Rehabber · Columbus, OH · Member since 2013 · 30 posts · 7 votes
We are located in Columbus Ohio and we fix and flip a lot of properties to out of state investors. We've been approached by several different Canadian investors looking to buy here and it seems that no two investors that we have spoken with invest the same way.
What I mean is... Some of the Canadian investors set up a U.S LLC, other investors told us that, that's wrong because of Canadian tax laws. Some investors said they set up a U.S bank account, others said they don't.
I was wondering if anyone could shed some light on their experience working with Canadian investors and the most effective protocol in these types of transactions.
Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
13y
Don't let any of them set any of that up without consulting a pro. For one, LLCs actually hurt Canadians. Instead, they need to set up, I forget what it is- LLLP or some other acronym. It's the Canadian version of an LLC, more friendly to their tax rules. And once they set up the US version of that entity (whatever it's called), they do need a US bank account.
Consult a pro or they will be in trouble! Mega tax penalties.
Rehabber · Columbus, OH · Member since 2013 · 30 posts · 7 votes
13y
Thanks for the reply. I have heard that, about the tax penalties. To me, it's all a bit confusing but there are a lot of Canadian investors contacting us which makes it interesting :)
I've heard that Canadians get taxed outrageously on American LLC tax laws.