Hello BP Forums.
I am a new investor and WILL get started investing in US real estate from Canada in February. I have almost everything lined up, a couple agents, a property management company, lender (just one so far, hard money), have chatted with a few contractors, etc. But I am stuck in setting up an LLC and a good cross-border tax planner (I've spoken with a few, but I think I can find something better) I have some more consult calls lined up as I keen networking, and I'm itching to get started.
The main thing I need right now is a proper LLC structure. These are the options I've been advised:
- Form LLC, create LP's for small groups of properties (2-4). Have LLC be a 1% general partner of each LP.
- Form LP's with me owning 99% and a C-Corp owning .5%-1%.
- C-Corp with 1% ownership LLC's for each property.
Only guidance I've received on the Canadian side is to open an LLC here, which is considered a corporation. US C-Corp or LLC would be a pass through entity. Now, US C-Corp would pay dividend to Canadian corp, and Canadian corp pays me as employee. Not sure how it would work if I open a US LLC and not a US C corp... anyone know?
Last is, are any of these structures protect me enough? I've seen and read about the Delaware and Wyoming llc's but I think that is more beneficial later as my portfolio grows.
Any thoughts are greatly appreciated, and! as a thank you and if we meet a bag of nice Colombian coffee :) where I'm from, I do source the real stuff, I know people... lol