We have a project that is accepting an investment from a foreign investor who is applying for an EB-5 visa. We will be creating 10 new jobs, but they are split between locations in two states. We would like to create a sub-entity to manage one set of employees in one state and have the parent company manage the other set. Is it a problem to show proof of employment from two different EINs if we can show that the sub-entity is wholly owned by the parent company? Does this company structure/info have to be in the business plan?
Answers
Xiaosheng Huang
Immigration AttorneysIt should be OK. You need to describe the structure in the business plan.
Salvatore Picataggio
Immigration AttorneysUSCIS has considered portfolio concepts, but approval of such concepts would require both companies in that portfolio to be fully formed actual projects.
James Yang
Immigration AttorneysThe structure should have the parent owning 100 percent of the subsidiary. That way, jobs created from both EINs may be credited to the EB-5 investor who has invested into the parent.
Barbara Suri
Immigration AttorneysThe company structure MUST absolutely be in the business plan. In this way, USCIS may evaluate whether or not this split structure complies with their understanding of the EB-5 requirements.
John J Downey
Immigration AttorneysYes, you need it in the business plan to make sure USCIS will accept it. It looks problematic if there is a regional center involvement, as it is in two different areas.
Charles Foster
Immigration AttorneysYour question raises a number of complexities, but basically this will be difficult to do. First of all, if you are using a regional center, the regional center would have to have jurisdiction over the project location. Secondly, if it is at the $500,000 level, the jobs must all be within a TEA. Finally, the investment must be made in the same entity rather than two separate entities. You need to consult with immigration counsel that has significant experience in setting up EB-5 regional centers/projects.
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