By Isaul VERDIN, Esq.
October 24, 2016
The US government has proposed a program to benefit international entrepreneurs that want to launch start-ups in the US. This program will benefit foreign nationals wanting to quickly launch their start-up companies by allowing them a temporary permit for the purpose of raising capital and initiating operations.
Since the US government has not officially implemented this program, international entrepreneurs need to begin to lay down the foundation to capitalize on this opportunity, which will likely take effect within the next six to nine months.
The following are three tips to begin planning for this opportunity:
- Form a C corporation. Consult with a business lawyer to organize your corporation in a business friendly state such as Delaware or Texas. Although there are multiple legal structures to form a business, a C corporation lends itself to attract investors.
- Prepare and Execute. Devise a thorough business plan and begin to work on your minimum viable product (“MVP”). This early preparation and execution will allow you to attract angel investors. You will present this business plan to investors and to the U.S. Citizenship & Immigration Services (“USCIS”). When approaching angel investors, you will want to ensure they are accredited investors. Eventually, you will have to submit evidence to USCIS that the investors are accredited.
- Raise Capital. As of right now, you should aim to raise $345,000 in start-up capital. When selling equity in your company, ensure you retain at least 15% of the equity in the company. However, more importantly, you must establish that you have retained operational control of the company by filling an executive position that exerts operational and functional leadership over the company.
Once USCIS announces the details of the program it will be critical to focus on executing a plan that will place the start-up company in a position to generate increasing revenues and to create job opportunities.