Profile picture for FANG CAI

Is it necessary to register a LLC for my property investment?

I was suggested to register a LLC for managing properties I'm going to purchas in Vegas and was told I could save some income tax as foreign investor. If I don't have LLC, the property managment company will need to pull out 30% of my rental income and send to IRS each year. If I have a LLC, the pull out will be 10%. My question is if the 30% goes to IRS, whether I can get refund from IRS after filling the tax return with all the expenses I spend on managing the property? If so, what's the advantage to have a LLC?
 
  • October 18 2012 - US
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Answers (3)

Profile picture for FANG CAI
Thank you for your answers. Could you refer a good acountant and attorney to me?
  • October 19 2012
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Profile picture for Ofe Polack
The LLC, which needs to be registered, so that you can provide a certificate of good standing to the buyer, does not shield you from paying taxes.  Anybody who does business in the US pays US taxes on those earnings.  You need to consult with an accountant who deals with foregin investors and/or a real estate attorney who does likewise. 
  • October 18 2012
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If you have a property in a LLC , it is only protected if it is 2 member LLC.As a single iLLC, it is subject to personal income tax requirements and has less protection,
Consult an accountant or a foreign investor attorney in the US.You will still have to report income and expense each year of the company .
  • October 18 2012
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