How can I use a gifted business to qualify for an EB-5 visa? - EB5Investors.com

How can I use a gifted business to qualify for an EB-5 visa?

My uncle wants to gift his business to me in the United States. He has filed taxes. Will his gifting of the business to me with full management rights make me eligible for U.S. immigration through the EB-5 visa program?

Answers

Salvatore Picataggio

Salvatore Picataggio

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This will not work. You need to make an investment of capital (money) into a U.S. business. Your uncle can make a gift of funds to you to be used to invest into the business.

BoBi Ahn

BoBi Ahn

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In order for you to qualify as an EB-5 investor, you need to show that you have invested the requisite capital (either $500K or $1million) in the qualifying business. This means a business that is given/gifted to you would not work as an EB-5 vehicle. What you may be able to do is sell that business and use the proceeds towards an EB-5 investment in a commercial enterprise that may generate the requisite employment, etc.

A Olusanjo Omoniyi

A Olusanjo Omoniyi

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Yes, it can meet the EB-5 requirement. Gifts are acceptable sources of funding for EB-5. However, the sources of the gift must be legal and well-documented. In this case, be prepared to provide information regarding how your uncle created this business, his sources of fund/capital and other additional information relating to this business. Advisably, consult an EB-5 attorney for proper planning.

Fredrick W Voigtmann

Fredrick W Voigtmann

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This might work only if you sold the business and invested the sale proceeds in a new commercial enterprise. Otherwise a gifted business is not likely to be considered your investment; there are significant evidentiary issues with this scenario. Also, the new commercial enterprise would have to create at least 10 full-time positions for qualifying U.S. workers.

Charles Foster

Charles Foster

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Having a business gifted to you count as a direct EB-5 investment can be difficult to impossible. While a gift from a relative such as an uncle is possible at this time, remembering that there may be significant statutory and regulatory changes in the near future, you still have the obligation of showing that based upon that gift, you have made an investment of at least $1 million unless the enterprise is located in a Targeted Economic Area (TEA) and then it would have to be $500,000. Again, those amounts could be increased at any time. You also have to show that as a result of such investment you have created 10 new jobs for U.S. workers. Given the fact that this is an existing business, you would have the additional burden of showing that as a result of the gift you have increased the number of employees or the capital by 140 percent if the business was organized before Nov. 29, 1990. This would be very difficult under the fact circumstances you have shared.

Julia Roussinova

Julia Roussinova

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It may be possible if you meet the job creation requirement and this business qualifies as a new commercial enterprise or is otherwise a troubled business. You should consult an experienced EB-5 immigration attorney to review your options.

Dale Schwartz

Dale Schwartz

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It can work. This assumes the business otherwise qualifies as a "new commercial enterprise." You may have to hire additional employees. Your uncle must be prepared to show how he earned the money for the business.

Irina A. Rostova

Irina A. Rostova

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Probably not, unless you create 10 new jobs in that business. You would need to show that you have used the business assets gifted to you to establish a new entity and that new entity created 10 new jobs. Otherwise you will not be able to meet either the investment requirement or the job creation requirement.

Bernard P Wolfsdorf

Bernard P Wolfsdorf

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It is very unlikely gifting a business will be a basis to get a green card. If you sell the business and make an investment with the proceeds, that would be a basis to apply for an immigration benefit. To qualify for an EB-5, you have to make a job creating investment.

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