This document summarizes various visa options for foreign investors looking to do business in the United States, including non-immigrant and immigrant visas. It outlines the Treaty Investor (E-2) visa, which requires a substantial investment in and controlling stake of a real operating business. It also describes the L-1 visa for intracompany transfers, and EB-5 immigrant investor visa requiring a $1 million investment and job creation. Key eligibility requirements and investment levels are provided for each visa category. The document stresses consulting immigration attorneys to determine the best visa pathway based on an individual investor's situation.

1. SELLING TO FOREIGN INVESTORS:
Immigration Rules Every Business Broker Needs to Know
Ann Massey Badmus
Cowles& Thompson, PC

2. IMMIGRANT ENTREPRENEURSHIP

3. Government Outreach to Entrepreneurs?
http://www.uscis.gov/portal/site/uscis/eir

5. BASIC IMMIGRATION FACTS TO KNOW
• Visa (legal) status is not required to be a
passive owner, as in buying stock, owning real
estate, absentee ownership, or borrowing
money.
• Need legal status to remain in the US.
• Self-employment requires work authorization
from the U.S. Citizenship & Immigration Service
(USCIS)

6. OPTIONS FOR LEGAL STATUS IN US
Nonimmigrant Temporary
Visas
Immigrant Visa
(Green Card)

7. E-2 L-1 O-1 H-1B
•Treaty country
nationals (TN) only
•Investors and
essential skills
employees
•TN must own 50% of
business and
•Indefinite duration
•Spouse can work
•No visa quota
•Existing foreign
business and
“affiliated” US
business
•Managers(L-1A) &
Specialized
Knowledge workers
(L-1B)
•Five (L-1B) to 7 (L-1A)
duration
•Spouse can work
•No visa quota
•People in the arts,
sciences or business
who are at the “top of
their fields”
•Indefinite duration
•Spouse cannot work
•No visa quota
•Professional Workers
in “Specialized
Occupation”
•Foreign National
must have a
Bachelor’s Degree in
the occupational field
•Six year duration
•Spouse cannot work
•Annual quota of
65,000 with 20,000
master degree
exemptions
Non-immigrant Visas

8. Treaty Investor (E-2) Visa Program
• Nationality – must be citizen of treaty country
• Investment must be substantial in a real, operating
enterprise
• Investor must have control of the funds, and
investment must be “at-risk”
• Investor must have controlling interest (50% or more),
and intend to develop and direct the enterprise
• Enterprise must be more than marginal

9. Treaty Investor (E-2) Visa - Ownership
Ownership may be as:
•an individual proprietor,
•majority partner, or
•majority corporate shareholder.
Investor must possess the nationality of the treaty
country (list of countries found at www.travel.state.gov)

10. Treaty Investor (E-2) Visa - Investment
Substantial investment - sufficient funds to ensure a financial
commitment to the successful operation.
No minimum dollar amount to qualify
Proportionality test - compares the total amount
invested in the enterprise with the cost of establishing or
buying a business
• Smaller business = higher % of investment
• Large business = lower % of qualifying investment.

11. Treaty Investor (E-2) Visa - Investment
In general, a buyer will have a
substantial investment if:
• Cost = $100K - $500K and
investment is at least 75%
• Cost = $500K - $1M and
investment is at least 60%
• Cost = $1M - $3M and
investment is at least 50%

12. L-1 Transferee Visa Program
• Temporary transfer of business owner to the US to continue
employment with parent, branch, or subsidiary of foreign
business.
• Must be qualifying relationship (control/ownership)
between the Foreign Co & US Co.
• Investor must have been employed with foreign business
for continuous period of at least 1yr within the last 3yrs.
• Must operate both U.S. and foreign business for entire term
of L-1 visa.

13. L-1 Transferee Visa Program
• No minimum investment requirement but show sufficient
funds to operate business
• Need to have employees or expectation of employees
within one year
• Must show sufficient staff in foreign country to run
operations while investor is in U.S.
• U.S. business can be in different industry than foreign
business

14. EB-5 Immigrant Investor Program
• Can invest in an existing business
or a new business.
• Minimum investment $1,000,000
($500,000 in certain targeted
areas).
• Must create at least 10 full-time
jobs for U.S. workers.

15. EB-5 Immigrant Investor Program
Investor must establish a new
commercial enterprise by:
• Creating an original business;
• Restructure or reorganize an existing
business;
• Expanding an existing business by
140%; or
• Reviving a “troubled business” that has
lost 20% of its net worth

16. EB-5 Immigrant Investor Program -Investment
Investment by EB-5 application must be:
• At risk in the commercial enterprise,
• Fully committed, and
• Immediately available.
Investment defined as “capital”: cash
and cash equivalents, loans,
equipment, inventory, and other
tangible property.
NO GUARANTEES!

17. • Facts of each case are different.
• Other options may be available depending
upon the investors circumstances.
• The information provided here is general in
nature and should not be relied upon for
specific situations and is not legal advice.
• Consult with an experienced immigration
attorney to get the right advice and
direction for your investor.

18. FOREIGN INVESTOR TEAM
 Immigration Attorney
 Business Attorney
 Tax Attorney
 Estate Planning Attorney
 Real Estate Agents
 Accountants
 Bankers
 Payroll Specialist
 Insurance Agents

19. QUESTIONS?

20. FOR FURTHER INFORMATION
Ann Massey Badmus
901 Main Street
Suite 3900
Dallas, Texas 75202
214-672-2161
abadmus@cowlesthompson.com
www.badmuslaw.com