The Limited Partnership Structure: How it Works for EB-5 Investors
In the EB-5 Investment Visa program, investors using Regional Centers like American Life, Incorporated often take advantage of the limited partnership structure. If you’re new to US investment, you may have some questions about what a limited partnership is and how it can be an advantage for you. Today, we’ll talk about this type of partnership and how it fits into your goals as an EB-5 investor.
Limited partnerships are businesses with one or more general partners and one or more limited partners. The general partner has a very active role, managing the day-to-day business of the organization and assuming a personal liability for its success. Limited partners are less active. They invest in the business but don’t manage its day-to-day operations. Their liability is limited to the amount that they invested. They have less influence in how the business operates, but a lighter responsibility for any liabilities connected to it.
Although limited partners are less active in the business than general partners, they still qualify as having an active management in it for purposes of the EB-5 visa program.
Most investors enter the EB-5 program for its visa benefit, a way for investors and their families to live in the United States while benefitting its economy with new jobs. Satisfying its active management requirement through a limited partnership means that you can live anywhere in the US and don’t need to be near the business, because you won’t have to run its day-to-day operations. You’re still providing the jobs that help the US economy while benefitting your family with resident status in the US.
Each quarter, a limited partnership distributes profits based on the organization’s available cash flow and the percentage share of each partner. Percentage shares are determined by your investment amount. Limited partners receive regular profit and loss statements describing these distributions, and an annual K-1 form from the IRS to use when preparing annual tax returns.
At American Life, Incorporated, each partnership usually owns a single property, with your percentage share determined by the amount of your investment relative to the value of the project. The minimum investment amount for most projects at American Life, Incorporated, is $500,000.
The limited partnership structure lets foreign investors enjoy the benefits of residency status in the US while providing jobs and opportunities to the US economy. As a registered Regional Center, American Life, Incorporated makes it easy to choose the right investment for your EB-5 visa program participation. Our investment professionals are available to answer any questions about your limited partnership status and will help you choose the best investment opportunity for your individual needs. Contact us online today, call us at 206-381-1690, or visit our US office at 2710 S. Hanford Street, Suite 100, in Seattle, Washington or any of our international offices in Shanghai, Tokyo, or London to get started on your EB-5 investment.