Marc_Roberts

Hi Everyone.

Firstly, going to take this chance in my first post to introduce myself and my situation and plans, so that anyone who can offer experience, advice or reccommendations for any future questions will know a little about me and my situation.

My name is Marc, and i'm a 27 Year old Web-site designer form Kent with no children and a degree in Visual Communication Design. Together with my best friend, Ben, also 27, a professional bartender, we are investigating into the possibilty of purchasing a British owned and run Pub & Restaurant in Central Florida in order to hold those Willy -Wonka style Golden Tickets known as E2 Visas to you and I !!!!

We have found the perfect business, being sold by a very nice English gentleman who has been running the business for fifteen years and is looking to retire finally within the next year. We have signed a confidentiality agreement with the business broker, who is a personal friend as well in Orlando, who happens to be british as well. And I have managed to see the last two years Tax Returns from the business this week.

Now, my first question really. How reliable is the amount shown on the Tax Return to be taken seriously in determining whether the profits and money really is viable in the sale price?? The business is up for $350,000 with the tax returns showing $198,000 Net profit and a further $56,000 in salaries (he pays his wife and son to work at the bar)????

Are these figures as accurate as they make out or is it easy to do a little 'creative book-keeping' these days in Florida?

Next question I hope all of you very nice and knowledgable people might be able to assist me in is this..... We are buying the business on a 50:50 basis so as to both own exactly half the business and get our visas together to run the bar. The financing for the business is coming from a friend of ours who is going to loan us the cash for the business and we will repay him from profits within two years. How do we go about showing the 'paper trail' from this loan to fully adhere to the Embassy rules reggarding this source of investment?? (Do we have to pay UK Tax on this loan??)

Also, how are the US Embassy viewing joint ownerhip at the moment, we both have no dependants, and I own a house in Kent that I rent out.

I know that it is down to whether the business can support two managers for the business, but the initial Tax returns show that two salaries are definately vuable from the profits as well as lots of scope for future employees etc. Which leads me to my last questtion of this introduction, but probably n way near all the ones I will be asking along this roller-coaster journey.....That is.....with regards to Bars and Restaurants, how are tipped personel viewed by the embassy come renewal time?? They will be emplyed on a minmum wage basis like all service industry staff etc. and will earn lots of money in tips, but is this class of employment still considered viable by the embassy come renewal time hopefully??

Well, that is about it for now. Very much look forward to all your advice and making a strong contribution to these boards in the coming year.

Many Thanks to all who kindly take the time to answer these initial questions.

MARC

fatbrit

If you're borrowing the full $350k, it's a non-starter already -- without the other issues your post brings up.

Marc_Roberts

Why is it a non-starter? And what are the other problems you noticed?

fatbrit

It must be your money at risk, not somebody else's. You can borrow a little, but not the full amount of the investment.

Marc_Roberts

Investor must be the source of the funds:

The investor must be the source of the invested funds and from a treaty country . Personal loans from relatives or friends can be considered part of your investment as long as the business is not collateral for the loan. Gifts of funds for the investment are also permitted.


- Taken from fromt page of http://www.visausa.com/visas/e2.php


?????????


Our friend is loaning us the colateral to purchase the business, he is british, and the loand will be from within the UK in Sterling.

Celsius

I'm not an expert on E2s but I wouldn't think of this visa as a "golden ticket" by any stretch of the imagination. You'll be running your own business so you'll be responsible for your:

own healthcare and dental
vacation time

... and an E2 does not (necessarily?) lead to permanent residence.

As a resident of the US, I would not recommend any "creative booking" under any circumstances because the IRS will be on your case and the consequences will be awful (possibly including deportation after you have paid fines/been imprisoned. I may be mistaken.)

This post is not legal advice by any stretch of the imagination.

Ray

Usually around a max of 25% of financing is allowed
You would need to get an accountant to check the figures

here's a good UK based lawyer for E-2
http://www.investorvisausa.com/index.html

and a florida forum for E-2s at www.thefloridaforums.com

Ray

At all is a better phrase ..I think the OP knows this by the willy wonka
mention

meauxna

Yikes, Marc, just look at that site.. I wouldn't take your immigration gospel from there...

Ray

They can sell you a nice ice cream parlor ...

and to the OP

Never use ..the all in one companies ....

fatbrit

Official sites end with a .gov.

This is a spam site that offers little except a way to relieve you of your money.

If you want to read the manual, it's here.

If you want independent advice, ask people who have done it (Ray gave you a link) AND independent attorneys with a proven track record. Do NOT take your advice from one-stop shops or people with a vested interest in the deal.

Folinskyinla

Hi:

You are talking about spending a lot of money, no? Consult with a lawyer. You might want to contact

<<specific lawyer's email address removed. Please send Private Message to poster for details.>>

Heywoodwest

Hi Marc and welcome to the site.

Here's my two pennyworth as someone who's been running a business for 10 months now on an E2 visa in northern New Hampshire. On the joint ownership question I think you need to talk with someone who's done it before (anyone out there?).

One aspect I picked up on when we applied for an E2 visa (bought business for cash, then left the chap in USA running the business whilst we got our E2 Visa - 9 months of frustration!). We were told we had to come for interview before our visa was approved - the usual turned down letter! What they seemed to be concentrating on was how many US citizens we were going to employ. As it was an existing business we were able to reassure the authorities that we were going to keep everyone on and in due course expand the business.

Now there is a bit of a Catch 22 situation with buying a business off a Brit if they are already on an E2 Visa. Easiest way to prove to the immigration people that you are committed to the purchase is to buy the business. However as soon as you do that, the person in the States loses his E2 qualification and has 3 months to get out. With a delay of many more months than that in your application going through, there's a problem. Okay, the immigration authorities are unlikely to turn up at his door and escort him over the border, but some way of committing funds without actually buying the business would be best - and for that you need a lawyer, as other posts have suggested.

Hope that makes sense, Good luck
David West