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Flores Law Firm
7272 Wurzbach Rd
- Suite 901
San Antonio, TX 78240
(210) 340-3800
Fax: (210) 340-5200
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THE FLORES LAW FIRM
Business & Tax Attorneys
Immigration opportunities for Foreign Investors and Entrepreneurs in U.S.A.
Dear Clients and Friends,
Generally, for foreign investors and business persons, the Immigration Laws of the United States provides opportunities to obtain investor or business visas, here we will discuss the following:”
- Permanent Residents
- Business Visa L1
- Investors Visa E1/E2
For permanent residence, a foreign person must establish his/her intention not to return to the country of origin and the desire to reside permanently in the United States. To a resident alien, a card known as a “Green Card” will be issued and the holder will become a regular taxpayer. A regular taxpayer must inform and is taxed on his/her global income and estate.
For a business or investor visa, the foreign person must have the intention to return to his/her country of origin after a certain period of time. A business or investor visa limits the type of activities that could be engaged in the United States, as well as the allowable time to be present in the United States. The person is not necessarily treated as a resident for tax and legal purposes. The majority of investors and business persons prefer a non-immigrant visa (L-1, E-1, or E-2), which allows them to live and work in the United States without necessary becoming a normal contributor for tax purposes.
The definition of a resident for tax purposes is found in the “Treaty to Avoid the Double Taxation” Article 4, that explains the determining test of Center of Vital Interests. Also, if the person is in U.S.A. for less than 183 days he/she will not classified as a regular taxpayer and will only pay the income coming from an American sources.
Business Visa: L-1
The business visa (L-1), allows a Foreign company to establish a representative company and to transfer an executive, to such subsidiary or branch in the United States. The executive must have been employed at least a year in the foreign company and have managerial experience or specialized knowledge of the foreign company. The executive is limited to work only in the company that sponsors the visa and this is authorized for up to three years for existing companies; one year for new companies. The executive is allowed to bring his/her spouse minor children under 21 years. Only the spouse is allowed to request a permit to work in U.S.A. while the children can only be students.
Entrepreneurs Visa: E-1
The visa for entrepreneurs (E-1) allows companies with substantial activities in the United States, to send its executives or managers to supervise or to control its business operations in the United States. In order to qualify for an E-1 visa, the foreign company or its affiliates must establish that: (1) more than 50% of the business or commerce is between the United States and the foreign country; and (2) the executive, manager and shareholders of the foreign company must be resident of a country that has an agreement or treaty of commerce with the United States.
Investors Visa: E-2
The foreign investor who makes a substantial investment in a business in the United States could obtain a visa for their executives, managers or him/herself. The visa allows the executive to enter or to leave the United States without limitation, or to remain continuously in the country. The visa is commonly approved up to a maximum of five years and extensions can be obtained.
An E-2 Visa is limited to persons who are citizens of countries who have a commercial treaty with the United States. The executive is limited to work solely for the petitioning employer. The executive is allowed to bring his family, however, they are not allowed to work for a U.S. employer . However the wife can request a work permit, it is the same as with the L-1 .
Conclusion
Immigration Laws of the United States facilitates investments, business and commerce between the United States and certain foreign countries. Nevertheless, it is important to carefully analyze the best alternative for each case before starting the process. The visa petition process is extremely important and complicated. Either of the two kinds (L or E) of visas requires the following:
1. Investment of substantial capital.
2. An American company.
3. A business plan and financial projections of 5 years.
4. The hiring of employees in the U.S.A.
5. A high ranking experienced executive or manager.
6. An executive or manager responsible for supervising and administering the operations and employees of the U.S. company.
7. The preparation of the visa request and supporting documents.
8. Submitting a full petition to Immigration.
This information is a general summary of the regulations and should not be used in place of individualized legal, tax or investment advise for any investment or transaction. We strongly recommend you consult your attorney or tax and investment adviser regarding your particular case. Should you need additional information it will be our pleasure to assist you.
As requirement of the United States Treasury Regulations, you should be conscious of the fact that this notice has not been written to be used and it should not be used by the recipient to prevent penalties that could be imposed by U.S. Federal Law.
For more information contact us at:
Ruben Flores, CPA, JD
The Flores Law Firm
7272 Wurzbach Rd. Suite 901
San Antonio, TX 78240
Tel. (210)340-3800
Fax (210)340-5200
e-mail: rflores@taxadvisors.com
www.floresattorneys.com
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