Can my brother, who is a U.S. citizen, gift me funds for my direct EB-5 visa and also be a partner in the business? - EB5Investors.com

Can my brother, who is a U.S. citizen, gift me funds for my direct EB-5 visa and also be a partner in the business?

My brother is a U.S. citizen and he is willing to gift me the minimum investment amount for an EB-5 visa. I have been looking at franchise opportunities and one said I would need a U.S. citizen on as a partner with 60% ownership in the business. My question is would USCIS agree to my brother being a 60% partner in the business and also be the one gifting me the funds?

Answers

Linda Liang

Linda Liang

Immigration Attorneys Directory
Answered on

Anyone can gift you but the gift must be from a legal source. As long as your brother is willing to provide proof of funds and your attorney is able to trace the fund to a legal source, yes, your brother can gift you even though he is a 60% partner.

Phuong Le

Phuong Le

Immigration Attorneys Directory
Answered on

It’s absolutely fine for your brother to be an owner/partner of the U.S. business (or the LP/LLC). For the gift, he’d have to prove that he earned it lawfully and it complied with tax laws, but that should be doable if structured correctly.

Bernard P Wolfsdorf

Bernard P Wolfsdorf

Immigration Attorneys Directory
Answered on

Yes, he can legitimately gift the funds to you. Be careful as you need to have 10 full-time employees and that will cost millions in wages. You must have these employees by the time you file the I-829 removal of conditions, if not earlier.

Belma Demirovic Chinchoy

Belma Demirovic Chinchoy

Immigration Attorneys Directory
Answered on

The law does not prevent this arrangement, but you should discuss the pros and cons with your attorney.

Dale Schwartz

Dale Schwartz

Immigration Attorneys Directory
Answered on

Yes, that’s ok. I have done that before.

F Oliver Yang

F Oliver Yang

Immigration Attorneys Directory
Answered on

There is no law that’s against it, but I think there are risks. USCIS can question whether your investment is a bona fide “investment” if they suspect that the transaction is not an arm’s-length transaction.

Lynne Feldman

Lynne Feldman

Immigration Attorneys Directory
Answered on

That should work since he doesn’t need EB-5 as well and provided the gift is not secured by the business as a loan.

Stephen Berman

Stephen Berman

Immigration Attorneys Directory
Answered on

In my opinion, it would not be likely to work. Because he is not actually giving you any money at all; it''s all on papers.

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