THE BASICS OF EB-5
"...whether you go
with the direct or
regional center EB-5
model, it is critical to
hire an experienced
EB-5 team...."
should be aware that although their family members
can work for the direct EB-5 project, they do not count
towards the required creation of a minimum of 10 full-
time jobs. It’s easy to overlook or underestimate how
much minimum wage for 10 full-time jobs is. Depending
on your location and business, it can very well be
$200,000 to $300,000 per year.
Record Keeping and Proving Job Creation
In addition to the difficulty of opening a business in a
foreign country in compliance with local business and
labor laws, EB-5 job creation requirements are more
strenuous.
Let’s consider you’re an aspiring Korean BBQ restaurant
franchisee. There are numerous threats to the viability
of your business. In addition to stemming the initial
challenges of getting your restaurant into the black and
keeping a steady stream of customers, you now have
to be responsible for documenting and maintaining
copious amounts of paperwork to prove job creation.
About two years later, you will have to begin organizing
paperwork to prove job creation for your Form I-829
petition. If you’re a direct EB-5 project, you begin to
wade through a maze of foreign terms that appear
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EB5 INVESTORS M AGAZINE
vaguely English: I-9 paperwork, E-Verify, W-2 forms
and so forth. On the flipside, if you are using a regional
center, proving job creation can be as simple as
providing evidence to verify the line items you’re using
for job creation. Often times, that will be construction
expenditures and operational revenues.
This greatly simplifies the document keeping process
and minimizes your exposure as a business owner
because you won’t be responsible for other people’s
immigration violations.
THE ROLE OF A
PROFESSIONAL EB-5 TEAM
Moreover, whether you go with the direct or regional
center EB-5 model, it is critical to hire an experienced
EB-5 team. In addition to an experienced EB-5 counsel,
your business plan writer, economist and securities/
transactional/corporate counsel will be critical to the
success and safety of your EB-5 project as well.
Business Plan and Economic Analysis
While you may know your busine