I am a U.S. contractor and am debating whether or not to do business with an EB-5 investor. What liabilities or unforeseeable responsibilities could I take on with this client?
You will need to retain an experienced EB-5 immigration attorney to advise you on the EB-5 project being immigration and SEC-compliant.
There will be similar liabilities as in any legitimate business operation. Business must be compliant with EB-5 laws and regulations, which are quite complex, in addition to business and securities laws and regulations. You should consult an experienced EB-5 immigration attorney who would be able to work with a team of other professionals to assist you.
"Unforeseeable liabilities" could exist in any business endeavor or relationship. If you choose to have EB-5 investors'' capital in your project, your liabilities would be determined by the contracts you sign with the investors. It is imperative that you retain legal counsel to advise you on the specific requirements of the EB-5 law and regulations, in addition to having a good business attorney.
The EB-5 investor will need to show they have invested the requisite amount of money in the project and will need the assurance that 10 jobs will be created within two to three years. In terms of liabilities to you, this all depends on the financial agreements you sign and the relationship you will have with the investor. The EB-5 program requires the investor to be involved in developing and directing the business, so get to know your business partner well before entering into such an arrangement.
The liability you use to retain the foreign investor''s funding will depend on the investor''s I-526 petition. If there is a denial, you may have to provide refunds.
This will in large part be determined by the type of project you propose. I would consult with a qualified EB-5 attorney once you determine the project.
This is a loaded question - the liabilities that you can be exposed to are those that you would be exposed to when entering into any partnership with any individual. As such, ensure that you conduct all due diligence thoroughly.
I am not aware of any particular liabilities in doing business with an EB-5 investor. Perhaps it depends on what kind of business you mean.
I am not sure what type of business you are doing with the EB-5 investor and what the relevance of his or her immigration status is to the business you are conducting. If the person is a U.S. permanent resident (regardless of whether residency was gained through the EB-5 investor category) you will need to be careful about delving into issues that may be perceived as discriminatory. Again more information is needed to properly respond to this question.
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