How should a U.S. citizen structure a partnership for EB-5 direct investment?

An LLC is a flexible corporate structure that allows for one of the partners to be a foreign national. Your business must otherwise qualify for EB-5 to allow your foreign partner to obtain a green card, including the minimum of 10 full-time (at least 35 hours a week) qualifying employees to be allocated to EB-5 investors. A foreign partner&#39s I-526 petition must be accompanied by a five-year comprehensive business plan for the entity. You should hire an experienced EB-5 immigration attorney who will guide you through the process. A U.S. tax counsel and an EB-5 business plan writer will also be required.

For this type of investment, a U.S. LLC could be used. Normally, to make things more efficient, the foreign investors would set up a "blocking" U.S. C corporation for their participation in the LLC. Nevertheless, a U.S. LLC does allows for two partners, where one is a foreign national. Please note that this reply does not constitute legal advice, and you would need to hire an immigration attorney to assist with the EB-5 visa application.

Generally, entering into partnership with a foreign investor is governed by a maze of rules. The choice of company structure for foreign partners is rather limited by laws. For example, foreign nationals are not permitted to form or be a partner in an S corp. Also, although the formation of an LLC is allowed, the parties must: obtain a U.S. individual taxpayer identification number (ITIN) from the IRS if the foreign investor does not have a U.S. social security number; pay taxes on any earnings made in the U.S.; ensure the LLC that is formed with foreign partners must hold 35 percent of its profits for taxes and make sure it is paid and filed on a quarterly basis to the IRS; and file Form 1065 with the IRS to report the income, gains, losses, deductions, credits, etc., from the operation of a partnership for eventual individual taxation. Thus, consider a host of factors such as taxation, assumption of risk and the nature of industry, just to name a few. The formation of an LLC with foreign investors are common, but consult an attorney and tax experts before you proceed.

An LLC can have two partners where one partner is a foreign national.

As a U.S. citizen with a 50/50 partnership, you should choose a legal entity that is most advisable for your business. Yes, you can use an LLC even if your partner does for the immediate future have a social security number. He can obtain a taxpayer ID number (TIN) if required.

EB-5 allows for all forms of legal entities. Your ideal structure depends on your business and priorities. Hire a business attorney who can advise properly.

Foreign nationals are permitted to form companies in the United States, including LLCs.

Yes, LLCs allow foreign investors to be a member.