I am planning to purchase property in Nevada and maybe Texas, in a Nevada LLC. Just wondering if there would be any benefit in using a Delaware LLC instead.
This is not accounting or tax advice. Please consult with a qualified accountant to ensure this
information is suitable for your individual needs.In my experience, different accountants and advisers will give different advice. An LLC in Nevada is OK for direct ownership because Nevada does not have any state income tax. This is also true for Delaware. We would use this LLC as a holding company for all US properties up to an income threshold of $35,000, after which the federal tax rate increases and it is better to break up the assets into more cells.
If you are buying property in other states, we generally recommend using a single member, pass through LLC in the state where the property is owned with your Delaware or Nevada LLC as the member. This allows profits to be passed on without attracting state tax. Buying through super funds needs careful consideration about structure and who controls it so you do not breach regulations.
Hope this is helpful.
Many thanks
Vincent Selleck
http://www.888wealthcreation.com
Buyers Agent for US foreclosed propertyJust to confirm, if I buy a property in Georgia and my main holding Deleware LLC becomes the single member of the Georgian LLC, does that mean that I don't have to pay any state tax in Georgia or Deleware (ie pay no state tax at all?)
The only extra cost then is maintaining the Georgian LLC.Can my Deleware LLC own the Georgian property directly without the Georgian LLC?
Hello
As I understand it, an LLC will need to be established in the state where you are purchasing.
However as mentioned by Vincent, you setup an LLC in a more tax friendly state as a controlling entity.All your profits from your Georgia LLC lets say would need to be sent through to your "Delaware or Nevada LLC" as management or associated costs (just paperwork) to show you had no profit to pay state tax on in Georgia.
Just be careful although there are no state taxes in Nevada or Delaware there is an annual cost payable to the state for holding an LLC there and in such states as Michigan the state tax rate is only 1.5% yes that's right one point five percent so in my case setting up an LLC elsewhere would cost more. You make want to check your state's tax rate and see what works best for you and also schedule an appointment with an accountant when you are over there.
Best of luck.
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