International Student Entrepreneurship: Immigration …...International Student Entrepreneurship:...

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InternationalStudentEntrepreneurship:ImmigrationOptions

by: RyanLamb

International Student Entrepreneurship: Immigration OptionsFebruary27,2012

2011,FosterSwiftCollins&Smith,PC.

TheInternationalEntrepreneur’sDilemma

Themorecommonvisasareemployment‐based,andtypicallyrequireanestablishedemployertopetitionforavisaforitsinternationalemployee.

Start‐upbusinessesaresubjecttoadditionalscrutiny,andcanencounterdifficultiessatisfyingUSCIScriteria.



RecentDevelopments&SupportfortheInternationalEntrepreneur Michigan– theStateofMichigananditsUniversitiesareverysupportive

FederalGovernment Congress– recentlegislationandbipartisaneffortstoencourageforeigninvestmentandjobcreation

U.S.CitizenshipandImmigrationServices(USCIS)–recentpolicypronouncementssofteningpolicyandencouragingtheinvestmentandself‐employmentvisaoptions



TheEntrepreneurasInvestortheInvestmentVisas

EB‐5InvestorVisas

E‐2TreatyInvestorVisas



EB‐5InvestorVisa

TheEB‐5programwascreatedin1990toencouragecapitalinvestmentandcreatedomesticjobs.

Ithas3primaryrequirements:

Investmentmustcreateanewcommercialenterprise i.e.anewbusiness,orrestructuringorexpansionofexistingbusiness

Investmentofatleast$1M $500Kifinvestingina“targetedemploymentarea”

Enterprisemustcreateatlease10full‐timeU.S.jobswithin2years. Indirect(tangentialordownstream)jobcreationmaybecounted, if

theinvestmentisprocessedthrougha“RegionalCenter”



EB‐5VisaBenefits

ThegreatbenefitoftheEB‐5Visaisthatitisapermanentvisa,whichresultsin“LegalPermanentResidence” akaa“GreenCard”! Mostemploymentvisacategoriesaretemporary,resultinginvisasoflimitedduration.



EB‐5Visas– RegionalCenters

RegionalCenter:

AnentityoragencypreauthorizedanddesignatedbyUSCISaseligibletoreceiveEB‐5investmentsinanewcommercialenterprise.



EB‐5– RegionalCenter(cont.)

TheRegionalCenter(RC)cangreatlybenefitpotentialapplicants: RCfindsaviableprojectinaTargetedEmploymentArea.

RCobtainsexpertopinionsupportingdirectandindirectcreationofatleast10jobs.

RChaspre‐establishedfinancingarrangementsandinvestmentcontracts.

RCconfirmsacceptableandverifiablesourcesofinvestmentfunds.

RChelpssupportinternationalapplicantandherimmigrationcounselwithhervisaapplications.



EB‐5– InternationalMichiganInvestmentsRegionalCenterTheInternationalMichiganInvestmentsRegionalCenter:

Michigan’sfirstRegionalCenter RecentlygrantedtheentireStateofMichiganasits

geographicscope– cannowplaceinvestmentsthroughouttheentireState.

FosterSwiftShareholderGaryMcRayisaco‐founderandcontinuingpartnerintheRegionalCenter.

SeeBrochuresbeingdistributed,andvisit www.invest2usa.com



Yes,butIdon’thave$500K...

Iwanttostartmyownbusiness,butI’monabudget– arethereotheroptions?



E‐2TreatyInvestorVisa

E‐2isaNonimmigrant(Temporary)Visa. TheE‐2applicantseekstoentertheU.S.:

Solelytodevelopanddirect theoperationsofanenterpriseinwhichhehasinvested,orofanenterpriseinwhichheisactivelyintheprocessofinvesting,asubstantialamount ofcapital.



E‐2– BasicRequirements

Nationality– mustbefromalistedTreatyCountry. Investmentmustbeatrisk &irrevocablycommitted. Substantiality

Theinvestmentmustbe“substantial” – asubjectivelegaltermofart,whichvariesbaseduponbusiness.• Nosetminimumandvariesbyconsulate• Typicalruleofthumbforinvestmentfloorbetween~$65K–100K

Marginality Investmentmaynotbe“marginal” (anotherlegaltermofart)

– musthavecapacitytogeneratepositivesignificanteconomicimpact

Jobcreationnotspecificallyrequired,butveryhelpfulinestablishingnon‐marginality

AbilitytoDevelopandDirect thebusiness Typicallyshowatleast50%ownership



E‐2‐ Benefits

DurationofVisa– initially2– 5years,butnosetlimitonextensions,canessentiallybeaperpetualvisa,solongasbusinessremainsviable.

QuickProcessing(dependingonConsulate) Asfastas~3– 5weeksatsomeConsulates

Self‐Employment LimitedDualIntentfeatures(permittingpursuitofconversiontopermanentvisa)

Relaxedtemporaryintentrequirement



E‐2– DrawbacksandLimitations

Non‐TreatyCountryNationalsarenoteligible. TemporaryVisa– doesnotresultinaGreenCard,subjecttorenewalsandriskofasubsequentdenialinthefuture.

Subjectiveadjudication– E‐2’sappearparticularlysusceptibletoinconsistentadjudications.

At‐Risknatureofinvestment– theinvestmentmustbecommittedandat‐risk;itcannotbedependentuponobtainingvisa.



RelatedStart‐uporInvestmentServices

TheEntrepreneurorInvestoroftenencountersanumberofrelatedlegalissuesandneedforservices,including: Businessorganizationsandcontracts Internationaltradeandcontracts Securitiesandinvestments Financingandloandocuments Estateplanning



OtherSelf‐EmploymentOptions?

OPT EB‐2– AdvancedDegreeorExceptionalAbility+NationalInterestWaiver

H‐1B– SpecialtyOccupation L‐1‐ IntracompanyTransferees



OptionalPracticalTraining(OPT)

12months– foreachhigherlevelofeducation

NoJobOfferrequired

Start‐upactivitypriortoOPT?



EB‐2Visa– AdvancedDegree/ExceptionalAbility

PermanentVisa/GreenCard ProfessionalwithAdvancedDegree;or

U.S.Master’s,orequivalent,or U.S.Bachelor’s,orequivalent,+5yearsprogressiveworkexperience

ExceptionalAbility Possiblyevidencedbyacclaim,workhistory,prizesorawards,peerrecognition,publications,etc.



EB‐2– NationalInterestWaiver(NIW) TheEB‐2NIWpermitsexemptionfromtypicalrequirementsoflaborcertificationandjoboffer. Therefore,permitsself‐petitioningandself‐employment.

MustestablishthathisU.S.employmentwillbeinthe“nationalinterest.”

RecentUSCISpronouncementsareencouraging,andsuggestadditionalsupportforgrantingNIWwhere: EntrepreneurwillcreatejobsforU.S.workers,or OtherwiseenhancethewelfareoftheU.S.



H‐1B– EmploymentinaSpecialtyOccupation

A“SpecialtyOccupation” isonethatrequiresthetheoreticalandpracticalapplication ofabodyofhighlyspecializedknowledge tofullyperformtheoccupationandrequirestheattainmentofabachelor’sorhigherdegreeinaspecificspecialty,oritsequivalent.

Licensure Ifrequiredbystatetopractice,thebeneficiarymustpossesstherequisitelicense,oraninterimpermit,ifavailable.



H‐1B– Self‐Employment?

Entrepreneurwouldliketostartabusiness,andthenpetitionforavisaforherselfasanH‐1Bemployeeofthebusiness.

Previouslypermitted,however,recentNeufeldMemorequired: Separationbetweenownerandemployee,and Independentrightofcontroloveremployee



H‐1B– Self‐Employment

RecentadditionalpolicypronouncementsfromUSCISappeartomitigateNeufeldMemoimplicationsandencourageviabilityofH‐1Bself‐employmentoption.However: Additionalshowingofbonafideemployer‐employeerelationshipstillrequired

Righttocontrolemployeeremainsanissue– separateBoardofDirectors

Actualimplementationremainstobeseen



H‐1B– FilingRequirementsandSelf‐Employment

EmployermustobtainaPrevailingWageDetermination(PWD)(i.e. government’sopinionofafairwage)forsimilaroccupations

Start‐upcompaniesmustshowcompany’sabilitytopaythePWD USCISisoftenskepticalforthisreason– ahurdlefortheself‐employedtoovercome



L‐1IntracompanyTransferees

AnentrepreneurorhisfamilymightownacompanyoutsideoftheU.S.,whichdesirestobecomemulti‐nationalbyestablishinganofficeintheU.S.andhiringtheentrepreneuronanL‐1visa.L‐1requires: Employedcontinuouslybythecompanyabroadforatleast1ofthepast3years.

EmploymentasaManager/Executiveorinapositionrequiring“specializedknowledge.”



Welcome!

WewishtowelcomeinternationalentrepreneurstoMichigan,

andEncourageyoutopursueyourdreamsand

startyourownbusiness&

ThankyouforyourInterest!

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