What taxes does an EB-5 company have to pay?

A company linked to an EB-5 project has no special tax regime: it pays the same taxes as any equivalent business in the United States. What changes the equation is mainly the legal structure chosen.

If the venture is a corporation (C-Corporation), it tends to pay corporate income tax at the federal level and, depending on the state and municipality where it operates, state and local taxes as well. Structures such as the LLC (Limited Liability Company) or partnerships, on the other hand, typically operate as pass-through entities: the income is transferred to the members or partners, who report their share on their personal income tax returns.

When there are employees, payroll taxes also come into play, such as Social Security and Medicare contributions and other employment obligations. The form of taxation directly affects the project’s cash flow and bottom line, so it deserves attention from the very design of the operation.

• The tax burden follows the chosen legal structure.
• Corporations and pass-through regimes create very different obligations.
• Companies with employees take on payroll obligations.

Because tax and immigration rules overlap and each situation has its own specifics, it is worth confirming current obligations with an accountant and an immigration attorney, and reviewing official USCIS guidance on the program.

About the author

Victoria Harper

Editor-in-Chief

Meet the author

As a journalist and lead editor at Visto n’ Visa, Victoria helps ensure that immigration topics are covered in a clear, trustworthy, and easy-to-understand way. Her focus is on delivering useful, human, and relevant content for people exploring new paths abroad.