How did you register yours? * ITIN * LLC * EIN *
Hello brilliant BP crew.
I'm just starting to invest from New Zealand and enjoying the podcasts that brought me here and reading all your informative posts :)
I believe from some research before I start sourcing any properties I'll need these:
- ITIN (https://www.irs.gov/individuals/international-taxp...)
- LLC (https://www.irs.gov/businesses/small-businesses-se...)
- EIN (https://www.irs.gov/businesses/small-businesses-se...)
I'm wondering if there is a best practice in which order I should attain them.
Are they generic enough that I'm best just to do it myself via the above .gov sites?
Or has anyone had success via an agent?
So far I have accumulated:
- USA bank account (Wells Fargo chq/sav)
- USA 'address' (USA2me.com mail forwarding service)
Thanks for reading, looking forward to hearing how you've all gotten these sorted..
Hello again everyone :)
In the past few months I have received and started using my new Wells Fargo Secured Credit Card.
Spending a very small percentage each month (paying the full balance off each month automatically) in order to build my credit score.
(I ended up buying a second investment property in Australia too as I found a great looking deal.)
Question:
Is my Secured Credit Card a waste of time if it's not yet connected to an ITIN?
Should I just apply for my ITIN myself (via https://www.irs.gov/individuals/international-taxp...) or is it smarter to go through some sort of agent / lawyer?
It's probably quite simple right haha!?! Or are there best / better practices with this?
I've read that LLC's are not a good choice if you're a Canadian. I don't believe they are recognized in our treaty.
I've been told an LP is the way to go
Originally posted by @Dave Sandford:
Hello again everyone :)
In the past few months I have received and started using my new Wells Fargo Secured Credit Card.
Spending a very small percentage each month (paying the full balance off each month automatically) in order to build my credit score.(I ended up buying a second investment property in Australia too as I found a great looking deal.)
Question:
Is my Secured Credit Card a waste of time if it's not yet connected to an ITIN?
Should I just apply for my ITIN myself (via https://www.irs.gov/individuals/international-taxp...) or is it smarter to go through some sort of agent / lawyer?
It's probably quite simple right haha!?! Or are there best / better practices with this?
Not sure if you sorted your ITIN yet but I applied for my own ITIN. It was just a matter of completing the W-7 and mailing it back to the IRS. No 3rd party required.
Originally posted by @Jordan Sinclair:
Originally posted by @Dave Sandford:Hello again everyone :)
In the past few months I have received and started using my new Wells Fargo Secured Credit Card.
Spending a very small percentage each month (paying the full balance off each month automatically) in order to build my credit score.(I ended up buying a second investment property in Australia too as I found a great looking deal.)
Question:
Is my Secured Credit Card a waste of time if it's not yet connected to an ITIN?
Should I just apply for my ITIN myself (via https://www.irs.gov/individuals/international-taxp...) or is it smarter to go through some sort of agent / lawyer?
It's probably quite simple right haha!?! Or are there best / better practices with this?Not sure if you sorted your ITIN yet but I applied for my own ITIN. It was just a matter of completing the W-7 and mailing it back to the IRS. No 3rd party required.
That's great, thank you Jordan.
Going to do that now..
How long did yours take from application to being registered?
Originally posted by @Josh Stack:
Hello everyone,
This is a fascinating and informative thread. Thanks for all the detailed replies.
This might highjack the thread a bit but what are the tax implications for non-resident foreign nationals owning property through an LLC in the statutes?
Are you only taxed on the net results of the activities of the LLC? Do any of your other income or activities outside the states get sucked into US taxation?
Reason for asking is in a US citizen who has lived abroad for years and has been grappling with the US worldwide taxation scheme - very expensive and not fun!
The short answer is, it seems to me that it depends on the territoriality of the tax basis of you country.
Some countries like US, France tax their fiscal resident (resp US person) on their worldwide income, so it seems preferable for french to set up the LLC as corp, and pay dividend to owner (not sure what happens if it is a partnership).
Some countries like Hong Kong tax their fiscal residents on their territorial income only. Then you can declare US and state tax where the property is located and keep LLC disregarded for tax purpose.
see http://www.investor-realestate-accounts.com/blog/2...
Also, there is an important set of new requirements on disregarded LLC since 2017 for non US persons: http://www.investor-realestate-accounts.com/blog/1...
These questions come back periodically on the forum. These are questions for lawyer and CPA...
The short answer is most people own their first handful properties without LLC, but very few operate dozens of properties over decades without a LLC. You have to choose where you put the conservativeness cursor.
I advise you get an ITIN asap to open a bank account. see http://www.usa-nra-tax.com/setup.html
LLC becomes more advisable for many properties in high risk areas. Note that LLC for non US person come with stringent accounting requirements since 2017.
Originally posted by @Dave Sandford:
Originally posted by @Jordan Sinclair:Originally posted by @Dave Sandford:
Hello again everyone :)
In the past few months I have received and started using my new Wells Fargo Secured Credit Card.
Spending a very small percentage each month (paying the full balance off each month automatically) in order to build my credit score.(I ended up buying a second investment property in Australia too as I found a great looking deal.)
Question:
Is my Secured Credit Card a waste of time if it's not yet connected to an ITIN?
Should I just apply for my ITIN myself (via https://www.irs.gov/individuals/international-taxp...) or is it smarter to go through some sort of agent / lawyer?
It's probably quite simple right haha!?! Or are there best / better practices with this?Not sure if you sorted your ITIN yet but I applied for my own ITIN. It was just a matter of completing the W-7 and mailing it back to the IRS. No 3rd party required.
That's great, thank you Jordan.
Going to do that now..
How long did yours take from application to being registered?
Around 3 months
I have a generalised tax question relating to the ITIN..
Say one's making a passive income from cash flow positive property in Australia (so i'm already paying tax on top of expenses)..
If I get an ITIN number (and thus am registered for USA tax):
Will the reciprocal agreement between America & Australia mean I have to pay the US government tax on my Australian income too?
Sounds like a stupid question but I've gone an confused myself and keen for links or clarification please experienced crew :)
Also, I'm a Kiwi - just to confuse things.
Originally posted by @Dave Sandford:I have a generalised tax question relating to the ITIN..
Say one's making a passive income from cash flow positive property in Australia (so i'm already paying tax on top of expenses)..If I get an ITIN number (and thus am registered for USA tax):
Will the reciprocal agreement between America & Australia mean I have to pay the US government tax on my Australian income too?
Sounds like a stupid question but I've gone an confused myself and keen for links or clarification please experienced crew :)
Also, I'm a Kiwi - just to confuse things.
I can share my understanding of this scenario and suggest you do research from this...
What you are referring to would only be a tax implication if the 'Substantial presence test' came into effect for you. That is when you consistently spend time in the US.
If this doesn't apply to you, you may avoid the implications.
Originally posted by @Dave Sandford:I have a generalised tax question relating to the ITIN..
Say one's making a passive income from cash flow positive property in Australia (so i'm already paying tax on top of expenses)..If I get an ITIN number (and thus am registered for USA tax):
Will the reciprocal agreement between America & Australia mean I have to pay the US government tax on my Australian income too?
Sounds like a stupid question but I've gone an confused myself and keen for links or clarification please experienced crew :)
Also, I'm a Kiwi - just to confuse things.
Just getting an ITIN doesn’t mean your taxes on your world wide income. You’ll only be taxed in US income as long as you stay within the guidelines to be a nonresident. If you stay too many days in the US or apply for residency you could potentially pay tax on your world wide income. Best advice. Seek a CPAs advice and work closely with them. This realm is too confusing to tackle alone. Focus on the things you know which is real estate.