Legal Question in Business Law in New York
Non-Resident buying business in United States
Hi, thanks very much for the service.
This is my situation, im very interested in buying a established Business in New York, im planning to invest around 70,000 to 75,000 dollars, i have b1/b2 10 years business/tourist visa, i already know that im not allowed to manage or direct a business in U.S. but i read that im allowed to INVEST in U.S., i have a cousin, he is my family over there,
he is a resident alien, my plan is to buy the business ME as INVESTOR/OWNER and him as MANAGER/DIRECTOR of the business, the thing is i want it under my name regardless, to have my investment secure, can i have the business under my name as investor and him as the director??? i will not be there residing, i will be visiting every 3 months, he will make all the business responsabilities, let me know thanks!!!!!!!
3 Answers from Attorneys
Re: Non-Resident buying business in United States
Putting aside the immigration issues, if allowed, you can draft the corporate documents to divide control and ownership of the company.
Re: Non-Resident buying business in United States
It is possible to do, but you will probably want an attorney drafting the documents to make sure that you and your cousin's rights and responsibilities are clearly set forth.
Re: Non-Resident buying business in United States
Yes, I agree with the other attorneys responding to your question, so long as you stay a passive investor, you should not have a problem with your immigration status. Naturally, if you make frequent trips to the U.S., you may be questioned about the nature of your real (not just how it's papered up) involvement in the company, and you would need to take care not to cross the line between ownership and management of a business, which if done incorrectly may result in unauthorized employment and all kinds of immigration problems for you.
With respect to your apparent lack of confidence in your relative here, keep in mind that becoming a shareholder alone and appointing others directors and officers would not give you much day-to-day control over the business. Consult a business attorney to draft agreements properly (the same applies to your acquisition of assets or shares of the business no matter how small the purchase price is).
The above reply is in the nature of general information only, is not legal advice and should not be relied on as such. No attorney-client relationship is to be implied from the posting.
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