two or three executives.
An alternative is that the foreign parent company can
purchase the shares of an existing (more than one year) and
substantial (operating) U.S. business (the subsidiary). and financially viable according to the business plan and
employees have been hired, the visa renewal process is
straight forward i.e., need tax returns and additional details
about ongoing business operations.
COST COMPARISON OF STRATEGIES
AND PROCESSING TIMES EB-5 DIRECT INVESTMENT
L-1A (Temporary Visa): To Start US$ 150,000 L-1A U.S. Business: New Office – 12 months US$ 1,000,000 The EB-5 category allows a foreign national investor to
irrevocably commit their personal funds (e.g., US$ 900,000
if the business is located in a TEA (Target Employment
Area) or Rural Area, into a U.S. business that will employ 10
full time employees. The investor will have to commit their
funds initially and then file their EB-5 petition with USCIS to
obtain conditional permanent residency.
If the business is not located in a TEA or Rural Area, then
the investment is USD $1.8 million.
Professional Fees: In Total (Attorneys, CPAs) US$ 200,000 Investors, if they so choose, can first commit their personal
investment funds into an E-2 business, and then invest
more funds into the same business i.e., E-2 business to
EB-5 business for the U.S. permanent residency visa.
Additional Management Operating and Payroll
Costs (2 years) US $ 1,500,000 Total 24 Months US$ 2,850,000
L-1A TO EB-1C
EB1C (permanent Residency) 24 Months
E-2: TREATY INVESTOR NON-IMMIGRANT VISA
For the E-2, the foreign national has to be a citizen of a
country that has a treaty investor agreement with the U.S.
The initial investment might be a minimum USD $100,000
to USD $150,000, for example in an existing or franchised
business. The E-2 investor will have to not only spend
money on the purchase but continue to generate enough
revenue and invest in the U.S. business to cover overhead
and operating costs as well as payroll.
The E-2 only is a temporary visa for a fixed period, as an
example, four or five years, with multiple entries. The E-2
visa may be extended with approval from the U.S. consulate
or E-2 status extended with approval from the USCIS.
Choosing an E-2 Business, cost is a factor as these are
challenges with new and existing offices. The cost of
setting up an E-2 business in the first year is substantially
less expensive and costly than setting up a new business
under the L-1A category.
However, the E-2 investment must be substantial and
more than marginal so the executive can earn a financially
viable living. For example, if an existing business is for
sale at US$100,000, an investment of US$ 95,000 will be
considered to be a substantial investment.
For the E-2 renewal, so long as the business is operating
EB5 INVESTORS MAGAZINE
COST COMPARISON OF STRATEGIES
AND PROCESSING TIMES
E-2 TO EB-5 (DIRECT)
E-2: 4 Months Plus To Start Entry to the U.S.
E-2 – EB-5: (Direct) Entry to the U.S.
Application: 24 – 28 months
Professional Fees (Attorney, CPA, Business
Plan Writer) Average US$
Total 32 Months US$ 1,150,000
Additional Management: Payroll and
Operating Costs (5 Years) US $ 2,000,000
Total 60 Months US$ 3,150,000
SECOND CITIZENSHIP: TO BECOME AN
If the foreign national is not a citizen of a E-2 treaty country,
then they will have to buy citizenship in a treaty country,
usually for a minimum of USD $300,000. This of course will be
an additional cost in obtaining a temporary visa to enter the U.S.
and direct a U.S. business.