LLC? LLP? Inc.? Choosing The Right Structure For Your Business

Today’s post is written by guest author Kenneth Sprang, a corporate and international business transactional attorney based in the Washington, DC area.

In recent years the LLC has become the darling of entrepreneurs and small businesses around the country. But the LLC is not always the best choice. Sometimes a Subchapter S corporation or another structure is preferable. This article helps you choose the right structure for your new business.

Determine Your Long Term Goals

Is your goal to create a company that will grow and then go public, or be sold to a larger company for millions of dollars, or do you intend to run a small family business where you, members of your family, and perhaps a few trusted associates will be involved? Will you operate primarily in your home state, or will your focus be national or international? These questions are critical in deciding how to organize your new business. For example, if your goal is to be acquired or go public, you probably want to create a “C corp.” If you and a few friends or family members are creating a business that will not expand, at least in terms of owners, an LLC may be perfect. On the other hand, you may want the formalities of a Subchapter S corporation.

When to Use an LLC

LLC’s and corporations both insulate the owners from liability. An LLC has “members” rather than shareholders. The members can run the company or have one or more “managing members” do so. The LLC is an excellent tool for holding rental property–I recommend that each building be held by a separate LLC so that any liability is limited to that building. If your company is going to have only a few owners or members, an LLC may be ideal. The paperwork is somewhat simpler than a corporation (though many states allow “close corporations” in which the shareholders run the organization just like members of an LLC). The LLC is usually a good substitute for a sole proprietorship. Note that all income from the LLC will be treated as ordinary income and subject to FICA and income tax. Although you can elect to have an LLC taxed as a corporation, generally the LLC is taxed like a partnership or sole proprietorship and profits are distributed to the members and taxed as ordinary income.

When to Use a C Corporation

A C Corporation is a garden variety corporation with no limits on the number of shareholders it can have. If you want to grow your shareholders and maybe go public or be acquired, a C Corporation is generally the best choice. The local XYZ Store can be a C Corp, and IBM is a C corp. When creating a C Corporation, you will need guidance on how many shares to authorize and how many shares to issue. This is true for both a C corp and a Subchapter S Corp

When to Use a Subchapter S Corporation

If you create a corporation, you may file a form with the IRS asking to be treated as a Subchapter S Corporation. In order to qualify, the number of shareholders must be limited and no shareholder can be a corporation. The advantage of the Subchapter S Corporation is that profits or losses are passed directly to the shareholders and the corporation itself is not taxed. With a Subchapter S, you can pay yourself a salary but distribute some profits as dividends, possibly avoiding self employment tax on some income..

Where Should I Organize My Business?

Generally speaking, you can organize your business in any state where you have an actual presence. That can be the state where you live or it can be a state where you have an office. Many companies organize in Delaware, because Delaware does not require companies to have a physical office in Delaware. You can have your registered agent there serve as your office. There are three things to consider: First, where do you have a physical presence. Second, what are the franchise or similar fees charged in the states you are considering. For example, CA charges $800 a year, while Delaware charges less than $200 for a small company. Finally, in what state will your business be taxed and what are the tax rates there? If you can organize and operate your business in a state with lower tax rates, that is usually an advantage.

 Mr. Sprang is a corporate and transactional lawyer with special expertise in labor and employment law.  He represents business clients throughout the United States and in Europe. He can be reached at: DC International Counsel, 5335 Wisconsin Ave., NW, Suite 440, Washington, DC  20015, (202) 895-1504, Fax: (202) 403-3644;
ksprang@dcinternationalcounsel.com

 

 

 

EB-5 Regional Center List Grows; 2 New FL Projects

[NOTE: USCIS HAS UPDATED THIS LIST AS OF DECEMBER 2008. PLEASE SEE OUR LATEST ARTICLE HERE]

The Immigrant Investor (EB-5) Pilot Program is designed to encourage foreign investment by providing a vehicle for investment in the form of an economic unit called a “Regional Center.” The Regional Centers are private or public entities that have received government approval to participate in the program. They enable the amassing and pooling of capital for targeted investment in designated regions in the United States.

Quels Types d’Affaires Pouvez-Vous Faire avec un Visa B de Touriste ou Sous Le Programme d’Exemption de Visa?

Bien que les ressortissants étrangers ne peuvent vivre et travailler aux Etats-Unis avec un visa de tourisme et d’affaires (B-1 ou B-2) ou sous le programme d’exemption de visa, certaines activités commerciales sont autorisées. D’une manière générale, le visa B-1 d’affaires ou le programme d’exemption de visa permet les activités suivantes :

USCIS List of EB-5 Regional Centers; 2 New Centers in CA Approved

[NOTE: THE REGIONAL CENTER LIST HAS BEEN UPDATED. PLEASE SEE THE REVISED LIST HERE: EB-5 Regional Center List Grows; 2 New FL Projects]

The Immigrant Investor (EB-5) Pilot Program is designed to encourage foreign investment by providing a vehicle for investment in the form of an economic unit called a “Regional Center.” The Regional Centers are private or public entities that have received government approval to participate in the program. They enable the amassing and pooling of capital for targeted investment in designated regions in the United States.

International ODR Part 5: How To Select An ODR Leader

Today’s post concludes a series co-authored by attorneys Gini Nelson and Vonda K. Vandaveer on the use of online dispute resolution to solve problems associated with traditional ADR. [Earlier posts: Part One, Part Two, Part Three, Part Four.]

 This post addresses the question:

 Are There Special Considerations In Selecting An ODR Leader For Business Disputes?

Selecting the appropriate person to conduct your ODR is a critical element to success. ADR and ODR specialists are not interchangeable. ODR differs from ADR because the ODR dynamics and the technologies that must be managed are different than face-to-face dispute resolution processes.

Read the rest of this article, part 5 of a 5-part series, on Gini Nelson’s Engaging Conflicts blog.

International ODR Part 4: Does It Need To Be In The Contract To Do It?

Today’s post continues a series co-authored by attorneys Gini Nelson and Vonda K. Vandaveer on the use of online dispute resolution to solve problems associated with traditional ADR. [Earlier posts: Part One, Part Two, and Part Three.]

 This post addresses the question:

 My Contract Does Not Address ODR. Can I Take Advantage of It?

As with traditional ADR, ODR does not need to be specifically required in the contract. The only requirement is that both parties consent to ODR. In fact, even if you are the defendant in a case or feel as if the other party has all the power, you should still consider proposing ODR because the corporate culture of the opposing party might be to promote the use of ADR to resolve disputes.

Read the rest of this article, part 4 of a 5-part series, on Gini Nelson’s Engaging Conflicts blog.

International ODR Part 3: What Disputes Work Well for ODR?

Today’s post continues a series co-authored by attorneys Gini Nelson and Vonda K. Vandaveer on the use of online dispute resolution to solve problems associated with traditional ADR. [Earlier posts: Part One, Part Two.]

This post addresses the question:

What Disputes Work Well for ODR?

Online ADR works well for most business disputes, assuming the parties want to obtain a mutually-acceptable resolution to their problem as opposed to “winning.”

Read the rest of this article, part 3 of a 5-part series, on Gini Nelson’s Engaging Conflicts blog.

International ODR Part 2: How Does ODR Work?

Today’s post continues a series co-authored by attorneys Gini Nelson and Vonda K. Vandaveer on the use of online dispute resolution to solve problems associated with traditional ADR. [Earlier posts: Part One.]

This post addresses the question:

How Does ODR Work?

ODR takes advantage of technology that most everyone in business already uses, such as computers, internet, email, instant chat, video conferencing, telephone conferencing, and increasingly VoIP (e.g. Skype).

ODR is not radically different than ADR. In fact, ODR-ADR hybrids already are in common use. Traditional ADR is typically supplemented with online interactions such as email.

Just as with traditional ADR, there are several ways of conducting online ADR, depending on the technology available to the parties and the nature of the dispute.

Read the rest of this article, part 2 of a 5-part series, on Gini Nelson’s Engaging Conflicts blog.

ADR for the International Business: Online Dispute Resolution Breaks Down Logistical Barriers

For business leaders, alternative dispute resolution rather than litigation has no doubt become the preferred process for handling problems, thanks to its efficiency, cost-effectiveness, and flexibility.

As businesses become more global, however, the traditional methods of face-to-face mediation, arbitration or other dispute resolution processes pose significant logistical barriers to parties separated by oceans or continents, calling into question traditional ADR’s value in these circumstances.

Read the rest of this article, which is the first of a five-part series co-authored by attorneys Vonda K. Vandaveer and Gini Nelson, being published on Gini Nelson’s Engaging Conflicts blog.

What “Business” Can You Do on a B Tourist Visa or Visa Waiver?

While foreign nationals cannot live and work in the United States on a visitor visa (B-1 or B-2) or under the visa waiver program, certain business activities are allowed. As a general matter, the B-1 business visitor visa or visa waiver permits the following activities:

Visitors traveling to the United States to engage in commercial transactions, negotiations, consultations, conferences, etc.

Business that may be conducted on a regular tourist visa or under the visa waiver program include:

A. Engaging in commercial transactions that do not involve gainful employment in the United States (such as a merchant who takes orders for goods manufactured abroad);

B. Negotiating contracts;

C. Consulting with business associates;

D. Litigating;

E. Participating in scientific, educational, professional or business conventions, conferences, or seminars; or

F. Undertaking independent research.

The following specific business activities are permitted if you are entering the U.S. with a regular visitor visa or under the visa waiver program, according to the Department of State Foreign Affairs Manual and other sources as identified below:

1. Members of Board of Directors of a U.S. Corporation

A visitor who is a member of the board of directors of a U.S. corporation seeking to enter the United States to attend a meeting of the board or to perform other functions resulting from membership on the board.

2. Investor Seeking Investment in the United States

A visitor seeking investment in the United States, including an investment that would qualify him or her for status as an E-2 investor. Such a visitor is precluded from performing productive labor or from actively participating in the management of the business prior to being granted E-2 status.

3. Prospective Intracompany Transferee

A visitor coming to open or be employed in a new branch, subsidiary, or affiliate of the foreign employer, if the visitor will become eligible for status as an L-1 (intracompany transferee) upon securing proof of acquisition of physical premises (See CBP manual);

4. Commercial or Industrial Workers

A visitor coming to the United States to install, service, or repair commercial or industrial equipment or machinery purchased from a company outside the United States or to train U.S. workers to perform such services. In such cases, however, the contract of sale must specifically require the seller to provide such services or training and the visa applicant must possess specialized knowledge essential to the seller’s contractual obligation to perform the services or training and must receive no remuneration from a U.S. source.

These provisions do not apply to a visitor seeking to perform building or construction work, whether on-site or in-plant except for an alien who is applying as a B-1 for the purpose of supervising or training other workers engaged in building or construction work, but not actually performing any such building or construction work)

5. Business or Other Professional or Vocational Activities

A visitor who is coming to the United States merely and exclusively to observe the conduct of business or other professional or vocational activity may be classified B-1, provided the visitor is paying for his or her own expenses.

Visitors, however, such as students, who seek to gain practical experience through on-the-job training or clerkships must qualify for an H (skilled worker), L (intracompany transferee)  or J (exchange visitor) visa as appropriate.

6. Employees of Foreign Exhibitors

Employees of foreign exhibitors at international fairs or expositions who are not foreign government representatives ordinarily are classified B-1.

7. B-1 in Lieu of H-3 for Trainees

Visitors already employed abroad, who are coming to undertake training and who are classifiable as H-3 trainees may instead enter on a B-1 if the visitor demonstrates that:

A. The proposed training is not available in the visitor’s own country;

B. The visitor will not be placed in a job which is in the normal operation of the business and in which U.S. citizens and resident workers are regularly employed;

C. The visitor will not engage in productive employment unless such employment is incidental and necessary to the training; and

D.  The training will benefit the visitor in pursuing a career outside the United States;

E. The visitor will continue to receive a salary from the foreign employer and will receive no salary or other remuneration from a U.S. source other than an expense allowance or other reimbursement for expenses (including room and board) incidental to the temporary stay.

8. B-1 in Lieu of H-1B

There are cases in which visitors may be performing services in the U.S., such as assisting briefly on a highly technical project, but who do so under a B-1 instead of an H-1B.

As a preliminary matter, consular officers will require that the work to be done in the United States should be at the H-1B level (i.e. a specialty occupation normally requiring a bachelor’s degree) and the visiting employee should have a bachelor’s degree relevant to the services to be provided. (See e.g. U.S. Consulate in Chennai)

The critical criteria, though, for being eligible for the B-1 in lieu of the H-1B is that the visiting employee must not receive any salary or other remuneration from a U.S. source, other than an expense allowance or other reimbursement for expenses incidental to the visitor’s temporary stay. The remuneration or source of income for services performed in the United States must be provided by a foreign source. In other words, by the business entity located abroad.

Where a U.S. business entity has a separate business enterprise abroad, the salary paid by such foreign entity shall not be considered as coming from a “U.S. source,” according to the Department of State.

Thus, in order for an employer to be considered a “foreign firm” the entity must have an office abroad and its payroll must be disbursed abroad. The visiting employee must be employed by the foreign firm, the employing entity must pay the employee’s salary, and the source of the employee’s salary must be abroad.

*Please note the above list is not comprehensive. Other business-related activities may be allowed. Also, the list does not include the additional activities permitted under NAFTA to Canadian and Mexican citizen visitors.

AZ Employer Sanctions Law Upheld By Federal Court; Plaintiffs to Appeal Ruling

The controversial Arizona state law that threatens employers with closure of their business for hiring unauthorized workers passes Constitutional muster, ruled a federal district court judge.

Les Visas De Commerces et d’Investissements

Le visa non immigrant E est attribué aux citoyens de certains pays avec lesquels les États-Unis ont ratifié un traité de commerce ou autres accords. Il existe deux type de visa E. E-1 visa de commerçant connut sous le nom de «Treaty Trader» et E-2 visa d’investisseur connut sous le nom de «Investor Visa».

E-1 Treaty Trader Visa

Conditions requises :

Le visa E-1 «Treaty Trader» permet aux citoyens des pays membres du traité de venir aux États-Unis pour procéder à d’importants échanges commerciaux, y compris des échanges de services ou de technologie, et cela principalement entre les États-Unis et le pays membre du traité. Les conditions d’éligibilités sont :

1) Le demandeur doit être citoyen d’un pays membre du traité;

2) La compagnie s’installant aux Etats-Unis doit être de la même nationalité que le pays membre du traité;

3) Le commerce international doit être “substantiel” c’est-à-dire qu’il faut qu’il y ait un volume continu et important de transactions;

4) Les transactions doivent se faire principalement entre les Etats-Unis et le pays membre du traité (50% du commerce international réaliser doit être entre les Etats-Unis et le pays du demandeur du visa E-1);

5) Commerce signifie l’échange international de marchandises, de services et de technologie. Le titre de commerce des articles doit être transmis d’un partenaire commercial à l’autre;

6) Le ressortissant étranger doit occuper un poste en tant que superviseur ou cadre, ou posséder des compétences hautement spécialisées indispensables au bon fonctionnement de l’entreprise. Les employés n’ayant pas qualifications spécifiques ne seront pas éligible.

E-2 Treaty Investor Visa  

Conditions requises :

Le visa d’investisseur E-2 permet aux citoyens des pays membre du traité de venir aux Etats-Unis pour développer et diriger les opérations d’une entreprise dans laquelle l’investisseur a investi ou est sur le point d’investir d’important fonds. Les conditions d’éligibilités sont :

1) L’investisseur, soit une personne ou au nom d’une entreprise, doit être citoyen d’un pays membre du traité;

2) L’investissement doit être substantiel. Il n’y a pas d’exigence minimale fixée, mais une petite entreprise avec des fonds minimes ne réussira pas. L’investissement doit être conséquent pour assurer le bon fonctionnement de l’entreprise. Le pourcentage d’investissement d’une compagnie à bas revenus doit être plus élevé que le pourcentage d’investissement d’une entreprise à hauts revenus;

3) L’investissement doit provenir d’une entreprise existante. Tout investissement spéculatif ou latent ne sont pas éligible. Avoir des fonds libres et non engagés ou bien avoir des titres ne constitue pas un investissement.  De même que l’acquisition d’un bien immobilier dans l’attente d’une éventuelle plus value. Aussi, l’investissement doit être d’une entreprise commerciale, de ce fait les organismes à but non lucratif ne sont pas éligibles;

4) L’investissement doit être fructueux et ne doit pas uniquement servir à subvenir aux besoins de l’investisseur et sa famille, ou bien il doit avoir un impact économique significatif aux Etats-Unis;

5) L’investisseur doit avoir le contrôle des fonds et l’investissement doit être à risque. Les prêts avec actifs en garanties ne sont pas autorisés;

6) L’investisseur doit venir aux Etats-Unis pour développer et diriger l’entreprise. Si il n’est pas le principal investisseur, il doit être employé dans un poste de superviseur, cadre supérieure ou en tant qu’employé à compétences hautement spécialisées. Les employés n’ayant pas qualifications spécifiques ne seront pas éligible.

Demande de Visa : Le ressortissant étranger peut faire sa demande directement auprès du consulat des Etats-Unis dans son pays de résidence sans avoir au préalable une autorisation d’U.S.C.I.S.
Le ressortissant étranger peut également faire un changement de statut aux Etats-Unis, mais si il est appelé à voyager en dehors des États-Unis, il devra refaire sa demande de visa E auprès du consulat américain. Cette démarche peut entraîner un refus de visa et nuire au bon fonctionnement de son entreprise américaine.

Les documents requis pour la constitution de dossier peuvent être nombreux afin de répondre aux critères d’éligibilité au visa. Par exemple, les documents sur les activités de l’entreprise aux Etats-Unis devraient inclure, entre autres, un plan d’affaires, les preuves d’actifs et ou de l’investissement, les documents de constitution de la compagnie, photos des installations, et une description de la position ainsi que l’expérience du candidat.

Membres de la famille : Les membres de la famille (conjoint et enfants de moins de 21 ans) du commerçant ou de l’investisseur obtiendront le même type de visa que le titulaire principal, quelque soit leur nationalité. Les conjoints peuvent demander un permis de travail après l’obtention du statut du visa E.

Délai : les visas E-1 et E-2 sont initialement d’une durée deux ans, et peuvent être prolongé jusqu’à deux ans à la foi tant que le statut du visa E est maintenu.

Quotas : Il n’y a pas de quota pour les visas E-1 et E-2.

Liste des Pays traité : Pour obtenir la liste des pays membre du traité, visitez le Site web du Département d’État.

Renseignements supplémentaire : consulter également les renseignements relatifs au visa de travail L-1 et au visa d’investisseur immigrant EB-5 pour d’autres possibilités d’affaires.

States Cracking Down on Unauthorized Employment; Employers Fighting Back

Lately it seems the media has been teeming with stories on the backlash in states that have introduced legislation requiring employers to use a maligned federal database to verify a worker’s social security number.

In the past year or so, more and more states are contemplating or have already implemented legislation that compels employers to verify work authorization using the federal electronic verification program, called E-verify.

This week alone media reports on opposition to the forced use of the E-verify system included California, Texas, Arizona  and Kansas. Employers in Oregon are also rallying against proposed regulations targeting undocumented workers.

Implanter Une Compagnie Aux Etats-Unis

La création d’une compagnie aux États-Unis est relativement simple, peu onéreuse et plutôt rapide par rapport à de nombreux pays à travers le monde, et cela même si vous n’êtes pas citoyen Américain ou que vous ne vivez pas aux États-Unis. La création d’une société à l’exception de certaine entreprise ne requiert aucun capital minimum.

Cependant il n’est pas nécessaire d’être citoyen ou de résider aux Etats-Unis pour créer ou posséder une société ou être en partenariat. Il y a peux de restrictions et la création d’entreprise peut se faire dans certain cas en un jour. Par ailleurs il est conseillé de consulter les services d’un avocat afin d’avoir de plus amples informations quant aux différentes législations à travers chaque état.

Cette compagnie peut être crée dans l’état de votre choix. Si vous envisagez par la suite d’implanter votre siège social aux Etats-Unis, il sera préférable de le créer dans le même état pour une meilleure efficience.

Pour ceux qui ne résident pas aux Etats-Unis et qui n’ont pas de préférence pour s’implanter dans un état ou un autre en particulier, l’Etat du Delaware ou Nevada restent des choix judicieux en raison des conditions favorables à l’implantation des entreprises. Ainsi, les entreprises qui ont pour objectif d’ouvrir des filiales dans différents états commencent par implanter la société mère dans l’Etat du Delaware ou le Nevada.

Les étapes de base pour constituer société sont similaires d’un état à l’autre. L’Etat du Delaware étant le plus propice pour constituer une compagnie, nous servira d’exemple pour énoncer les différentes étapes :

1) Choisir la structure juridique de l’entreprise (ex. LLC ou Corporation). Le Secrétaire d’Etat du Delaware a un tableau de comparaison des différentes entreprises sur son site internet. Cette étape est l’une des plus critiques dans la création d’une entreprise aux Etats-Unis. L’entité que vous choisissez doit être très spécifique à vos besoins. Chaque structure juridique a ses avantages et ses inconvénients. Cette décision devrait être prise qu’après consultation avec un comptable, un avocat et autres professionnels qui peuvent avoir des informations et des conseils par rapport à votre nouvelle entreprise.

2) Choisissez le nom de votre compagnie : Assurez vous de choisir un nom original afin d’éviter les revendications d’une autre entreprise d’avoir utiliser son nom. Vous pouvez réserver votre nom avant de déposer les documents de formation de votre compagnie.

3) Prendre un agent enregistré ou bien «registered agent» : Avoir un agent enregistrée est exigée par la loi (certains états référent à un agent enregistre comme à un agent résident “résident agent”, mais ils ont le même rôle). Le but de l’agent enregistré est de réceptionner tous documents important, juridiques et fiscaux. L’agent enregistré est un individu ou une entreprise agréée par l’état pour agir en qualité de mandataire. Dans l’Etat du Delaware l’agent enregistré doit avoir une adresse (et non une boîte postale) est doit être disponible durant les heures ouvrables afin de pouvoir recevoir toute citations, notamment : préavis d’un litige pour toutes poursuites judiciaires à l’encontre de votre compagnie. Si votre entreprise est physiquement située dans le Delaware, vous pouvez donc agir comme votre propre agent enregistré. Si votre entreprise ne fait pas d’affaire dans l’Etat du Delaware, vous pouvez désigner un agent enregistré agréé. Il existe de nombreuses compagnies qui offrent ce service à travers les Etats-Unis et ceci à des tarifs raisonnable.

4) Enregistrer les documents de formation de l’entité de votre choix (par exemple pour une «corporation» il faut le «Certificate of Incorporation»).

5) Il vous faudra aussi obtenir pour votre entreprise un numéro d’identification de l’employeur connu comme le (EIN) ou bien le numéro d’identification fiscale fédérale auprès des bureaux de IRS (Internal Revenue Service). Ce numéro peut être obtenu via Internet. Ce numéro est nécessaire à des fins d’impôts et pour l’ouverture d’un compte bancaire.

6) chaque états pourraient avoir des étapes supplémentaire à accomplir tel que obtenir des permis ou l’enregistrement de l’entreprise auprès des collectivités locales ou organismes d’état afin que vous puissiez commencer à exercer votre activité.

L’IRS et les services fiscaux de l’état ont d’autres conditions à remplir lors de la création d’une entreprise. Par exemple, pour une corporation, le propriétaire doit décider si elle doit être une corporation C ou S. Chacune comportent différentes implications fiscales fédérales. Veuillez consulter votre avocat et votre comptable pour vous assurer que vous avez suivi toutes les procédures requises.

Pour Delaware, les coûts de formation comprennent :

- $ 89 comme frais d’enregistrement du Certificate of Incorporation

- $ 30 pour une copie certifiée conforme du Certificate of Incorporation.

- Les frais annuel de l’agent enregistré dans le Delaware peuvent être $ 50. Les taux varient dans chaque états. Le Secrétaire d’État du Delaware maintient une liste des noms des agents du Delaware sur son site Internet.

- L’obtention de permis supplémentaires peuvent induire d’autres frais : frais d’avocat, de comptable et autres honoraires professionnels. Ces frais varient d’un endroit à l’autre.

Voir aussi notre article à ce sujet, Comparison of Business Forms.

Employer Prosecutions Under AZ Sanctions Law On Hold Until March 1 Pending Court Ruling

Employers in Arizona received a reprieve until March 1, 2008 from prosecutions under a precedent-setting employer sanctions law pending a federal court ruling in a constitutional challenge to the state regulation.

AZ Employer Sanctions Law Clears Court Challenge for Implementation; Which State is Next?

Arizona employers are coming closer to being forced to use a maligned federal government database to verify the work eligibility of all hires or risk their business licenses under a controversial new state law.

Updated List of Regional Centers for EB-5 Immigrant Investor Pilot Program as of October 2007

PUBLISHER’S NOTE: SEE OUR UPDATED LIST AS OF MAY 2008 HERE USCIS LIST OF APPROVED REGIONAL CENTERS; 2 NEW CENTERS IN CA APPROVED.  

The Immigrant Investor (EB-5) Pilot Program is designed to encourage foreign investment by providing a vehicle for investment in the form of an economic unit called a “Regional Center.” The Regional Centers are private or public entities that have received government approval to participate in the program. They enable the amassing and pooling of capital for targeted investment in designated regions in the United States.

For the Investor, these Regional Centers are attractive because they allow for a less restrictive job creation requirement. Instead of having to prove direct job creation, the investor may show indirect job creation through such methods as economic and statistic forecasting tools.

Please note that this pilot program expires in November 2008 unless reinstated

In November 2007, USCIS released to AILA the following list of “active” regional centers as of October 2007.

Regional Centers that may have been approved, but were not designated as “active” by USCIS are not included in this list.

As the status of these Regional Centers as participants in the Pilot Program can change, before investing any money, verify the center is still approved and active in the Pilot Program.

For more information on the EB-5 Immigrant Investor visa see our other article EB – 5 Permanent Residency through Investment.

In alphabetical order by state, the Regional Centers deemed “active” as of March 2007 include:

New I-9 Form Released; 5 Docs Removed From Acceptable List For Employment Verification

USCIS has released the new Form I-9 required to be completed by all employers to verify a new employee is authorized to work in the United States. The most significant change is the removal of five documents from the list of those that may be used to verify identity and employment eligibility and the addition of one new, acceptable document, according to the press releases issued by USCIS Nov. 7.

Employers should immediately begin using the updated I-9 for any new employees. Employers do not need to fill out the new form for existing employees, but will need to use it when re-verification is required.

The five documents that are no longer acceptable proof of identity or employment are:

• Certificate of U.S. Citizenship (Form N-560 or N-561)

• Certificate of Naturalization (Form N-550 or N-570)

• Alien Registration Receipt Card (I-151)

• Unexpired Reentry Permit (Form I-327)

• Unexpired Refugee Travel Document (Form I-571)

One new document was added to List A of the List of Acceptable Documents:

• Unexpired Employment Authorization Document (I-766)

USCIS said these forms were removed because they lack features to help deter counterfeiting, tampering, and fraud.

The new, acceptable document is the most recent version of the Employment Authorization Document (Form I-766).

In total, the revised list of acceptable documents now includes:

• U.S. passport (unexpired or expired)

• Permanent Resident Card (Form I-551)

• Unexpired foreign passport with a temporary I-551 stamp

• Unexpired Employment Authorization Document that contains a photograph (Form I-766, I-688, I-688A, or I-688B)

• Unexpired foreign passport with an unexpired Arrival-Departure Record (Form I-94) for nonimmigrant aliens authorized to work for a specific employer

The Form I-9 is available in English and Spanish. However, only employers in Puerto Rico may have employees complete the Spanish version for their records. Employers in the 50 states and other U.S. territories may use the Spanish version as a translation guide for Spanish-speaking employees, but must complete the English version and keep it in the employer’s records. Employees may also use or ask for a translator/preparer to assist them in completing the form.

The new Form I-9 and M-274 handbook with detailed instructions for completing the form are available on the USCIS website. Brief instructions are available here. Forms may also be obtained by calling USCIS at 1-800-870-3676 or the national customer service center at 1-800-375-5283.

Rumors True: DHS Issuing New I-9 Employment Eligibility Verification Form

After initially denying rumors a new I-9 form was on its way, DHS has just informed AILA the new form and employer handbook may arrive as early as the week of Nov. 5.

Using A Do-It-Yourself Incorporation Service: One Company’s Tale

Do-it-yourself incorporation services abound on the internet, and with their low price they are enticing to aspiring business owners, especially in the start-up phase when the owners are trying to save as much money as possible. In the end, though, they can cost your company a lot more in both time and money if you don’t know what you are doing, as one business owner recently found out.