When considering the EB-5 Immigrant Investor Program, one common question is about the ownership requirement in the business you invest in. Here’s a clear breakdown of what you need to know. The short answer is that there is no fixed ownership percentage. Even a small percentage (1% or less) can work.
Ownership Requirements for EB-5
No Specific Ownership Percentage
Unlike the E-2 visa, which requires you to own at least 50% of the business, the EB-5 program does not have a specific ownership percentage requirement. You do need to have some equity stake in the business, but this stake can be very small. Here are the key points:
- Equity Stake: You must have some form of equity in the business, which could be through a limited partnership, membership unit, or shares.
- Fractional Ownership: Your ownership can be as small as a fraction of a percent. There is no minimum ownership threshold you must meet.
- Investment Amount: The critical requirement is that you invest the requisite amount of capital, which is $800,000 for businesses in a Targeted Employment Area (TEA) or $1,050,000 elsewhere.
Key Requirements for EB-5
While the ownership stake is flexible, you must meet other essential requirements:
- Capital Investment: You need to invest $800,000 in a TEA or $1,050,000 outside of a TEA.
- Job Creation: Your investment must lead to the creation of at least ten full-time jobs for U.S. workers. This can be direct, indirect, or induced jobs, depending on whether you invest in a regional center or a new commercial enterprise.
Conclusion
The EB-5 Immigrant Investor Program provides flexibility in terms of ownership stake, allowing investors to hold as little equity as a fraction of a percent. The primary focus is on meeting the investment amount and job creation requirements. This flexibility can make the EB-5 program an attractive option for those seeking U.S. residency through investment.
For more detailed guidance on the EB-5 program and its requirements, explore our free resources and schedule a consultation with our expert immigration attorneys.
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