Foreign National Business Formation and the EB-5 Visa Process in Colorado

by | May 16, 2017 | Business News, Misc. Legal Tidbits, Random Thoughts

Foreign National Business Formation and the EB-5 Visa Process in Colorado

Congress, in its quest to keep our economy healthy, looks for ways to invite business owners and entrepreneurs from other countries here, to our shores, to build, manufacture, and employ our citizens. The good news, if you are a foreign national looking for a chance to become a U.S. business owner, is that you don’t have to be a multi-national conglomerate to own a business here in the United States.

USCIS administers the EB-5 program, created by Congress in 1990 to stimulate the U.S. economy through job creation and capital investment by foreign investors.

The EB-5 program doesn’t restrict visas to large corporations like Toyota and Siemens. Instead, it requires foreign investors invest in a new commercial enterprise or rescue a troubled business where they will continue to employ the existing employees for at least two years.

U.S. Citizenship and Immigration services (USCIS) describes new commercial enterprise as for-profit activity formed for the ongoing conduct of lawful business including by not limited to:

  • A sole proprietorship
  • Partnership (whether limited or general)
  • Holding company
  • Joint venture
  • Corporation
  • Business trust, or
  • Other entity, which may be publicly or privately owned

There are a few catches, but if you can overcome them, you can set up shop in the United States as a foreign national. What seem to be the more challenging requirements? You have to be able to hire or employ 10 qualifying employees, and you need to be able to invest a substantial amount of capital.

A Foreign National Owned Business Must Provide Employment for 10 Qualifying Employees

Keeping in mind that the qualifying employees can be existing employees, as an Eb-5 foreign national owned business you must provide employments for 10 qualifying employees. A qualifying employee is described by USCIS as follows:

A qualifying employee is a U.S. citizen, lawful permanent resident or other immigrant authorized to work in the United States including, but not limited to, a conditional resident, a temporary resident, an asylee, a refugee, or a person residing in the United States under suspension of deportation.

However, “this definition does not include the immigrant investor; his or her spouse, sons, or daughters; or any foreign national in any non-immigrant status (such as an H-1B non-immigrant) or who is not authorized to work in the United States.” Which means your family can of course come with you, but if you hire a friend or family member who is also a foreign national, their job may not count toward the requirement to employ ten qualified people.

EB-5 Capital Investment Requirement

The EB-5capital investment requirement is pretty steep, but you can cut the amount required in half if you are willing to invest in a High Unemployment or Rural Area. The minimum general qualifying investment amount is $1 million, but the investment requirement in a Targeted Employment Area (High Unemployment or Rural Area) is on only $500,000.

There are a lot of rules and requirements that extend beyond this surface explanation, but if you are a foreign national who has a business idea or an entrepreneurial skill set that you believe would prosper well in the United States, it is worth your time to talk to an attorney who is familiar with the law and has experience preparing EB-5 visa applications.

Foreign National Business Formation in Colorado

Our state, like many U.S. States, has a Regional Investment center designed to attract Foreign National business formation in Colorado. The Colorado Regional Center describes EB-5 investment as “an alignment of interests” which allow immigrant investors the opportunity to “live, work, attend school, or retire anywhere in the U.S.” Their website lists a host of benefits, including a path to citizenship if that is your ultimate goal.

  • The investor does not have to be sponsored
  • The process for approval is relatively fast compared to other visa programs
  • The investor has more freedom of travel
  • The investor has increased US educational opportunities (including residency benefits for dependent students) and
  • The investor has the opportunity to become a U.S. citizen after five years

The EB-5 visa program is thriving in Colorado, and many areas of the state are welcoming and diverse, making it a popular alternative to more expensive East and West coast investment possibilities. If you are a foreign national with an interest in investing in or operating a business here in the United States, or have questions about foreign national business formation and the EB-5 visa process in Colorado, contact me, Elizabeth Lewis, at the Law Office of E.C. Lewis, P.C., home of your Denver Small Business Attorney. Phone: 720-258-6647. Email: elizabeth.lewis@eclewis.com

Contact Us Today

Law Office of E.C. Lewis, P.C.
Your Denver Business Attorney

LICENSED IN COLORADO AND NORTH CAROLINA

501 S. Cherry Street, Suite 1100
Denver, CO 80246
720-258-6647
Elizabeth.Lewis@eclewis.com

Online at:

3 Things to Know Before Starting an Online Business

by | Mar 15, 2017 | Business News, Internet Law, IP Law, Online/Social Media Law

3 Things to Know Before Starting an Online Business

Article originally published March 15, 2017. Updated October 8, 2025.

Overview:

Launching an online business may seem simpler than managing a physical storefront—but hidden legal risks can quickly complicate your startup. From selecting the right business structure to protecting your domain and digital assets, and ensuring advertising contracts don’t trap you in poor agreements, every decision matters. Before you go live, consult a small business attorney who understands online ventures to safeguard your operations, reputation, and long-term growth.

It seems simple – no lease to sign, no building to maintain or insure, fewer employees to manage. Online is easy, and starting up a new business is as simple as building a website! Only, it’s not. More often than not, I end up helping small business owners with issues they could have avoided if they had sought advice before starting an online business.

Based on the issues I am most often asked to address after the fact, there are three things I would advise a new online startup to understand before jumping in:

  1. What type of business form is correct for my situation?
  2. What type of control am I giving to my web developer?
  3. How will I terminate an advertising and promotions contract?

The Correct Form for an Online Business

The rules governing your information technology company, information services company, or online business are different than a traditional brick-and-mortar business. There are the typical business formation questions; should you form your business as a corporation or LLC, for example. But it is also important to understand the legal implications of having a brick-and-mortar store with an online presence, or even transitioning your brick-and-mortar store to being solely online. And while it may look more affordable to ditch the brick-and-mortar storefront for a website, your agreement with the company that creates and maintains a website for you is in many ways similar to a lease. Signing a contract with a questionable company can cause you just as much grief as bad landlord.

Controlling Your Online Assets

With the growth of the internet and information technologies, more and more businesses are based completely online. An online business can include online advertising, a social media presence, and online sales of physical products, all of which come with their own set of legal ramifications. Whether your business is an information technology business, IT services business, supplements its income with an online store, or is completely online, you will probably be signing contracts with web development firms who will help you build and maintain your website. It is crucial that you understand what you are agreeing to when you allow someone to build a website for you. I hear stories all the time from developers such as:

I was being asked to build a third website for her, after two previous contractors failed to deliver a finished product, or failed to deliver a quality product. When I attempted to set up her new site, I found the previous developer had moved her domain, which she had owned and had control of for many years. She had given them permission to do so, but she didn’t understand that she was giving up control of her URL when she did. In addition, the company she contracted with to build her previous site had been controlling and filtering her email. She spent days on the phone trying to end the contract and get her domain and email back, and she lost much of her email history, and all of her website content in the process.

Unfortunately, this is a typical and frustrating scenario I hear from newcomers to online businesses. Another stumbling block I see small business owners encounter as they enter the online world involves contracts with companies that offer to help with advertising and promotion.

Promoting Your Online Business

Promoting your online business comes with it’s own set of concerns, whether you do it yourself or hire someone to help you. Some contracts tie you to a service regardless of whether or not it performs well for you – in this case, what you don’t know about social media, advertising, and promoting a business online can really hurt you. Again, a trusted advisor who understands internet technologies, and online business promotion can really help here. Until you have some experience and know what works for you, ask someone who does to recommend a company that can do it for you, or train you to do it yourself.

Even if you are an experienced entrepreneur, you will face challenges as you enter the online world and perhaps encounter unscrupulous actors offering to help you launch an online business. An attorney can help you make sure that important assets, such as your domain name, remain in your control. It is also very important that a clear means for you to retain the contents and coding for your website exists, even if you choose to end the relationship with the contractor or company that builds it for you. These, and other concerns can be avoided just by getting a good referral to a reputable firm. An attorney with a strong background in IT and online business practice can guide you to reputable firms, and make sure the contracts you sign are fair.

Contact Denver business attorney Elizabeth Lewis

If you need guidance concerning the formation of your online business, or help reviewing a contract with a web developer or firm offering to promote your business online, contact me, Elizabeth Lewis, at the Law Office of E.C. Lewis, P.C., home of your Denver Small Business Attorney. Phone: 720-258-6647. Email: elizabeth.lewis@eclewis.com

Contact Us Today

Law Office of E.C. Lewis, P.C.
Your Denver Business Attorney

LICENSED IN COLORADO AND NORTH CAROLINA

501 S. Cherry Street, Suite 1100
Denver, CO 80246
720-258-6647
Elizabeth.Lewis@eclewis.com

Online at:

Business Tax Planning and Important 2017 Due Dates

by | Mar 1, 2017 | Misc. Legal Tidbits, Random Thoughts

Business Tax Planning and Important 2017 Due Dates

Do you really want to make tax time a lot less stressful? Add your tax filing deadlines to your calendar right now, with lots of digital reminders to get it done! If it has been a challenge in the past, consider making a list of all the steps you need to take to be prepared, and breaking those steps down on your calendar with lots of digital reminders. Here is a typical list you might make, giving yourself time each day or week to work on the individual items:

  • appointment with tax accountant (these fill up fast, so today is a good day to arrange this!)
  • review last years taxes to see what forms will likely be due
  • add due dates for various filings to my calendar
  • make sure books are current
  • meet with tax accountant
  • confirm filings are ready to mail (a week before the deadline is nice!)

As a Colorado small business attorney, I know how stressful preparing for tax time is, so I am sharing some dates I hope will be helpful to you in planning and preparing for your tax payment deadlines. While it is easy enough to Google due dates, you may want to read over this list to make sure you have not forgotten anything. As always, be sure to check with the IRS or your accountant to make sure you are up to date on all the requirements.

Partnership Tax Returns

Partnership tax returns are due March 15, not April 15 as used to be the case. This change occurred in 2016. If your partnership isn’t on a calendar year, it is due on the 15th day of the third month following the close of your tax year.

Partnerships: Form 1065. This form is due on the 15th day of the 3rd month after the end of the partnership’s tax year. Provide each partner with a copy of their Schedule K-1 (Form 1065) or substitute Schedule K-1 (Form 1065) by the 15th day of the 3rd month after the end of the partnership’s tax year. Form 7004 is used to request an automatic 6-month extension of time to file Form 1065. ~IRS.gov

Corporations and S Corporations Tax Returns

Corps and S corp tax returns are due April 15th, not March 15 (if your tax year ends in December). The language is a little confusing, so ask your small business attorney or tax accountant for help if you are not sure what the IRS is trying to say. Here is the official wording:

Corporations and S Corporations Tax Returns: Form 1120 (or Form 7004). This form is due on the 15th day of the 4th month after the end of the corporation’s tax year. However, a corporation with a fiscal tax year ending June 30 must file by the 15th day of the 3rd month after the end of its tax year. A corporation with a short tax year ending anytime in June will be treated as if the short year ended on June 30, and must file by the 15th day of the 3rd month after the end of its tax year. ~IRS.gov

If you need more time to complete your 2016 business tax return, you can request an extension. Keep in mind, even if you file the extension, you are required to calculate how much you owe and send in the estimate by the due date – which means you will still need your accountant’s help prior to the deadline. Make that appointment now, to insure he or she can fit you in. If you do not include the estimated taxes, the IRS can invalidate your extension and you will be stuck with penalties.

Review these additional dates to make sure you are not forgetting something:

Individual Tax Returns – Tuesday, April 18

Because April 15th falls on the weekend again this year, individual tax returns (or request for extension) are due on Tuesday, April 18th. Normally, they would be due on Monday, April 17th, but a holiday impacts the due date this year:

The filing deadline to submit 2016 tax returns is Tuesday, April 18, 2017, rather than the traditional April 15 date. In 2017, April 15 falls on a Saturday, and this would usually move the filing deadline to the following Monday — April 17. However, Emancipation Day — a legal holiday in the District of Columbia — will be observed on that Monday, which pushes the nation’s filing deadline to Tuesday, April 18, 2017. Under the tax law, legal holidays in the District of Columbia affect the filing deadline across the nation. ~IRS.gov

Estimated Taxes

Before you worry about paying estimated taxes, make sure you need to.

Individuals, including sole proprietors, partners, and S corporation shareholders, generally have to make estimated tax payments if they expect to owe tax of $1,000 or more when their return is filed. Corporations generally have to make estimated tax payments if they expect to owe tax of $500 or more when their return is filed. ~IRS.gov

The IRS provides good guidelines for who does and does not need to pay estimated taxes. If you are not certain, check with your tax accountant sooner than later. If you do need to pay estimated taxes, be familiar with the following quarterly estimated tax due dates:

First Quarter Estimated Taxes
First quarter estimated taxes are due on the same day as your individual tax returns

Second Quarter Estimated Taxes – June 15th
No holidays or weekends will alter the June 15th second quarter estimated taxes due date.

Third Quarter Estimated Taxes – September 15th
Third quarter estimated taxes are due.

Fourth Quarter Estimated Taxes – January 15th, 2017
Fourth quarter estimated taxes are due.

Other Tax Due Dates and Deadlines

  • Last day to contribute to IRAs, HSAs, or 401Ks : Tuesday April 18th for 2017
  • Last day for Americans living abroad to file individual taxes: June 15th for 2017
  • FBAR aka FinCEN Form 114: The due date for foreign account FBAR forms, also known as FinCEN Form 114, goes from June 30 to April 15 (you can get a six-month extension, just like tax returns.) FBARs are important if you had foreign accounts that topped $10,000 at any time during the year.

If you need help figuring out your tax year, or need a good referral to a trustworthy and capable tax accountant, contact me, Elizabeth Lewis, at the Law Office of E.C. Lewis, P.C., home of your Denver Small Business Lawyer. Phone: 720-258-6647. Email: elizabeth.lewis@eclewis.com

Contact Us Today

Law Office of E.C. Lewis, P.C.
Your Denver Business Attorney

LICENSED IN COLORADO AND NORTH CAROLINA

501 S. Cherry Street, Suite 1100
Denver, CO 80246
720-258-6647
Elizabeth.Lewis@eclewis.com

Online at:

Small Business Fraud in Colorado

by | Oct 26, 2016 | Business News, Misc. Legal Tidbits

Small Business Fraud in Colorado

We hear stories and hope it never happens to us, but when we step back a moment and think about how often small business fraud occurs in Colorado, we quickly realize that we need to be vigilant. As a small business owner, there are a couple of types of fraud you are particularly vulnerable to. I will address a three common types of fraud here, all of which have happened recently in Colorado. I invite you to ask questions about any additional types you’d like me to comment on:

Employee Theft

This is perhaps the most difficult to experience, especially if the employee is a friend, or someone you’ve come to regard as family (or, in the most unfortunate cases, the employee is family). Unfortunately, being regarded as family is a designation deceivers work hard to achieve because of the access it affords them. Staying later, taking on extra duties, and helping out without asking for additional compensation may all be indicators of a bad apple, according to Entrepreneur. It might also just mean you have an employee who is trying to make a good impression, but it is important that you put checks and balances in place in case there is more going on. You can have the employee share responsibilities with someone else – it’s harder to hide deception when there are two people sharing a task. You can also insert an accounting procedure or accountability audit that can be verified by some other means than the employee’s word, for example. Think about how a bank or retailer counts out a cash drawer – there are always two people present and both must sign off on the amount. Come up with a similar means of vetting the work or tasks your most trusted, hardest working employee is engaged in, especially if you are relying exclusively on his or her word to confirm numbers or data being provided to you.

Trusted Advisor Theft

Many of our business advisors have certifications, credentials, and excellent references but those credentials don’t guarantee we will never experience trusted advisor theft. Case in point; a Colorado attorney was recently sentenced to six years in prison for for bilking the company he worked for out of nearly 5 million dollars. A Colorado finance firm owner pocketed fees that were paid to help source loans for his clients. He has been sentenced to prison as well. The prison sentences are reassuring, and hopefully act as a deterrent to would-be thieves, but they don’t erase the stress and financial turmoil these types of thefts cause a business owner. In the instances of employee theft and trusted advisor theft, trust is the door the thief enters through. Jonathan Marks, a partner at Crowe Horwath LLP, provides excellent guidance on observing tell-tale behavior, and reminds us that trust is one side of the coin when deception is the other.

“Fraud is not about obstruction. It is about deception,” Marks said. “In other words, trust is a professional hazard. If you trust someone, you’re at risk of being deceived, so you must verify, verify, verify.”

If your employee or trusted advisor has demonstrated a willingness to deceive, even if it appears the other guy “deserved” it, or if he or she is remarkably arrogant or braggadocios, you may need to do some digging to determine if these behaviors extend to a belief that he or she is “above” the law.

Small Business Credential Theft

By credential theft, I am talking about the credentials you use to access your business banking accounts or business funds, as well as data that could be useful to a thief attempting to pose as you. First and foremost, don’t engage or allow any employee to engage in the Employee Password Worst Practices as outlined in the 2015 Password Workplace Report. The report is worth a read and offers good tips such as requiring complex passwords, and requiring passwords to be changed often. And absolutely make sure that anyone making multiple attempts to access information with the incorrect password is locked out.

If you don’t currently route your company network through a secure collocation data center (or don’t even know what that is) or aren’t sure just what sort of shared access employees have to your computer network (meaning can employee A access the computer of employee B via your network?) you should consider hiring an expert to evaluate your situation. If you don’t know one, I can refer you. If you think you are doing alright with regard to network security, take a moment to read this article with tips on boosting your workplaces network security, just to be certain.

If you need legal help or want to talk over ways of securing your interests against small business fraud, feel free to contact me at the Law Office of E.C. Lewis, P.C., home of your Denver Small Business Lawyer. Phone: 720-258-6647. Email: elizabeth.lewis@eclewis.com.

Contact Us Today

Law Office of E.C. Lewis, P.C.
Your Denver Business Attorney

LICENSED IN COLORADO AND NORTH CAROLINA

501 S. Cherry Street, Suite 1100
Denver, CO 80246
720-258-6647
Elizabeth.Lewis@eclewis.com

Online at:

Small Business Work-Life Balance

by | Apr 15, 2016 | Business News

Small Business Work-Life Balance

Work-life balance is one of those issues we often hear about when it comes to employees, but what about small business owners and entrepreneurs?

Being a small business owner is challenging. It takes a lot of time and energy in order to keep the business going and growing. This can often lead to the assumption that the more time you put into something, namely, your business, then the more you will get out of it. Right? Maybe, maybe not, but you should try and be smart about it.

Consider this, studies show that the belief that multitasking is a powerful productivity tool is a myth. If you are in the middle of a personal, non-business task at home for example, then it might be a good idea to finish that up and then take care of that business matter later. Of course there are always exceptions, emergencies do happen, but do not automatically assume that making your business your number one priority will always lead you to better business results. If you come back to that business task with your full attention, you will likely complete it better and in less time.

Another way to help you obtain a better work-life balance would be to set aside one day out of the week (or maybe even the whole weekend if possible) to not do anything business-related. Think carefully about what day you choose, and make sure it is one that can work for you. For example, if your business gets an important delivery on Saturdays where there are commonly questions or problems with it, then that might not be a good day to choose. This can allow you to decompress, get some greater perspective, and then be ready to jump back into work more inspired and reinvigorated. Burnout is real, and taking steps to overcome it or prevent it now will reward you and your business over the long-term.

A common problem with work-life balance for small business owners is when you operate a home-based business. When you are in this situation, it can be hard to ever feel like you are off-the-clock and actually able to relax in your own home. If you are in this situation, consider limiting all of your business operations, equipment, inventory, et cetera, to one or two rooms in your home. If you have business items strewn across the house, you will likely find yourself thinking about work everywhere you go at home. Additionally, if you do all of your work at home, then it might be a good idea to keep a strict schedule for yourself of working hours. Get in a routine. Together, these tactics should train your brain to focus better on your business by concentrating both when and where you work in a common and predictable way for yourself.

Whatever your small business’ circumstances, it is crucial that you give it 100%, but you cannot do that if you are trying to work 100% of the time. We are all human after all, and we need to eat, sleep, get some rest, and spend some time with our families in order to be at our best on the job. So try and strive for a reasonable work-life balance for yourself, and you will likely be a better person and business owner for it. Lastly, remember not to feel guilty for taking some time out or else you likely will not experience the benefits of rest and balancing your work and the rest of your life. Just give it a try and see if it works for you.

If you need legal advice for your business, or are ready to start a new business of your own, then don’t hesitate to reach out and contact the Law Office of E.C. Lewis, P.C., home of your Denver Business Attorney, Elizabeth Lewis, at 720-258-6647 or email her at elizabeth.lewis@eclewis.com.

Contact Us Today

Law Office of E.C. Lewis, P.C.
Your Denver Business Attorney

LICENSED IN COLORADO AND NORTH CAROLINA

501 S. Cherry Street, Suite 1100
Denver, CO 80246
720-258-6647
Elizabeth.Lewis@eclewis.com

Online at: