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# Entrepreneur of the Week Natalie Alter # Post 2 ** Possession of a property in the US in private registration or under LLC? ** One…

#יםמהשבוי Nathalie Alter #Post2 **Holding a property in the US in a private registry or under an LLC?** One of the common questions of real estate entrepreneurs in the USA is whether to hold the property in a private registry or under an LLC. I will try to explain in a simple way the concepts you should know about the subject, and above all - the advantages and disadvantages of each choice. **So what is an LLC anyway?** Similar to a limited company...

LLC - Limited liability company

In-depth discussion of LLC Because there are a lot of questions about the subject of LLC I would like to hear from people who have LLC and they were in a situation that the LLC protected * or * went through a situation that if there was an LLC she would protect them. Request: First-hand stories and not “I heard. . . "Or" my friend "- I know a lot of them !!!!…

Responses

  1. At LLC you can enjoy several things:

    1. An LLC is a legal entity separate from its owner - just like a limited company. If a property is registered in the name of the LLC and God forbid the tenant sues the owner of the property, the plaintiff will not be able to claim compensation beyond the value of the LLC in this case the property itself. As stated in another response, as with limited companies, if the LLC partners acted in bad faith, or neglected certain obligations imposed on the LLC in the country in which it does business, there is a reasonable possibility that the court will not consider the LLC's legal protection. .

    2. An LLC is a transparent entity for tax purposes. That is, even though it provides legal protection as a limited company, from a tax point of view - it is not liable to corporation tax. All profits of the LLC are associated with its owners (according to ownership percentages) and are taxed according to the type and level of income according to their marginal tax bracket.
    Now, if an LLC is established in a particular country, the legal protection is valid only for that country (and that too, only if certain conditions are met). In order to enjoy legal protection in other countries, you must register for business activities in the specific country in which you want to start operating.
    In addition, the registration for business activity in another country beyond the original country of establishment is almost identical to the establishment of a new LLC in terms of costs and debts.

    3. Holding assets located in the United States through an LLC with more than one common (separate * American * legal entity) can be a solution to the problem of existing U.S. estate tax. A person who is not a U.S. citizen, who owns a real estate property in his name (not by an LLC) in the U.S. who dies, can bequeath up to $ 60,000 without tax liability. Any amount above this threshold is subject to an estate tax of 18% -40%.

    4. When selling a property in the United States, if an American LLC with more than one joint owner owns the property and is the seller, withholding tax of up to 15% of the sale price (FIRPTA) can be avoided.

    5. The main disadvantage of LLC is a higher fee when it comes to preparing tax returns, which is due to the higher complexity of the reports. Additional costs may also arise from the various obligations imposed on the LLC depending on the state in the U.S. in which it operates.