Summary: Specifics of U.S. Company Registration for Real Estate Investment Purposes Many international investors are looking into the U.S. real estate market as their next source of investment. This is due to the robust nature of that market, and reliable legal framework ensuring lower risk than in most developing markets. MyUSACorporation.com specializes in helping foreign investors with proper registration of the legal entities needed to serve as holding companies for their real estate assets. Choice of Legal Entity Very important: it is a highly recommended and a common practice to register a unique legal entity for each individual real estate asset, in order to limit the liability of that particular property to itself and shield the investor and his/her other properties from any potential liability related to that property. We invite you to read our article on Limited Liability Protection to understand this very important issue in depth. Foreigners can choose primarily between two types of entities: LLC and C-Corporation. LLC is the entity of choice when it comes to real estate and practically all real estate assets in America are held in LLCs. It is also the most common type of entity chosen by our foreign clients due to its simplicity, flexibility and single taxation. C-Corporation mostly chosen by young entrepreneurs looking to obtain Angel or VC financing. It is however important to also know that an investor does not need to own those LLCs directly, and instead can opt for a holding schema where one company (possibly a C-Corporation, in a friendly state such as Wyoming or Delaware, for tax and other reasons), holds all LLCs that in turn hold the real estate assets. This structure also helps preserve anonymity (read more about that below). You can see a comparison between LLC and C-Corporation here: LLC vs. Corporation. Choice of State As mentioned above, for real estate holding purposes an investor should opt for registering an LLC. Since we are talking about a physical cash-flowing asset the choice of state is limited to the state where the asset is located. So for example, to buy a condo in Miami, Florida, one must register a Florida LLC. https://www.myusacorporation.eu/us-company-registration-for-real-estate-investors.html
