What is the legal setup to establish a US search fund by internationals?

searcher profile

April 24, 2019

by a searcher from Northwestern University - Kellogg School of Management in Evanston, IL, USA

2
7
188
Replies
7
commentor profile
Reply by a searcher
from SKEMA Business School in Dubai - United Arab Emirates
I am in similar situation as I am trying to navigate the immigration challenges to create my search fund. For a foreigner to establish a search fund in the US, you need a VISA. You have basically 2 options: H1B and E2. The former has to be requested by the employer (the fund) and is a cumbersome process of allotment. The next selection process starts in April 2021 for an allotment in September###-###-#### The later is more straight forward but requires that your home country has a treaty with the US. In this option, you invest a substantial amount to a business in the US (the fund). There is no guideline per say on the amount to be invested. Some say 50k is enough others are referring to 200k. The main drawback of the E2 route is that you need to own 50%+ of the fund. So it does not really work with a traditional model and is a better fit for a self-funded. Either way as mentioned by Michael, the structure will be an LLC. Hope it helps, DM me if you want more information or contact details of immigration lawyers who worked with foreign searchers in the past.
commentor profile
Reply by an intermediary
in Austin, TX, USA
Of course it is. A search fund is a corporate entity, usually a C Corp or LLC. Anyone can start either one. A foreigner may not form an S Corp. The tricky part is legal and tax compliance. It would be best to consult an attorney and tax professional first.
commentor profile
+5 more replies.
Join the discussion