In This Issue - November 2009

Highlights and Horrors of Corporate Immigration

New Median Income Figures Released Effective November 1, 2009


HIGHLIGHTS AND HORRORS OF CORPORATE IMMIGRATION

One of the avenues in which to immigrate to the U.S. without a "sponsor" is by starting or purchasing an existing business in the U.S.. Many people have a misguided notion that by doing this, they will ensure their permanent residence in the U.S.. However, there are several types of visas for the business route. This article will explore them and their viability for permanent residence in the U.S..

First and foremost is the straight E-2 investor visa. E-2 visas are a good way to temporarily immigrate if the U.S. and the country of origin have a treaty for this purpose. This visa is designed for a foreign national investing in an existing U.S. business or one who would like to start up a U.S. business from scratch. One of the major criteria for this visa is the substantiality of the investment. This is easily determined with a business purchase, but more difficult with a start up. For example, if an investor is purchasing a beauty salon that has a sales price of $150,000 and wants to put $100,000 down and finance the balance over 3 years, this would be a substantial amount invested. However, if the investor wants to start a new salon and invests $50,000, this may not reach the criteria, and the visa may be denied. The next major requirement for the visa is that the investment must not be "marginal". This means that the profit from the corporation must be greater than just providing income for the investor to live. Typically, a start up salon will not meet this requirement; however, a full service salon that has been in business for a while may. E-2 visas are only temporary and do not lead to permanent immigration unless the business employs 10 U.S. workers and approximately $1,000,000 has been invested.

Next, there is the L-1A visa or intracompany transfer visa. This visa is designed to transfer a manager or an executive from abroad to an affiliated company in the U.S.. In this situation, the corporation abroad can open a new office in the U.S., and it is not subject to the E investment requirements above. Rather, the company must show that it is well capitalized enough to start the operations and keep them running in the first year. Further, the individual must not engage in the day to day operations of the business, but be a full manager or executive by the end of the first year. The mistake that many people make is that they do not follow their original business plan and have no other employees by the end of the first year. Then, the visa cannot be extended, and they cannot apply for residency. However, if everything is followed correctly, after one year, the manager can apply for permanent residency and remain here indefinitely.

We have witnessed many horror stories over the past 20 years with these visas. People are often misguided about the visas. After investing in an E enterprise, the company may go out of business or do very little business. Then, when the visa is about to be renewed, the people start to panic. Rightly so, in this situation, the renewal is denied almost every time! Additionally, with the L-1 visa, in order to prove that the person is a manager or executive, they must manage other supervisory personnel. Therefore, by the third quarter of the start up, there should be payroll tax returns filed for these individuals. However, many times, this is not done. Again, renewing this visa is next to impossible without being able to prove they manage other personnel.

The best advice that we can give our clients is to have a good, solid business plan as well as a good immigration attorney. We offer a free, initial consultation and have almost 20 years experience with corporate immigration. Attorney Jacobs holds her Juris Doctorate from the University of Florida College of Law. Her practice is limited to Immigration and Bankruptcy.

NEW MEDIAN INCOME FIGURES RELEASED EFFECTIVE NOVEMBER 1, 2009

Household size amount

• 1 $41, 226
• 2 $52,259
• 3 $58,574
• 4 $69,009

Add $6,900 per person for families in excess of 4 people

Effective November 1, 2009, we will use the new median income to determine Chapter 7 viability. This income has fallen substantially in the past 6 months which may increase the number of Chapter 13 filings. When computing whether a person falls under the median income, there is a 6 month look back period which ends the last day of the month prior to filing the petition.

If an individual makes over the median income amount, this does not necessarily mean that they cannot file a Chapter 7. There are two additional steps to the mean income income test that can show eligibility. Often, if you own a home with a mortgage or pay child support, you will still qualify.

In order to find out if you qualify for a Chapter 7, we offer a free initial consultation with the attorney.