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US Ownership and tax

Discussion in 'Buying Overseas Property' started by albert, Sep 23, 2006.

  1. albert

    albert New Member

    Hi folks,

    I am considering further purchases in the US and have a few questions, hoping you can give your two cents worth.

    Is an EIN number also known as a Federal Tax ID number?

    Can anyone recommend a company to setup an LLC for me?

    Can the LLC borrow money to finance deals? If so, can anyone recommend a bank. broker?

    If I lodge a tax return in the US do I need to pay the flat rate of withholding tax of 30% (I've read that expenses cannot be deducted in this instance) or do I pay the rate a normal LLC would and pay the difference to the ATO when I bring the money back to Oz?

    Would it be wise to have my Oz Trust or my individual name as owner of the LLC?

    Heavy stuff, I hope you can help!

    Thanks
     
  2. alexander

    alexander New Member

    Hello Albert,
    I have been advised that my LLC would be taxed at the rate of 15% which CANNOT be used as a tax credit when bringing the money back to Oz. I can otherwise elect to pay the flat rate of 30% withholding tax instead which would be a tax credit and then bring the money back and pay tax at the rate of Marginal Rate% minus 30%.

    Luke, I assume that by completing a W8 form I would be acting with the intention of NOT bringing the money back to Oz, is this correct?
    Cheers
     
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