and do not qualify as EB-5 capital.
DISCLAIMER: the information found on this website is intended to be general information; it is not legal or financial advice. Specific legal or financial advice can only be given by a licensed professional with full knowledge of all the facts and circumstances of your particular situation. You should seek consultation with legal, immigration, and financial experts prior to participating in the EB-5 program. Posting a question on this website does not create an attorney-client relationship. All questions you post will be available to the public: do not include confidential information in your question.


