The two most popular immigration pathways for investors and entrepreneurs are the EB-5 visa and the L-1A visa. Some visas, such as the EB-2 National Interest Waiver (NIW), may also benefit entrepreneurs despite their apparent focus on “employees.” If you’re trying to establish a roadmap toward a new life in the United States, your first step should be to choose a visa that aligns with your unique attributes, financial status, and goals. An experienced immigration attorney in Dallas can guide you through this process from start to finish.
Why Are L-1A and EB-5 Visas so Popular Among Entrepreneurs and Investors?
The L-1A visa represents one of the largest immigration programs in the United States by volume. Each year, tens of thousands of entrepreneurs use this program to relocate to the country and continue their foreign business operations on American soil. Despite the fact that EB-5 visas are capped at 10,000 admissions per year, this still represents another exceedingly popular immigration pathway among entrepreneurs and investors. Why are these two options so popular?
While the L-1A program facilitates “intra-company transfers,” it also allows you to transfer yourself as a manager to the United States for the specific goal of setting up a new subsidiary, franchise, or satellite office. One might argue that this is tailor-made for entrepreneurs. On the other hand, the EB-5 visa is explicitly designed for investors, and its official name is the “immigrant investor program.”
Which Immigration Pathway Should I Choose as an Investor or Entrepreneur?
Most investors and entrepreneurs will need to choose between pursuing an L-1A visa or an EB-5 before they begin filling out forms or gathering investment funds. The first question you need to ask yourself is simple: “Do I have enough money for an EB-5 visa?” The EB-5 has a reputation for being America’s “golden visa” for a reason: You may need more than $1 million US dollars to qualify. Although certain discounts apply to those investing in targeted employment areas (TEAs), this threshold could still be extremely challenging for many entrepreneurs to overcome.
If you lack the funding to qualify for an EB-5 visa, the L-1A visa becomes a natural second choice. Unlike the EB-5 visa, this option does not require you to invest a certain amount of money. However, there are many other restrictions to consider, and many of the hurdles you’ll face require a secure financial footing.
Perhaps the most significant investment you’ll need to make when pursuing an L-1A visa is denominated not in currency, but in time. Immigration officials will only allow you to establish a new office in the United States if your foreign parent company is well-established. You cannot create a corporation in your home country one day and apply for an L-1A visa the next.
Instead, the parent company must be legitimate, successful, and capable of sustaining itself once it begins operations in the United States. In order to convince immigration officials, you’ll probably need to show a track record of business success over the previous few years.
While you won’t have to invest over $1 million for an L-1A visa, you still need to show that the company is capable of generating significant revenue. The USCIS does not specify an exact dollar amount, but your company should probably be earning over six figures annually. You may also need a reserve of liquid assets to fuel the establishment of your new branch once you arrive in the United States. Speak with your lawyer to learn more about the specific financial requirements for an L-1A visa.
If the L-1A visa offers a lower investment threshold, then why would anyone even consider the EB-5 visa? First, the EB-5 visa offers a more direct route toward permanent residence and eventual citizenship. Once you obtain your EB-5 visa, you should enjoy a relatively streamlined path toward a new, long-term existence in the United States.
In contrast, the L-1A visa expires within 12 months of your arrival in the United States. It is a temporary work visa, and you’ll need to successfully establish your business within that one-year timeframe if you want to remain in the country any longer. That said, you can technically stay in the country on a continuously extended L-1A visa for up to seven years.
Of course, you may not have to choose between these two options at all. Instead, you can pursue both immigration pathways simultaneously. A common strategy is to start with an L-1A visa and then transition to an EB-5 visa later when you want to pursue permanent residency. This gives you plenty of time to generate the minimum investment requirements while building your startup in the United States. The beauty of this pathway is the fact that you can select your L-1A branch/subsidiary as the recipient of your subsequent EB-5 investment.
What Does a Typical L-1A Immigration Roadmap Look Like?
The L-1A immigration roadmap begins with the establishment of a legitimate foreign corporation. After showing solid financial strength for two or three years, the applicant establishes a branch in the United States and transfers themselves as a manager to oversee the new operation on American soil.
One year later, the company will have successfully established itself in the United States and hired various staff members. With continuous extensions, the applicant has six more years to successfully transition to an EB-5 or EB-1C visa.
What Does a Typical EB-5 Immigration Roadmap Look Like?
The EB-5 immigration roadmap is theoretically simpler because it immediately leads to permanent residence. However, the planning stage is still considerable, as you will need to choose between regional centers, direct investments that create jobs, targeted employment areas, and many other options.
Another important planning step is to prove and document the source of funds (SOF), as immigration officials are very wary about allowing any investments with proceeds of illegal activities. If all goes well, you can remove the conditions associated with your visa and achieve full permanent residency within four years. By year five, you can apply for full citizenship.
Contact Presti Law Firm, PLLC to Plan Your Immigration Roadmap
If you’re serious about bringing your entrepreneurial talents or investment knowledge to the United States, now is the time to act. Although online research can help you understand your options and the next potential steps, the real progress begins when you schedule a consultation with a Dallas immigration lawyer. These legal professionals can analyze your unique situation and create a targeted action plan that matches your goals. Expand on this conversation by contacting us at (214) 831-8078. You can also visit us online.