It might be easier than ever to use the International Entrepreneur Rule
Exciting news for startup founders who are looking to enter the US! The International Entrepreneur Rule (IER) might now be easier than ever to use, after recent updates by U.S. Citizen and Immigration Services (USCIS) (more on that below).
To help startups take advantage of this potentially improved process, we've arranged for special IER perks worth up to $3,000:
- For a limited time, Mercury** is offering $2,000 in cash to Clerky startups who deposit the IER fundraising requirement amount ($264,147) within 90 days*
- Ellis Legal, an immigration law firm, is offering Clerky startups $1,000 off one IER application
- SW Law Group, an immigration law firm, is offering Clerky startups 10% off one IER application
To get the Mercury perk, make sure to apply for a Mercury account from your formation checklist on Clerky. To get the perks for Ellis Legal or SW Law Group, go to the Perks page for your startup's team on Clerky and then look for the Immigration category.
On top of these perks, Clerky is also the easiest and fastest way to meet the IER requirements:
- Incorporate Delaware corporation
- Issue stock to founders
- Applicants have to own at least 10% of the startup
- We're the only startup incorporation service to help you get the complete set of attorney-recommended 83(b) election evidence 😎 (requires paid add-on).
- Open Mercury account without having to wait for an EIN from the IRS
- Mercury can help you open an account even while you're waiting for your EIN, so you can get started closing investors as soon as possible. Just make sure to start your Mercury application from your formation checklist on Clerky to enable this.
- Issue safe or convertible notes
- Make sure to issue at least the amount required for the IER. As of July 2024, the threshold is $264,147.
* Earn a cash bonus of $1,000 by depositing at least $20,000 within 90 days of account opening and an additional cash bonus of $1,000 by depositing at least $264,147 within 90 days of account opening. This offer can't be combined with any other offers.
** Mercury is a financial technology company, not a bank. Banking services provided by Choice Financial Group and Evolve Bank & Trust, Members FDIC.
What is the IER?
The IER allows USCIS to grant startup founders parole to enter the US. Specifically, the IER makes it possible for most non-US startup founders to enter the US as long as they've raised more than $264,147 (as of July 2024) from investors meeting certain criteria. You have to own at least 10% of your startup, and up to three co-founders from the same startup can apply. You can stay in the US for 2.5 years (possibly up to 5) and your spouses can even work in the US too.
The IER has been available since 2021 but has not been popular due in part to very long processing times and unclear requirements. USCIS might be fixing that though. Late last week, they announced that they've worked through the backlog of applications and are actively encouraging people to apply. They also published new FAQs that make it easier for founders to apply by giving more clarity around the process.
We can't be certain, but many are speculating that the announcement and changes signal that USCIS wants to get more startup founders into the US and will be processing applications faster.
Things to consider
The IER could become a great option for non-US startup founders and we're excited for that possibility, but it's important to note:
- Parole isn't the same thing as a visa and there are some practical differences. You should consult an immigration attorney to determine what's best for your specific circumstances.
- Many immigration attorneys recommend thinking of the IER as a backup to a visa. If you're applying for a visa to be able to work on your startup in the US, you can think of the IER as a backup that you might want to apply for at the same time. Or, the IER might be your only option if you're not eligible to apply for a visa.
- The USCIS has specific requirements for the IER. For example, there are requirements that most well-known startup investors will meet, but that not all startup investors will meet. Please don't take any actions in anticipation of using the IER without first consulting an immigration attorney to make sure you take all the requirements into account.
- The funding threshold ($264,147 as of the date of this post) is adjusted for inflation every three years and is next due to be adjusted in October 2024. Based on recent inflation data, we expect the funding threshold to increase when it's adjusted.
- When a new president is elected this November, the new administration may have different views on the IER. While the USCIS may be signaling that they're eager to grant more parole now, this may change when a new administration takes over in January.
- Some countries may have an exit tax for startups that move to another country (like the US). If you're in such a country and your startup raises money from investors, your startup could be considered valuable and trigger an exit tax. You should consult a tax advisor in your country if you have questions about this.
Finally, please keep in mind that it's too soon to know what startups will actually experience with the IER. Nevertheless, the recent updates by the USCIS are promising and might make the IER worth trying in more scenarios. Here at Clerky, we're excited for the prospect of the IER living up to its potential and are excited to help startups who want to try it out.
Good luck!