Many will want to insure that all procedures are managed quickly, expeditiously and properly as well as independently and in certain instances with complete anonymity. Second, the dilemma of privacy in regards to your investment is very important. With the rise of the world wide web, private information is growing increasingly more public. Even though you might be required to disclose information for taxation purposes, you aren’t required, and should not, disclose land ownership for all the world to view. 1 purpose for solitude is valid asset protection against questionable lender claims or suits. Normally, the less individuals, companies South Florida Real Estate or government agencies understand about your personal affairs, the greater.
Reducing taxes on your U.S. investments is also a significant consideration. When investing in U.S. real estate, an individual has to consider whether land is income-producing and whether or not that income is’passive income’ or income produced by trade or business. Another concern, particularly for elderly investors, is if the investor is a U.S. resident for estate tax purposes.
The purpose of an LLC, Corporation or Limited Partnership is to make a shield of protection involving you personally for any liability arising from the actions of this thing. LLCs offer higher structuring flexibility and better creditor protection compared to limited partnerships, and are generally preferred over corporations for holding smaller real estate properties. LLC’s aren’t subject to the record-keeping formalities that companies are.
If an investor uses a corporation or an LLC to hold real property, the entity might have to enroll with the California Secretary of State. In doing this, articles of incorporation or the statement of advice become visible to the world, including the identity of their corporate directors and officers or the LLC manager.