Using LLCs for property in US

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scuddy

New Member
Hi,

I've a house which has been rented out in GA, I am in the UK, I've seen it mentioned I should form company to pay the rent into (rather than just have it sent straight back to me in the UK).

Has anyone done this, is it worth it, what are the issues to be aware of? Does it make me liable to federal taxes etc?

Tks

Paul
 
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scuddy

New Member
Just to say the llc gives me the ability to have a bank account in the US as well.
 
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stdownes

New Member
Hi Scuddy,

I guess it comes down to your own personal circumstances, and how many properties you own etc. You should take advice from this by a US accountant familiar with the state of Georgia. One advantage of having an LLC is that if the property is held within that structure your liabilities are limited to that of the company and not your personally.

I hope that helps.
 
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kkruse2

New Member
Hi Scuddy, you really should have your house in an LLC (Limited Liability Company) Just so that your protected otherwise if you get sued by a tenant they can go after all your assets.
You also should have what's called a resident agent to administer the Company. Plus trying to open a bank account outside of the country is really hard because of the anti terrorism laws in place now. Even if you do have an LLC.
And yes you will have to pay tax on the property.
I have 5 properties in the States, and have been doing this for 2 years up in Michigan, if you need any advice get in touch on this forum.
I have a really good accountant in the US, (I'm in Australia) I can always pass her name onto you if you need help, which it sounds like you do.
Cheers
Karen
 
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Props1210

New Member
Hi Scuddy

How are you getting on with your property? Is the rentals easy to come by?
 
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randyvanarsdale

New Member
Hi Karen,

I am thinking about investing in buy2let in US as well. What kind of rental yields are you getting and what are you paying in taxes on the income? In other words, what is your real net net at the end?...

Thanks=]
r
 
Drew Drew

Drew Drew

New Member
You don't NEED to put your properties in an LLC, but it may be a smart move. Given you live outside the United States, it's highly unlikely a US lawsuit would even try to collect on you.

That means, all you have at risk are your assets in the US.

A challenge with LLC's is that if you don't follow the legal requirements for them (annual board meetings, etc.),their legal protection can be "pierced" by a lawsuit.

You want to speak with a Certified Public Accountant (CPA) AND a tax attorney AND an asset protection attorney before deciding what to do. CPA's are only concerned with tax implications, while attorneys focus on legal implications - and they often contradict each other!

You need to get all the facts so you can make the best decision for you.

Also, if anyone is looking to invest in Metro Detroit or needs property management, please Google us:)
 
Drew Drew

Drew Drew

New Member
LLC's are not all they seem to be. If you live outside the US, it's highly unlikely any US lawsuit would go after your personal assets not in the US.

Also, don't rely on an accountant or an attorney for all your advice - you need to weigh advice from BOTH as the two professions (tax and law) are often at odds and contradict each other.
 
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BradKing

New Member
Hi Karen, I'm looking at buying my first investment property in Kissimmee, FL. I've been doing the reserch online here in Melbourne for past few days now, it is so time consuming. What does 'HOA' and 'short sale' mean? Have you got any good guidence to help me with buying my first property in the US please.
 
Drew Drew

Drew Drew

New Member
Brad:

Short Sale - means property owner is trying to sell their home for less than what they owe on it. They need lender approval to do this, which can take months.

HOA - Home Owner's Association. You should get financials on these as several are facing bankruptcy and all they can do is raise association fees on remaining owners. This will obviously affect your cashflow.
 
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