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I will tell you what we would like to accomplish, what we know though research and we need advise from you what best way to carry the plan out.

I. What we would like to do

My Vietnamese wife has filed petitions for her three sisters from Vietnam to become permanent residents under F-4 category. The waiting time for F-4 is about 12 years. Five years have past so 7 more years to go. That is a long time and she's been looking for a quicker way. Here is the plan, in general, she will build business for them in US so they can come over by Employment-Base Immigration avenue, EB-5.

  • First she will give them cash gifts
  • Then with their contributions they will create an investment club LLC that they are partners
  • Then they'll trade stock to be build more capital
  • Then they use the capital to buy businesses or shares in regional centers

II. What we know through research

  • My wife can give each of them a cash gift of up to $14,000 with tax exemption.
  • In general, my wife can create an LLC with her sisters as foreign partners.
  • As the manager of the LLC she can open a trading account with a brokerage firm and trade.
  • After a year or two we use the capital to buy businesses or shares in regional centers.

III. What we don't know and have questions

  • Is the plan legal?
  • We don't know the detail of structure of the LLC?
  • We don't know what state is best to file the LLC tax-wise. Delaware preferable? . What is withholding for Vietnamese investors strictly with US brokerages? . How do her sisters file tax returns to IRS?

We know that's a pretty tall order to achieve but at least we are willing to try. Would you please help us. :)

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  • Don't forget the $14k exemption is a per year exemption, but you also have the larger 'lifetime' exemption, which you can allocate funds at any time to (but have to file paperwork, I believe).
    – Joe
    Commented Feb 24, 2015 at 21:08

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The LLC portion is completely irrelevant. Don't know why you want it. You can create a joint/partnership trading account without the additional complexity of having LLC. What liability are you trying to limit here?

Her sisters will file tax returns in the us using the form 1040NR, and only reporting the dividends they received, everything else will be taxed by Vietnam. You'll have to investigate how to file tax returns there as well.

That said, you'll need about $500,000 each to invest in the regional centers. So you're talking about 1.5 million of US dollars at least. From a couple of $14K gifts to $1.5M just by trading? I don't see how this is feasible.

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  • Ah hah! How is a partnership trading account created? I there a form to fill out, an example etc?
    – ngungo
    Commented Dec 26, 2014 at 19:48
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    @ngungo call your favorite broker and ask.
    – littleadv
    Commented Dec 26, 2014 at 20:09

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