I own a veterinary clinic in San Diego. Recently I was approached by a potential EB-5 investor who would like to purchase this business to obtain his green card. Do I need to register this business to any authorities in order to take his investments? If his EB-5 case fails, will it impact me?
First, you need to retain an experienced EB-5 immigration attorney time advise you. The buyer should also retain the services of an experienced EB-5 immigration attorney and the team of professionals to advise on how the U.S. business can be the basis for an approvable EB-5 petition. The real responsibility falls on the buyer to file an approvable EB-5 petition.
No formal registration. His application with USCIS initiates the process, but an EB-5 attorney (like me!) would want to develop the documentation to show the project complies with the EB-5 rules and policies. If it fails, you've already sold the business.
Not sure how buying an existing business will work for EB-5 unless it is a troubled business that lost 20% of net income in last 12 or 24 months.
You can go ahead and sell your business to the potential EB-5 investor who would like to make a direct investment. Make sure not to make any immigration-related commitments or representations. As far as you are concerned, you would be selling an existing business to him. He and his immigration attorney, or business consultant need to worry about making your business EB-5 compliant in terms of new job creation, business plans, etc.
No, you don't need to register your business anywhere and no, if he fails to get his EB-5 it will not affect you negatively, unless you agree to have the sale conditional upon the buyer's EB-5 approval.
It is possible to sell a business to an EB-5 investor. If his EB-5 fails, your liability would be governed by something other than the immigration laws as a commercial matter. There are many rules governing the EB-5 investment that the prospective investor needs to meet. The important thing is that the investor obtain experienced counsel to structure the investment to qualify. The minimum investment amount will increase on Nov. 21, 2019, from $500,000 to $900,000 and, in many cases, to $1.8 million. Thus, the parties should act immediately if the investor wants to invest at the lower amount.
There are many restrictions on direct investment EB-5 when an existing business is involved. I recommend you and your potential buyer immediately meet with a qualified investment immigration attorney. Do note that if you are not in a TEA, the investment will become $1.8 million after Nov. 21.
It may be possible but I would need lots more information.
You do not need any special approval or registration, but the investor through his or her experienced immigration attorney must make sure the purchase can be structured to be EB-5-compliant.
It is a separate transaction. It should be the buyer's concern after you finalize the sale of the business. The success of the EB-5 application should not be connected to the sale of your business.
This type of transaction involves sale-purchase of a professional service or professional corporation. While it may not lend itself for easy definition within the realm of EB-5, in actuality it will fall within direct investment for the buyer. However, considering there are several contractual and professional regulations that both sides need to go through, the buyer of this type of professional service/corporation is the one who bears the burdens of fulfilling the bulk of regulatory requirements, even ensuring the transaction meets EB-5 requirements such as investing the right amount and creating at least 10 jobs. You donƅt need to register the business with any entity to sell your professional practice except your state department of professional regulatory agency, which either typically monitors or will be interested in the transfer of such professional corporation. Regarding the EB-5 phase of the purchase, it is highly advisable that both you the seller and the buyer consult your individual attorney. Typically the buyer should also consult an EB-5 attorney for guidance on direct investment on how to structure the purchase for eventual EB-5 petition processing.
EB-5 rules do not concern the seller. You will be bound by the terms of the deal you agree to.
