Florida: Working in Florida

Overview

If there’s a possibility that you or any family members may wish to work in Florida, you must ensure that it will be possible before buying a home. If you don’t qualify to live and work in America by birthright or family relationship, obtaining a work permit may be difficult or impossible. Apart from buying a business in Florida (see Self-employment below), one of the easiest methods of working in America is through an L-1 Intracompany Transfer visa. With an L-1 visa a foreigner owning or employed by a business abroad can form a branch, subsidiary, affiliate or joint venture partner of the same company in Florida, and have himself transferred there to work for the American company. It’s essential to engage an immigration lawyer when applying for an L-1 visa.

Investors who create employment for at least ten full-time American workers (not family members) by investing capital in a new commercial enterprise in America are granted an immigrant (permanent resident) visa. The minimum amount of capital required is usually $1 million, although it depends on the unemployment rate in the proposed area. It may vary from $500,000 in a rural area with high unemployment to $3 million in an urban area with low unemployment.

Immigration Lawyers

It isn’t always essential to employ an immigration lawyer when applying for a visa to work in America, but it’s usually advisable. Many visa applications are rejected because the paperwork is incorrect, e.g. the wrong information has been provided; a form hasn’t been completed correctly; the wrong visa application has been made; or the incorrect approach has been made to the Immigration and Naturalisation Service (INS). The correct method depends on each individual case and the procedure can be complicated (INS rules and regulations also change frequently). There are literally thousands of immigration lawyers in America and abroad. Their fees depend on the complexity of the case and range from $250 for a simple consultation to between $5,000 and $10,000 for a complex application involving a lot of work. Before hiring a lawyer you should ensure that you know exactly how much you must pay and precisely what you will receive for your money. You should engage a lawyer who’s been highly recommended or who has a good reputation, as incompetent and dishonest lawyers aren’t unknown. The most reliable source of information on American lawyers is said to be the Martindale-Hubble list, which includes a rating of each lawyer (see www.lawyers.com). Bear in mind that no lawyer, however much you pay him, can guarantee that your application will be approved.

A cheaper alternative to immigration lawyers are the 400 or so immigration agencies operating throughout the country, some of which charge no fees at all.

Information

The US Department of Labor, Bureau of Labor Statistics, publishes an abundance of information about employment trends and job prospects in America including the Occupational Outlook Handbook, Job Outlook in Brief, Tomorrow’s Jobs: Overview, and Matching Yourself With the World of Work, all of which are available from the Superintendent of Documents, US Government Printing Office, Washington, DC 20402 (202-783-3238). State and local job market and career information is available from state employment security agencies and State Occupational Information Coordinating Committees (SOICCs). There are a number of books written for those planning to work in America including Living and Working in America (written by David Hampshire and published by Survival Books), Finding a Job in the USA (Island Publishing) and How to Get a Job in America by Roger Jones (How To Books).

Anyone interested in working in Florida should note that the economy is largely based on tourism, which for most employees means low wages. A high percentage of the workforce is employed in hotels, restaurants, department stores and small shops – all businesses that pay relatively low salaries or the minimum wage. Even skilled workers are paid significantly less in Florida, where hourly rates are much lower than those paid in northern US states and northern Europe. You can get an idea of local wage rates for various occupations from local Chambers of Commerce or the Florida Department of Labor and Employment Security.

SELF-EMPLOYMENT

One of the most common ways for foreigners to live permanently in Florida is to buy or start a business, which entitles citizens of many countries to obtain a Treaty Investor Visa (see below) valid for up to five years. America welcomes small businessmen (i.e. those employing less than 100 people) who represent over 95 per cent of all Florida businesses. However, before investing in a business in Florida it’s essential to obtain expert professional and legal advice. An application for a visa should be made by an experienced immigration lawyer or a business broker, as well prepared applications are usually processed quickly and successfully. Visas can be approved and issued in as little as two weeks if the paperwork is in order, although you should allow one to two months.

The purchase of a business must be conditional on obtaining visas, licences, permits, loans or any other necessary funding, and anything else that’s vital to the successful operation of a business. You aren’t required to make an investment before making an application for an E-2 visa, but the necessary funds must be available. This allows you to make an offer to purchase a business which is conditional upon you being granted an E-2 visa. Note that if you require financing, it must meet with the rules and is usually limited to a maximum of 25 per cent of the value of a business costing around $100,000. While it’s easier to buy an existing business (which gives you an immediate cash flow) than start a new one, you must thoroughly investigate the financial status, turnover and value of a business (always obtain an independent valuation). It’s important to engage an accountant and lawyer at the earliest opportunity. Fees can be substantial, so shop around and obtain several quotes.

Licensed Business Brokers

Many people use the services of a licensed business broker when buying a business in Florida. It’s important to confirm that a broker is licensed and not to take his word for it (don’t believe a piece of paper, but check with the authorities)! It’s advisable to use a buyer’s broker who represents only you (the buyer) and not the seller, thus eliminating potential conflicts of interest. It’s important to note that most real estate brokers offer businesses for sale through a multiple listing service and therefore primarily represent the seller and not the buyer. A business buyer’s broker won’t only find you a suitable business in a particular area, but will negotiate the price on your behalf and may arrange for an E-2 visa. Business brokers have a huge number and range of businesses for sale, including everything from a sandwich bar to a restaurant, a Laundromat to a motel, plus a variety of franchise operations.

Don’t pay a broker’s fees in advance and deal only with a company that operates on a success basis, where payment isn’t due until a business is purchased and the visa approved. Compare brokers’ commissions, which usually vary depending on the price of the business. Note that it isn’t normal practice in Florida for a seller to divulge details of his accounts (turnover, profit, etc.) until a prospective buyer has entered into a preliminary or main contract to purchase the business, and a good faith deposit has been placed in an escrow account. You should also engage a lawyer who’s acting solely for you and not for any other parties involved in a transaction (and who isn’t receiving commissions from anyone involved). Take care as there are crooks around who prey on greenhorn foreigners!

Choosing a Business

The key to buying or operating a successful business in Florida is research, research and more research. Bear in mind that choosing the location for a business is even more important than the location for a home. Always thoroughly investigate an existing or proposed business (including the location, catchment area, competition and history) before investing a dime. Check the trading and profit accounts and confirm them with the local tax office (they may be false!) by checking sales tax returns for the last two or three years. It’s also advisable to have a certified public accountant (CPA) carry out an independent audit as some businesses use dual accounting. Some sellers deliberately try to sell an ailing business to an inexperienced and unsuspecting foreigner. A professional crook may offer owner financing knowing that you will be unable to maintain the payments and that they will be able to foreclose later and regain control of the business for nothing. Always check how long a business has been on the market. If it’s longer than six months it may be that it’s overpriced and isn’t a good investment.

Generally speaking it isn’t advisable to run a business in a field in which you have no experience, although obviously this isn’t always practical (and some businesses require little specialist education, knowledge or training). When experience or training is necessary, it’s often wise to work for someone else in the same line of business to gain experience, rather than jump in at the deep end. Note that assistance, including hands-on help from the seller, could be made part of a purchase contract. As any expert will tell you, America isn’t a country for amateur entrepreneurs, particularly amateurs who don’t do their homework and are unfamiliar with Americans and the American way of doing business.

Note that certain businesses, e.g. a hair and beauty salon, must be licensed, which requires an owner to go to school and pass exams in Florida. It may, however, be possible to operate a business under the existing owner’s licence until you have your own, in which case there should be a clause in the contract. Note, however, that it’s a federal offence to operate without a licence, e.g. you need a licence to sell cigarettes, alcohol, gasoline, food and provide accommodation. It’s common practice (and invaluable) for the previous owner to stay on for a period (e.g. 30 days) after a sale to show you the ropes. If applicable and you can afford it, it will also pay you to hire any existing staff. It isn’t necessary to employ US nationals if a business will initially support the buyer only, although it’s a big plus point with the authorities when applying for a visa. Employees can be full-time, part-time or contract staff. A number of free commercial real estate/business guides are published in Florida, including the monthly Harmon Commercial Real Estate (consult www.harmonhomes.com for a free copy – there’s a fee for shipping and handling).

Local Information

There are many local, state and federal government agencies and departments providing information and advice about starting and running a business. The best places to start are local Chambers of Commerce, which are a mine of information about every aspect of business and relocation to a particular town or area (many produce relocation and business information packages). The Florida Chamber of Commerce (877-521-1200, fryll@flchamber.com) also publishes a wealth of information, including a useful free Florida Business & Newcomers guide. Florida Trend business magazine is essential reading for business people and it also publishes a Newcomer’s Guide to Florida Business.

The US Small Business Administration (SBA) has offices in most counties (many located in Chambers of Commerce) and provides a wide variety of free business counselling regarding finance, accounting, record keeping, business start-up and management, taxes, marketing, sales promotion, advertising, retailing, manufacturing, and sales and service businesses. The SBA has two offices in Florida, one serving southern Florida (100 S. Biscayne Blvd., 7th Floor, Miami, FL 33131, 305-536-5521, www/sba.gov/fl/south) and the other northern Florida (7825 Baymeadows Way, Suite 100-B, Jacksonville, FL 32256-7504, 904-443-1900, www.sba.gov/fl/north). The Small Business Development Center has programmes for budding entrepreneurs at most state universities and community colleges in Florida. If you’re thinking of starting a business or becoming self-employed you may also find it beneficial to join the National Association of Self-employed (NASE), PO Box 612067, DFW Airport, TX 75261-2067 (1-800-232-NASE, www. nase.org). NASE publish a wealth of information for small businesses (including the Small Business Resource Guide) and can save you considerable time, trouble and money through a multitude of services and discounts.

General Information

Most international accountants have offices throughout America and in many other countries and are an invaluable source of information (in English and other languages) on subjects such as forming a company, company law, taxation and social security. Many publish free booklets concerning doing business in America including Doing Business in the United States available from Ernst & Young, Beckett House, 1 Lambeth Palace Road, London SE1 7EU, UK (020-7951-2000). AT&T publishes the AT and T Business Guide to the USA, available from the American Chambers of Commerce, 75 Brook Street, London W1Y 2EB, UK (020-7467-7400).

Bottom Line

Whatever people may tell you, starting your own business isn’t easy (otherwise most of us would be doing it) and it requires a lot of hard work (self-employed people generally work much longer hours than employees); a sizeable investment and sufficient operating funds (most businesses fail because of lack of capital); good organisation, e.g. bookkeeping and planning; excellent customer relations (in America the customer is always right, even when he’s wrong!); and a measure of luck (although generally the harder you work, the more ‘luck’ you will have). Don’t be seduced by the apparent laid-back way of life in Florida – if you want to be a success in business you cannot play at it. Bear in mind that almost two out of three new businesses fail within three to five years and that the self-employed must provide their own health and pension plans and don’t qualify for unemployment insurance and workers’ compensation.

Treaty Investor Visas

One of the main attractions of buying or starting a business in America is that it provides one of the easiest and quickest ways to obtain a non-immigrant visa, namely an E-2 Treaty Investors Visa. E-2 visas are available only to citizens of countries with which America has a trade investment treaty including Albania, Argentina, Australia, Austria, Bangladesh, Belgium, Bosnia, Bulgaria, Cameroon, Canada, Colombia, Congo, Costa Rica, Croatia, Czech Republic, Ecuador, Egypt, Ethiopia, Finland, France, Germany, Grenada, Honduras, Iran, Ireland, Italy, Japan, Kazakhstan, Korea (South), Kyrgyzstan, Latvia, Liberia, Luxembourg, Macedonia, Mexico, Moldova, Mongolia, Morocco, Netherlands, Norway, Oman, Pakistan, Panama, Paraguay, Philippines, Poland, Romania, Russia, Senegal, Slovakia, Slovenia, Spain, Sri Lanka, Suriname, Sweden, Switzerland, Taiwan, Thailand, Togo, Tunisia, Turkey, Uzbekistan, the United Kingdom and Zaire.

At least 50 per cent of the owners of a treaty business must be citizens of a single trade or investor country. An E-2 visa holder must be a principal owner who controls at least 50 per cent of the company or a key employee (with the same nationality as the principal owner) who’s a manager, executive or a person with specialised knowledge essential to the business. E-2 visas are issued subject to certain requirements, but there’s no restriction on the number issued each year. It isn’t always necessary to use an immigration lawyer to make an E-2 visa application, although it’s usually advisable. Always obtain a quotation in writing and shop around a number of immigration lawyers (check their credentials and references), as fees can run into thousands of dollars depending on the amount of work involved. Note that the purchase of a business should always be contingent on obtaining an E-2 visa.

An E-2 visa is granted to the principal owner or a key employee of a company that has invested a ‘substantial amount of money’ in a business enterprise in America. The actual amount depends on the type of business. There’s no minimum but most investments are over $100,000, and it’s difficult to obtain an E-2 visa for an investment of under $80,000. Also, there are limitations on the percentage of financing permitted, which depends on the value of the business. A business can be jointly owned with a spouse or partner (who can be an American citizen).

More important than the amount of money invested is whether the business is likely to be profitable and whether it will employ Americans. The business must generate significantly more income than just to provide a living to the investor and his family. If you’re establishing a new business, you must make appropriate expenditure before your visa application will be considered, so it’s generally easier to obtain an E-2 visa for an existing business than a new business. Anyone planning to buy a business should enquire about the likelihood of obtaining an E-2 visa before signing a purchase contract and should make the contract contingent on obtaining a visa.

An E-2 visa doesn’t have a time limit but continues to be valid for residence as long as the holder maintains his status with the enterprise or business. Note, however, that an E-2 visa is valid only as long as the business continues to be viably operated. The spouse and children under 21 of an E-2 visa holder also receive E visas, but may not work in America unless they receive an E visa as a co-investor or co-trader. Children can attend college or university in America until the age of 21, when they must qualify for a visa in their own right. No educational standards, job offer or experience are required, and an E-2 visa permits multiple entries and a potentially indefinite stay in America. For further information contact Business Visa Specialists (www.immigrationvisas.com)

© Survival Books Limited 2004

“Buying a Home in Florida” 2nd Edition, David Hampshire.

Reproduced with the permission of Survival Books Limited.

Further information on this topic can be found in “Buying a Home in Florida” 2nd edition, by David Hampshire.

For extensive information about buying a property in Florida, you can purchase this book at www.survivalbooks.net

All circumstances vary. BuyAssociation provides general advice for guidance purposes only. It is strongly recommended that you seek professional advice before making any purchase.