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Foreigners Holding U.S. Property & The Need for Incorporation & Trust Work

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Foreign investors can stand to make a decent profit and a strong reputation through holding or renting property in the United States — but only if legal obstacles and challenges are understood and overcome readily. Depending on both the background and the objective of the foreign investor, there will be a varying myriad of rules and regulations regarding tax law, real estate law, business law, and even a business-related form of estate planning. Finding a legal advocate to act as a guide at the beginning of the entire process is crucial.

Your Advocates and our Fort Myers attorneys can help you manage intricacies each step of the way, starting with acting as a registered agent for your business venture. We offer registered agent services to foreign companies that want to get a foothold in the United States. When chosen to be your registered agent, we can act as the physical address for your business initially, receiving important mail-only forms for you, and also helping you complete and file these forms on-time. In many regards, there can be no foreign investor that holds land in Florida without first there being a registered agent acting on their behalf.

Business Structuring & Legal Compliances

After we are your registered agent, we can discuss how your business will be formed. Many foreign investors, companies, or entities that want to get involved with real property in the U.S. choose to incorporate as an LLC (Limited Liability Company) due to tax benefits. Our registered agents are also highly-experienced lawyers, so we can help you assess your unique situation and decide if an LLC will be best. If it is the right option, we can work from there to finalize your incorporation and get your business pointed in the right direction, whether you want to utilize your U.S. property for your own productions or offices, or if you would rather just rent the space to others.

Other important aspects of incorporation we will want to address include:

  • Tax withholdings, including “sale of property” and “passive investor” rules.
  • Electing to tax passive rental income as if it was directly tied to a business in the U.S.
  • How to anticipate eventually selling your business, or buying another to expand.

Managing a Foreign Investor Trust

Planning ahead far ahead, even before your LLC is finalized, is too important to really convey in words. We offer trust creation services that can protect control of your company or your real property after you pass away or become indisposed by placing it within a foreign trust. The creation of an LLC can already protect your personal assets from creditors in case of default, and the use of a business trust can, in turn, can protect that LLC further. When used in conjunction and handled properly, trust work acts as a key component that should interest any foreigner holding property in the U.S.

Remember that in Florida, a foreign-based company with property in the U.S. begins with a registered agent. Let Your Advocates take up this mantle for you and act as trusted legal counsel in all other business-related matters, so you can focus on the other inner workings of your company. Call 239.970.6844 or contact us online to schedule a free consultation with our Fort Myers registered agents.

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