Question:

I am business owner in the US wanting to expand my business with EB-5 capital. I have a medical supply company that sells a wide variety of supplies and equipment. However, I have an investor that wants to create a new company that will specialize in selling massage equipment and supplies, which my company currently does. I want to eliminate the massage supplies and equipment division in my company so my friend can create his own business for EB5. We hope that creating a new business for these specific products will generate more revenue and profits. The two companies will be separate but affiliated with one another. When eliminating the massage supplies division in my company, can my friend use my fired employees from that department and hire them for his company and it be counted as part of the job creation requirement? These employees are currently under as 1099 and the new company will bring them on as W-2's. Thanks, your advice is greatly appreciated.