LLC vs Inc for property ownership in the USA

[AHK84]

Am a non US resident and looking at getting a few properties in the US to rent out, and am looking for the best structure for such an endeavour as eventually would like to get involved in construction through the same entity so I wanted to start with the right structure, also payments for the rentals will be paid into one of those EMIs.

You're advice and guidance would be most appreciated and if you can recommend an agent also for registering the entity it would be also appreciated.

Thanks in advanced.
AHK

 

[Sols]

For buying and renting out properties, the most common structure is to have one LLC per property. That isolates the risks of reach property and they can't spill over to each other. US is very litigious. You don't want a tenant slipping on the marble stairs, blame you for it, sue you, and in the process be able to get their hands on other properties.

The LLCs can be owned by you personally or by a holding company, which could be a US C Corp or a foreign company. If your future plans include construction and other more sophisticated undertakings, having a C Corp can have advantages over running everything as LLCs. C Corps can defer profits, whereas an LLC cannot.

Toggle signature
This is the probably the answer to your question.

 

[AHK84]

Sols said:
For buying and renting out properties, the most common structure is to have one LLC per property. That isolates the risks of reach property and they can't spill over to each other. US is very litigious. You don't want a tenant slipping on the marble stairs, blame you for it, sue you, and in the process be able to get their hands on other properties.

The LLCs can be owned by you personally or by a holding company, which could be a US C Corp or a foreign company. If your future plans include construction and other more sophisticated undertakings, having a C Corp can have advantages over running everything as LLCs. C Corps can defer profits, whereas an LLC cannot.
Click to expand...

Hi Sols,

Many thanks for that response, the multiple LLCs for multiple properties but where would the rentals go to the C Corp for the 3 LLCs, I will look into the C Corp option thanks for your advise.