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How can I partner with a U.S. citizen in a direct investment and apply for EB-5?

My U.S. citizen friend and I are considering investing $500,000 each in a business located in a TEA. I want to use my part of the business to apply for EB-5 and get my green card. Are there any issues doing this? How should we structure the business to make it EB-5 compliant?

Answers

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    BoBi Ahn

    Immigration Attorney
    Answered on

    That should not be a problem. You should make sure you are credited for all jobs created by your portion of the investment so that you meet the requisite 10 jobs element, as well as be an active owner, etc.

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    Lynne Feldman

    Immigration Attorney
    Answered on

    This can work. A typical structure is a limited partnership but it depends on state corporate and tax law as to what might be best.

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    Dale Schwartz

    Immigration Attorney
    Answered on

    There is no reason why your investment could not be the basis for an EB-5 application, no matter that your friend is also an investor. However, if you are buying an existing business in a TEA, you must hire 10 more employees (above the present number the business already has), unless the business is a "failing business." If a failing business, you can count the employees who already work there as jobs you have "saved." You should have a good EB-5 immigration lawyer help you with this!

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    Michael A Harris, Esq

    Immigration Attorney
    Answered on

    This can be readily done. Your U.S. citizen friend can be your partner in the company, and you, as the sole EB-5 investor, will receive credit for all of the jobs created as a result of your combined investment. You will have to contribute at least $500,000. There are various corporate forms that you can structure this under, and you will have flexibility in choosing them. An experienced EB-5 specialist can help.

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    Belma Chinchoy

    Immigration Attorney
    Answered on

    Yes, this is possible. Any legal structure - LP, LLC, corporation - is OK for EB-5. The percent of ownership is flexible for EB-5, too. EB-5 requirements address management rights and involvement, job creation, feasibility, the nexus between the jobs and investment. Your first step should be to retain an EB-5 attorney who can advise you on how to proceed and guide the work of the third parties in the preparation of the required documents.

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    Mark AM Catam, Esq

    Immigration Attorney
    Answered on

    Yes, this is possible. It is imperative that you seek the counsel of an experienced EB-5 attorney who would provide you guidance and strategy on how to go about structuring it.

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    Phuong Le

    Immigration Attorney
    Answered on

    Most immediate issues are that you will need to put together an EB-5-compliant business plan which will include a financing structure, employment projections, hiring timeline, market data, etc. You will need a consultation with both an attorney and a business plan writer.

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    Julia Roussinova

    Immigration Attorney
    Answered on

    You can certainly do this. A new commercial enterprise must principally do business in a TEA and your EB-5 investment will need to create at least 10 full-time positions (at least 35/hours a week). A new commercial enterprise may be structured as a limited liability company and you may be in a limited member/policy-formulation role to qualify for EB-5 unless you have EAD. You should consult an experienced EB-5 immigration attorney for case-specific guidance and competent preparation of your I-526 petition.

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    Vaughan de Kirby

    Immigration Attorney
    Answered on

    You can certainly partner with your U.S. citizen friend. This can complex, but it can be done. Consult with an investment immigration attorney and an experienced consultant in drafting your USCIS-compliant business plan.

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    Charles Foster

    Immigration Attorney
    Answered on

    You have the absolute right to partner with a U.S. citizen to make an EB-5 direct investment, provided that you make the minimum investment of $500,000.00 into the project, assuming that it is located in a targeted employment area, and that the project itself will create 10 jobs for U.S. workers.

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    Bernard P Wolfsdorf

    Immigration Attorney
    Answered on

    There is no requirement that you have control. The key is that you invest your own funds and that your investment creates 10 new jobs, directly, or if you use a regional center, indirectly.

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    Robin J Gray

    Immigration Attorney
    Answered on

    Even though you are partnering with a U.S. citizen, you still have to meet all of the criteria required to qualify for an EB-5. The answer to your question would be specific to the type of business you wish to start, your source of funds and type of funding, etc. It would be best to personally consult with an attorney who specializes in EB-5 to answer your questions and to assist you with obtaining your green card through an EB-5.

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    Marko Issever

    EB-5 Broker Dealer
    Answered on

    In EB-5, there is no minimum ownership requirement of the company. As long as your contribution to the business is in the form of equity, preferred shares and the like, there are no issues. Make sure that you are not lending to the newly created company (NCE) that you will be forming for the purposes of EB-5. As long as your stake is equity-like, you should be fine. Of course, you need to make sure that you meet all the requirements of a direct EB-5 project. Direct EB-5 projects have more difficult time qualifying as TEAs, but there is no reason that you should not be able to qualify as long as you demonstrate that where your project will take place is in fact a rural area or high unemployment area define by the statute. Since your partner is already a U.S. citizen, all the jobs that will be created by the job-creating entity, or JCE, that use the funds raised by the NCE will accrue to you.

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    A Olusanjo Omoniyi

    Immigration Attorney
    Answered on

    You should consider three issues in organizing the business so as to be EB-5-compliant. First, put together a Matter of Ho-compliant business plan detailing necessary information about the business. Secondly, in the plan show that the emerging business will create a minimum of 10 jobs within two years. Last but not the least, you must show that your investment fund is from legal source(s). As a matter of fact, you should document all the source(s) of your fund. Advisably, before you proceed, both of you should consult an EB-5 attorney for further guidance on how to ensure proper planning and execution of your plan.

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    Salvatore Picataggio

    Immigration Attorney
    Answered on

    This is possible, but as you already seem to recognize, it does require the right setup and the right team of professionals to get it done properly. Consult with an immigration attorney to get started!

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