LLC for Real Estate Investors
Protect Your US Real Estate Investments
Shield your assets, optimize taxes, and avoid the 30% withholding trap. A US LLC is essential for foreign real estate investors.
Common Challenges
Why foreign investors face tax traps
Without proper structure, you could lose 30-40% of your investment to unnecessary taxes.
30% Withholding Tax
Without proper structure, rental income is taxed at a flat 30% rate with no deductions allowed.
No Expense Deductions
FDAP (passive) income doesn't allow you to deduct mortgage interest, property taxes, or repairs.
40% Estate Tax Exposure
US real estate over $60K faces potential estate tax of up to 40% on death for non-residents.
15% FIRPTA Withholding
When selling, 15% of the gross sale price is withheld, often more than your actual profit.
The Solution
How a US LLC protects your investment
A properly structured LLC provides liability protection, tax optimization, and professional management capabilities.
Elect ECI Treatment
Treat rental income as "effectively connected income" and deduct all expenses. Pay tax only on net profit.
Asset Protection
Your LLC shields personal assets from tenant lawsuits, slip-and-fall claims, and liability.
Professional Property Management
Property managers require a business entity. Your LLC makes hiring professionals seamless.
Bank Account Access
Receive rent, pay mortgages, and handle expenses from a proper US business bank account.
Tax Treaty Benefits
Properly structured LLCs may qualify for reduced withholding rates under tax treaties.
Estate Planning
Proper LLC structure can help reduce estate tax exposure for your heirs.
What's Included
Everything you need in one package
No hidden fees. No upsells. Just a complete LLC formation with everything you need to hold US real estate.
Real Estate LLC Package
Everything to hold US property investments
Why StartGlobal
Built for international real estate investors
We've helped thousands of foreign investors from around the world structure their U.S. real estate holdings properly.
Success Stories
How investors structured their portfolios
Real investors who used a US LLC to protect and grow their real estate holdings.
Chen
Singapore • Rental Properties
Chen owns 3 rental properties in Texas. His Wyoming LLC lets him deduct all expenses and pay tax only on net profit instead of the 30% flat rate on gross rent.
Klaus
Germany • House Flipping
Klaus flips houses in Florida. His LLC provides liability protection during renovations and reduces FIRPTA complications when selling properties.
Aisha
UAE • Short-Term Rentals
Aisha runs Airbnb properties in Arizona. Her LLC allowed her to open a US bank account for guest payments and hire a property management company.
FAQ
Common Questions
Everything you need to know about LLCs for real estate
It depends on your risk tolerance. Many investors use a single LLC for multiple properties to keep costs low, while others create separate LLCs for each property to isolate liability. If one property gets sued, having separate LLCs protects the others. We can help you decide based on your portfolio.
FIRPTA (Foreign Investment in Real Property Tax Act) requires buyers to withhold 15% of the gross sale price when foreign owners sell US real estate. This withholding is often more than your actual tax liability. You'll file a return to get the excess back. Proper structure and planning can help minimize FIRPTA impact.
You must make a Section 871(d) election with your first US tax return. This treats your rental income as "effectively connected income" rather than passive FDAP income. With ECI treatment, you can deduct expenses and pay tax only on net profit at graduated rates instead of 30% flat on gross rent.
Foreign-owned LLCs must file Form 5472 annually reporting transactions with the foreign owner. The penalty for not filing or filing late is $25,000 per form. This is why proper compliance is critical. We help ensure you meet all filing requirements.
Yes, but options are more limited than for US citizens. Foreign national mortgage programs exist, typically requiring 25-30% down and higher interest rates. Some investors use portfolio lenders or purchase cash, then refinance. Having an LLC and US bank account makes the process smoother.
Many investors form LLCs in Wyoming for privacy and low fees, even for properties in other states. However, if you own property in a specific state, you may need to register your LLC there as a "foreign LLC." We can help you understand the requirements for your situation.
Ready to Protect Your Investment?
Join thousands of real estate investors who trust StartGlobal. Get your US LLC and start investing with proper protection.