How should a U.S. citizen structure a partnership for EB-5 direct investment? - EB5Investors.com

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

I am a U.S. citizen and want to set up a company for EB-5 direct investment with a foreign investor as a 50-50 partnership. What is the best company structure to set up with a foreign investor who does not have a social security number? Does an LLC allow for two partners, where one is a foreign national?

Answers

Julia Roussinova

Julia Roussinova

Immigration Attorneys
Answered on

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.

Agustin Ceballos

Agustin Ceballos

Tax Attorneys
Answered on

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.

A Olusanjo Omoniyi

A Olusanjo Omoniyi

Immigration Attorneys
Answered on

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.

Daniel A Zeft

Daniel A Zeft

Immigration Attorneys
Answered on

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

Charles Foster

Charles Foster

Immigration Attorneys
Answered on

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.

Belma Demirovic Chinchoy

Belma Demirovic Chinchoy

Immigration Attorneys
Answered on

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.

Blake Harrison

Blake Harrison

Immigration Attorneys
Answered on

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

Jinhee Wilde

Jinhee Wilde

Immigration Attorneys
Answered on

Yes, LLCs allow foreign investors to be a member.

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