One of the key aspects when investing in real estate in the United States – especially if you are a foreigner – is how to structure your investment legally. One of the most recommended and flexible ways is through an LLC (Limited Liability Company). This figure offers multiple benefits in terms of taxes, legal protection and succession planning.
What is an LLC?
The LLC is a legal entity recognized in all U.S. states. It combines the advantages of a public limited company (liability protection) with the tax flexibility of a partnership. It is an ideal structure for both individuals and groups who want to invest together.
Benefits for foreign investors:
Asset protection: your personal assets (car, savings, other properties) are legally separated from the invested property. This means that if a lawsuit or conflict arises related to the property, your personal assets are not compromised.
Tax advantages: in many cases, the LLC allows you to avoid double taxation, that is, pay taxes both in your country of origin and in the US. In addition, you can deduct operational and administrative expenses.
Greater privacy: unlike buying in personal name, with an LLC you can keep your name out of public records.
Ease of succession: being a legal entity, transferring property to family members or partners is easier and more orderly, especially in cases of death of the owner.
How the process works:
Creating an LLC is a relatively quick process. The state (Florida in this case) is selected, a name for the entity is chosen, a registered agent is designated, and the act of incorporation is presented. An EIN (tax identification number) is then obtained and a business bank account is opened. At Allianze Group we work with legal allies who can accompany you throughout this process.
Is it mandatory to use an LLC?
It is not mandatory, but it is highly recommended, especially when the investment exceeds $100,000 USD or you plan to have several properties. It is also useful if you want to apply for immigration programs such as the E-2 visa, since the use of a commercial entity can facilitate the presentation of your case.
Conclusion:
Using an LLC as an investment vehicle gives you control, security and tax advantages. At Allianze Group we guide you step by step so that you can make intelligent decisions, with legal and strategic support.
