How is the corporate structure defined in the direct EB-5?

The EB-5 program is a pathway that allows foreign investors, through a significant capital contribution, to obtain permanent residence in the United States. In the direct EB-5 route, investors apply their resources directly into a commercial enterprise, which requires the corporate structure to be formulated in a way that meets both investment requirements and job creation demands.

In practice, the corporate structure of a direct EB-5 business must be organized to demonstrate that the invested capital will be used for the expansion or creation of a new enterprise, aimed at generating the jobs required by the program. Generally, this involves the establishment of a business entity-often a limited liability company (LLC) or a corporation-that can be formed specifically for the EB-5 project.

In many cases, the choice also falls on partnership structures, such as limited partnerships, where the investor acts as a limited partner and active management is conducted by a managing partner. This division can facilitate meeting the requirement of ‘active involvement’ in business administration or operations, an important program prerequisite.

It is worth noting that the corporate structure design must allow for clear accounting of investments and proof that the funds were applied toward the business, resulting in the creation of at least 10 direct or indirect jobs for U.S. workers. Therefore, it is essential that such arrangements be thoroughly documented, demonstrating the proper use of capital and complying with the rules and regulations established by the United States Citizenship and Immigration Services (USCIS).

Finally, it is crucial to underscore the importance of strictly following U.S. immigration laws at every stage of the process, as well as seeking guidance from specialists in the field to avoid pitfalls, scams, or unfounded promises advertised in marketing campaigns. The appropriate corporate structure, combined with a solid project and legal compliance, is the foundation for a successful direct EB-5 process.

Victoria Harper

Editor-in-Chief

Meet the author

Leading journalism and editorial content at Visto n’ Visa, Victoria helps make immigration topics clear, trustworthy, and easy to understand. Her focus is on delivering useful, human, and relevant content for people exploring new paths abroad.