Susie
03-14-2006, 01:21 PM
Hi
This was sent to me via e-mail from a new member and contains good advise
L is for learner: You don’t know what you don’t know
Having taken the L visa route to setting up a business in Florida one British couple allege that unscrupulous practices by the realtor and attorney concerned has resulted in them losing the thousands of pounds they invested. Still awaiting legal recourse, here the couple pass on hard won advice to those thinking of buying a business in the US – especially when being able to operate the business is dependent upon obtaining a visa.
Choose your associates wisely
Do not accept the services of the first realtor/broker/attorney you come across – visit several both British and American and see how the advice differs. It may sound like a waste of time and hard work when you are on a two-week holiday but you will be surprised by the benefits of your efforts. If someone promises you the eternal pot of gold, walk out of the office. Every Brit I know operating a business in Florida has had to work extremely hard to survive.
If a realtor/broker recommends an attorney for your visa application, don’t necessarily take their advice. It is important to find you own attorney who specialises in visas. Remember attorneys are answerable to the law society. Alternatively if using a visa consultant, make enquiries as to whether they are answerable to any governing body before taking on their services.
If a Realtor/Broker gives visa advice - ignore it, they are not in a professional position to offer such advice.
If you employ the services of a realtor/broker, it is of paramount importance that you are given an Agency Disclosure Form, this form is mandatory and if you are not given this form the realtor is breaking the law. If you make any complaints to the real estate commission you will be asked to produce this form. The form outlines how the realtor will represent you. Unless you have sat a realtor’s course, it is a minefield to get your head around the different ways a realtor can represent you – particularly if they are acting for the seller as well as yourself. My advice is - especially if the realtor is acting for the seller as well as yourself - be very diligent at this particular point in the proceedings. Do not under any circumstances proceed with your case until you have this form duly signed and in your possession and you fully understand how the broker/realtor will represent you and act in your best interest.
Under the Realtors Code of Ethics they are not allowed to act for him/herself or a member of their family when selling a property or business unless an addendum is disclosed.
Thinking that the US system worked the same as Britain’s we asked our realtor if the same attorney acting for our visa application would also act in the purchase of the business. Unbeknown to us in the US, unlike the English system, the Realtor would prepare a contract not the attorney (solicitor). The realtor/brokers are often aware of how the English system works and you can naively fall into the trap of thinking that you are protected by laws and regulations – you are not. The US appears to operate a ‘buyer beware’ system – which seems crazy. Surely, when you employ the services of a realtor/broker they have a fiduciary responsibility to their clients? We lost thousands of pounds/dollars but the governing body for the realtors cannot issue criminal proceedings only administrative penalties i.e. fine the realtor or at worse revoke the licence but they can still maintain an operational business with other brokers working for their business.
L doesn’t have to stand for learner
We chose the L route for our particular visa and we were informed that to obtain an visa you have to invest $100,000 in a US company. This is not the case: you do not have to invest a cent! The L visa is for an intra-company transfer and whilst you can purchase a business under this visa you can also transfer your existing company in the UK to the US provided your company in England is still in operation. Moreover, the company in the US does not have to be in the same line of work as the UK company.
If you are thinking of taking the L route, talk to attorney(s) or the US Embassy in London about firstly obtaining the B1 visa which will allow you up to 6 months in the US to look for premises to operate your business, obtain contracts etc. You cannot physically work during this 6 months period but it does give you time to familiarise yourself with the area, talk to the locals, and fellow Brits, and you will have a better footing to start your business if and when you do move out there on a permanent basis.
Signing, appraising and checking
You will almost certainly be asked to sign an agreement for services and fees by the attorney. This retainer covers the attorney in the event of your visa being refused; most attorneys both here and in the USA will ask that this form be signed. This is not a problem but do not sign this form if the attorney has not had sight of your paperwork – after all, how does the attorney know whether or not you will qualify for a visa without seeing vital qualifying accounts, company information etc? He/she will only have your verbal clarification at this stage. When you sign this form you exonerate the attorney from responsibility should your visa not be granted, so ensure he has cross checked the viability for your visa. Also do not complete any paperwork/forms he/she may send you, no matter how innocent the questions may look. Insist that he/she go over in fine detail the content of the paperwork/forms – always remember we are two countries separated by a language and what means one thing in the UK has a totally different meaning in the US! They are being paid for this service – use them.
When purchasing a business – you must be allowed to see at least 3 years accounts and tax returns for the business you are purchasing – do not accept under any circumstances any excuses e.g. the information is with the accountant for end of year review. Show the accounts to a certified public accountant known as a (CPA) – preferably one who is familiar with the requirements for US visas.
Has the business been appraised? You must ask to see the appraisal for the business. Get it checked over independently (try to find a business appraiser in Florida, although there are not that many around). If the appraisal has been carried out by the realtor/broker, this is illegal they are only allowed to carry out comparative market analysis. If in doubt, keep making enquiries and obtain your own appraisal – it is very important.
Look over the contract extremely carefully. Is there a provision in the contract stating that the purchase of the business is dependent on visa status? In other words, if you don’t get the visa you do not have to purchase the business. If this clause is not inserted the realtor is not acting in your interest, this is fraud and misrepresentation. The reason this clause is very often omitted is because the seller could lose a potential sale and the realtor the commission should you not receive your visa.
Do not sign closing papers for your business unless you have been granted your visa and it is stamped by the embassy in London, do not listen to any excuse, and there are some brilliant ones, to make you believe you are carrying out the correct procedure and you are covered by visa regulations because your paperwork is in the system, YOU ARE NOT. Don’t fall into the trap and believe that because the realtor has been practising for years, had they been acting fraudulently the system would have caught up with them way before now, believe me it is not the case.
When signing a contract, make sure that any money is put into an escrow account until visa status is granted – this applies to both E and L visas.
A vital point to remember is that you do not need a visa to purchase a business in the US but you have to have the visa to operate the business yourself. In our particular case we had to return to England with no visa and a business in the US, which we cannot operate as we were not willing to stay and work out there without the necessary visa being issued.
What many Brits are not aware of is that you can perform background checks on your proposed business purchase. Go online to www.sunbiz.org. Click on the site index and under ‘online searches’ and ‘document images’ you will see fictitious names of corporations. Experiment with these searches and you will see who owns the business and whether the business is active or not, or how long the business has been active. If the business is listed as ‘inactive’ – and it will be listed on these searches – you are not purchasing a business, only the assets. Whilst this is legal, how can you be granted an E visa by purchasing an inactive company! If your company is not listed under the fictitious names be wary, - a fictitious name is any name other than an individual’s legal name, registration of that name is required if it is used in business in order to inform the public of who is actually conducting the business. If your proposed business is not listed – find out why.
And finally..
Be extremely wary and if you have any doubts whatsoever, don’t commit! Get another opinion – it will be well worth it! It has cost us thousands of dollars to gain the experience necessary to write this article – with little hope any recompense. I have heard many horror stories from other victims – who are afraid to report their experiences. Don’t be another statistic.
This was sent to me via e-mail from a new member and contains good advise
L is for learner: You don’t know what you don’t know
Having taken the L visa route to setting up a business in Florida one British couple allege that unscrupulous practices by the realtor and attorney concerned has resulted in them losing the thousands of pounds they invested. Still awaiting legal recourse, here the couple pass on hard won advice to those thinking of buying a business in the US – especially when being able to operate the business is dependent upon obtaining a visa.
Choose your associates wisely
Do not accept the services of the first realtor/broker/attorney you come across – visit several both British and American and see how the advice differs. It may sound like a waste of time and hard work when you are on a two-week holiday but you will be surprised by the benefits of your efforts. If someone promises you the eternal pot of gold, walk out of the office. Every Brit I know operating a business in Florida has had to work extremely hard to survive.
If a realtor/broker recommends an attorney for your visa application, don’t necessarily take their advice. It is important to find you own attorney who specialises in visas. Remember attorneys are answerable to the law society. Alternatively if using a visa consultant, make enquiries as to whether they are answerable to any governing body before taking on their services.
If a Realtor/Broker gives visa advice - ignore it, they are not in a professional position to offer such advice.
If you employ the services of a realtor/broker, it is of paramount importance that you are given an Agency Disclosure Form, this form is mandatory and if you are not given this form the realtor is breaking the law. If you make any complaints to the real estate commission you will be asked to produce this form. The form outlines how the realtor will represent you. Unless you have sat a realtor’s course, it is a minefield to get your head around the different ways a realtor can represent you – particularly if they are acting for the seller as well as yourself. My advice is - especially if the realtor is acting for the seller as well as yourself - be very diligent at this particular point in the proceedings. Do not under any circumstances proceed with your case until you have this form duly signed and in your possession and you fully understand how the broker/realtor will represent you and act in your best interest.
Under the Realtors Code of Ethics they are not allowed to act for him/herself or a member of their family when selling a property or business unless an addendum is disclosed.
Thinking that the US system worked the same as Britain’s we asked our realtor if the same attorney acting for our visa application would also act in the purchase of the business. Unbeknown to us in the US, unlike the English system, the Realtor would prepare a contract not the attorney (solicitor). The realtor/brokers are often aware of how the English system works and you can naively fall into the trap of thinking that you are protected by laws and regulations – you are not. The US appears to operate a ‘buyer beware’ system – which seems crazy. Surely, when you employ the services of a realtor/broker they have a fiduciary responsibility to their clients? We lost thousands of pounds/dollars but the governing body for the realtors cannot issue criminal proceedings only administrative penalties i.e. fine the realtor or at worse revoke the licence but they can still maintain an operational business with other brokers working for their business.
L doesn’t have to stand for learner
We chose the L route for our particular visa and we were informed that to obtain an visa you have to invest $100,000 in a US company. This is not the case: you do not have to invest a cent! The L visa is for an intra-company transfer and whilst you can purchase a business under this visa you can also transfer your existing company in the UK to the US provided your company in England is still in operation. Moreover, the company in the US does not have to be in the same line of work as the UK company.
If you are thinking of taking the L route, talk to attorney(s) or the US Embassy in London about firstly obtaining the B1 visa which will allow you up to 6 months in the US to look for premises to operate your business, obtain contracts etc. You cannot physically work during this 6 months period but it does give you time to familiarise yourself with the area, talk to the locals, and fellow Brits, and you will have a better footing to start your business if and when you do move out there on a permanent basis.
Signing, appraising and checking
You will almost certainly be asked to sign an agreement for services and fees by the attorney. This retainer covers the attorney in the event of your visa being refused; most attorneys both here and in the USA will ask that this form be signed. This is not a problem but do not sign this form if the attorney has not had sight of your paperwork – after all, how does the attorney know whether or not you will qualify for a visa without seeing vital qualifying accounts, company information etc? He/she will only have your verbal clarification at this stage. When you sign this form you exonerate the attorney from responsibility should your visa not be granted, so ensure he has cross checked the viability for your visa. Also do not complete any paperwork/forms he/she may send you, no matter how innocent the questions may look. Insist that he/she go over in fine detail the content of the paperwork/forms – always remember we are two countries separated by a language and what means one thing in the UK has a totally different meaning in the US! They are being paid for this service – use them.
When purchasing a business – you must be allowed to see at least 3 years accounts and tax returns for the business you are purchasing – do not accept under any circumstances any excuses e.g. the information is with the accountant for end of year review. Show the accounts to a certified public accountant known as a (CPA) – preferably one who is familiar with the requirements for US visas.
Has the business been appraised? You must ask to see the appraisal for the business. Get it checked over independently (try to find a business appraiser in Florida, although there are not that many around). If the appraisal has been carried out by the realtor/broker, this is illegal they are only allowed to carry out comparative market analysis. If in doubt, keep making enquiries and obtain your own appraisal – it is very important.
Look over the contract extremely carefully. Is there a provision in the contract stating that the purchase of the business is dependent on visa status? In other words, if you don’t get the visa you do not have to purchase the business. If this clause is not inserted the realtor is not acting in your interest, this is fraud and misrepresentation. The reason this clause is very often omitted is because the seller could lose a potential sale and the realtor the commission should you not receive your visa.
Do not sign closing papers for your business unless you have been granted your visa and it is stamped by the embassy in London, do not listen to any excuse, and there are some brilliant ones, to make you believe you are carrying out the correct procedure and you are covered by visa regulations because your paperwork is in the system, YOU ARE NOT. Don’t fall into the trap and believe that because the realtor has been practising for years, had they been acting fraudulently the system would have caught up with them way before now, believe me it is not the case.
When signing a contract, make sure that any money is put into an escrow account until visa status is granted – this applies to both E and L visas.
A vital point to remember is that you do not need a visa to purchase a business in the US but you have to have the visa to operate the business yourself. In our particular case we had to return to England with no visa and a business in the US, which we cannot operate as we were not willing to stay and work out there without the necessary visa being issued.
What many Brits are not aware of is that you can perform background checks on your proposed business purchase. Go online to www.sunbiz.org. Click on the site index and under ‘online searches’ and ‘document images’ you will see fictitious names of corporations. Experiment with these searches and you will see who owns the business and whether the business is active or not, or how long the business has been active. If the business is listed as ‘inactive’ – and it will be listed on these searches – you are not purchasing a business, only the assets. Whilst this is legal, how can you be granted an E visa by purchasing an inactive company! If your company is not listed under the fictitious names be wary, - a fictitious name is any name other than an individual’s legal name, registration of that name is required if it is used in business in order to inform the public of who is actually conducting the business. If your proposed business is not listed – find out why.
And finally..
Be extremely wary and if you have any doubts whatsoever, don’t commit! Get another opinion – it will be well worth it! It has cost us thousands of dollars to gain the experience necessary to write this article – with little hope any recompense. I have heard many horror stories from other victims – who are afraid to report their experiences. Don’t be another statistic.