In 2021, the US welcomed over 10,000 EB-5 investor visas. This programme offers a path for foreigners to obtain an investor green card by investing in the US. In this guide, you’ll learn how to set up a US business to immigrate through investment and meet EB-5 requirements.
Getting an EB-5 visa combines the drive for business success to live in the US. We will cover the key steps and considerations when starting a US business, ensuring your investment helps secure the investor green card, and potentially paving the way for future ventures in other regions, such as companies in Italy.
Key Takeaways
- The EB-5 investor visa requires a significant investment and job creation in the US.
- Choosing the right business structure is crucial for your application’s success.
- Understanding the industry and location for your business is key to its viability.
- Meeting legal and regulatory compliance ensures a smoother EB-5 process.
- Professional guidance from immigration attorneys and consultants can greatly enhance your chances of success.
Understanding the EB-5 Visa Programme
The EB-5 Visa Programme enables investors to live permanently in the United States, boosting the US economy while granting investors a valuable immigration benefit. Many entrepreneurs globally choose this programme, especially those looking to start your business in one of the world’s largest economies.
What is the EB-5 Visa?
The EB-5 visa allows foreign investors and their families to become permanent US residents by investing in a qualifying US business.
Benefits of the EB-5 Visa
- Live, work, and study anywhere in the US.
- Begin the journey toward US citizenship.
- Secure permanent residency for family members.
- Pair investment goals with relocation plans, such as a move to America strategy.
Choosing the Right Business Structure
- Sole Proprietorship – Simple and fully controlled, but with full personal liability.
- Partnerships – Shared ownership and resources, but also shared risks.
- Limited Liability Company (LLC) – Combines flexibility with liability protection, popular among EB-5 investors.
- Corporation – Strongest liability shield, easier to raise capital, but more regulations.
Industry Selection for Your EB-5 Business
Choose sectors with proven job creation potential, such as real estate, hospitality, or healthcare. These industries align well with EB-5 requirements and can complement long-term international expansion, from launching companies in Italy to opening branches in other competitive global markets.
Steps to Start a Company in the US for EB-5
Initial Steps and Documentation
- Select and register a unique business name.
- Obtain an EIN from the IRS.
- Secure all necessary licenses and permits.
- Ensure compliance with federal, state, and local regulations.
Setting Up a Business Plan
Your EB-5 business plan should detail financial projections, operational strategy, and job creation timelines, demonstrating your ability to meet the 10 full-time job requirement.
Investment Requirements for EB-5 Visa
- Minimum Investment Amount – $1 million, or $800,000 in a Targeted Employment Area (TEA).
- Types of Investments – Direct job creation through your business, or indirect job creation via a Regional Centre.
- Evidence of Funds – Document the legal source of your funds through tax returns, bank statements, and business records.
Choosing a Business Location
Strategically selecting your business location can reduce your investment threshold (if in a TEA) and increase your chance of long-term success. Consider market demand, accessibility, and community support.
Legal and Regulatory Compliance
- Obtain all required business licences.
- Meet federal and state tax obligations.
- Comply with US labour laws regarding wages, hours, and workplace standards.
Preparing and Filing Your EB-5 Petition
Gather all essential documents, including proof of investment, a comprehensive business plan, and job creation evidence. File USCIS Form I-526 accurately and completely to avoid delays.
Navigating the EB-5 Interview
Be prepared to explain your investment details, source of funds, and day-to-day business involvement. Practice responses, review your business plan thoroughly, and arrive at the interview well-prepared.
Working with Immigration Attorneys and Consultants
Engaging skilled legal experts can help you navigate EB-5 complexities and improve your approval chances.
Case Scenarios: Successful EB-5 Ventures
From luxury hotels in Florida to tech start-ups in Silicon Valley, EB-5 investors have succeeded in diverse sectors. Their common traits? Careful industry selection, strong planning, and compliance with EB-5 rules.
Challenges and Risks
- Failing to create enough jobs.
- Mismanaging finances.
- Non-compliance with legal requirements.
Risk can be reduced with detailed planning, regular legal consultations, and transparent communication.
Maintaining Your EB-5 Status
To keep your EB-5 status, ensure ongoing job creation, maintain lawful operations, and spend enough time in the US to meet residency requirements.
