EB5 Investors Magazine "Top 25 Awards Edition" Volume 8 Issue 1 - Page 23

COST COMPARISON OF STRATEGIES AND PROCESSING TIMES NEW E-2 (NEW CITIZENSHIP) TO EB-5 (DIRECT: OWN BUSINESS) New E-2 Citizenship of E-2 Country: 5 Months US$ 300,000 E-2: 4 Months To Start US$ 150,000 E-2 to EB-5: Direct US$ 900,000 Application for CPR: 28 Months after filing EB-5 I-526 Petition Professional Fees (Attorney, CPA, Business Plan Writer) US$ 150,000 Additional Management Operating and Payroll Costs (5 Years) US $ 2,000,000 CHOOSING E-2 OR L-1A: BUSINESS COST: A FACTOR: FIRST YEAR Total 60 Months US$ 3,500,000 It may be less costly and inexpensive to obtain a citizenship in a treaty country and obtain an E-2 visa other than to spend the capital needed for the setting up of a new L-1A office over the first operational year. Of course, the foreign nationals’ investors goals will determine whether the E-2 or L-1A is the better approach. L-1 VISA E-2 VISA U.S. Corporation Foreign Corporation Initial Investments $100,000 U.S. Corporation 1. Initial Investments 2. Organizational Hierarchy Required: Active VP VP M M Executive Manager Specialized Knowledge Payroll $700,000 per annum to $1,000,000 per annum. Overhead costs $700,000. First year: Estimate $1.7 million costs. First year Revenue, greater than $1.7 million C.F. Organizational Hierarchy: Passive Executive, Supervisor, Essential Employee E-2 Investor - Salary Payroll Other Employees: F.T., P.T. I.C $250,000 per annum Overhead costs $150,000 per annum First year: Estimated $400,000 costs. First year Revenue, greater than $400,000 EB5INVESTORS.COM 23