For many years, investors have found it attractive to purchase real estate in the United States. Miami and South Florida has become the center of attention for many of these investors. The warm climate, the beaches, and the strong latin-american community are some of the reasons investors choose to invest in Miami.
The US Real Estate Market –
The US is a great place to invest in real estate, but you should first learn the tricks and the trade of US Investment Strategies. We have been helping investors in the US for over 40 years. We will educate you on how to buy, how taxes work, what happens when you sell a property, and other investmet vehicles. Many investors find it is best to purchase their real estate investments using an LLC or a Corporation.
In the U.S., “Incorporating a company” means “form a company.” There are 3 main benefits to forming a company in the U.S. for your Investments.
1. Personal Asset Protection
The major reason why individuals choose to pursue a business through a company is to achieve protection over their personal assets, such as your home, family savings, other companies, and others.
In case the business fails, these personal assets can not be touched. They will, therefore, be protected from creditors. In other words, creditors can not go knock on the doors of the shareholders. Most investors of real estate choose to have each of their properties under a different company for this reason. If there is a problem in a property owned by a company that results in a lawsuit, only the assets of that company are at risk. Any of your assets under a different company are not at risk.
This limited liability of these corporations does not apply to so-called “Sole proprietorship”, sole proprietorships, or “partnership” – actually – where company owners respond with their own property for the debts of the company.
Create Company In Florida – $499
Create Company in Delaware – $799
2. Tax Advantages
While corporations or LLCs may establish earnings deductions to reduce the payment of this tax, the other informal structures such as sole proprietorship or partnership does not enjoy these benefits. For example, medical expenses, life insurance or disability, are fully deductible for corporations.
On the other hand, a corporation may own shares of another corporation, and receive 80% of tax-free dividends.
In some cases, using a company for your Investments is a way to stay anonymous. There are many reasons for an investor to remain anonymous. Some states in the US offer a higher level of anonymity. Delaware is a state known to deliver a higher level of anonymity.
In case of death of one of its owners, the company can continue to operate as the direction is independent of the shareholders. The property is easily transferable (which does not happen often with the LLC, where all members must agree).
Business is much easier having a LLC. Banks and businesses will be more willing to do business than they would face if a natural person.
If you choose to do business in the US, you will be responsible to file your taxes in the US for each year you do business. If you purchase real estate using a company, then your company must file. In some cases, the owners, or members, of the company will also have to file a tax return.
More Info About Tax Returns in USA
Tax Liquidation in USA for Foreigners – starting $150
Tax Liquidation in USA for Companies – starting $200