EB5 Investors Magazine Volume 5, Issue 2 - Page 40

THE BASICS OF EB-5 "...whether you go with the direct or regional center EB-5 model, it is critical to hire an experienced EB-5 team...." should be aware that although their family members can work for the direct EB-5 project, they do not count towards the required creation of a minimum of 10 full- time jobs. It’s easy to overlook or underestimate how much minimum wage for 10 full-time jobs is. Depending on your location and business, it can very well be $200,000 to $300,000 per year.  Record Keeping and Proving Job Creation In addition to the difficulty of opening a business in a foreign country in compliance with local business and labor laws, EB-5 job creation requirements are more strenuous. Let’s consider you’re an aspiring Korean BBQ restaurant franchisee. There are numerous threats to the viability of your business. In addition to stemming the initial challenges of getting your restaurant into the black and keeping a steady stream of customers, you now have to be responsible for documenting and maintaining copious amounts of paperwork to prove job creation. About two years later, you will have to begin organizing paperwork to prove job creation for your Form I-829 petition. If you’re a direct EB-5 project, you begin to wade through a maze of foreign terms that appear 39 EB5 INVESTORS M AGAZINE vaguely English: I-9 paperwork, E-Verify, W-2 forms and so forth. On the flipside, if you are using a regional center, proving job creation can be as simple as providing evidence to verify the line items you’re using for job creation. Often times, that will be construction expenditures and operational revenues. This greatly simplifies the document keeping process and minimizes your exposure as a business owner because you won’t be responsible for other people’s immigration violations. THE ROLE OF A PROFESSIONAL EB-5 TEAM Moreover, whether you go with the direct or regional center EB-5 model, it is critical to hire an experienced EB-5 team. In addition to an experienced EB-5 counsel, your business plan writer, economist and securities/ transactional/corporate counsel will be critical to the success and safety of your EB-5 project as well. Business Plan and Economic Analysis While you may know your busine