Hello all,
I hope what I am asking has not been asked before in different posts, I did have a look and could not find much. I also had a bit of a look without much help.
I have been trying to get everything set up to allow us to start investing in property in the USA. Basically, we are two mates who wanted to pool together some funds to buy a property over there, starting small but working our way up higher if it all goes well.
Our LLC formation should be complete within the next couple days. And once this is done we are looking at getting a bank account based in the US set up. We are hoping to use CitiBank as they have branches in Aus and USA and we can do international transfers for free aparently. I hope this is the case and there is not just some fine print in their terms and conditions adding an extra fee on or something.
To get the bank account for the LLC, it seems that we need to obtain and Employer Identification Number (EIN), even if it is just for banking purposes. I found the form SS-4 with the instructions at http://www.irs.gov, it does not seem to be too complicated, however I just want to make sure I get it right so I do not have to do it again. Although it does come with the instructions which are fairly helpful, I would like to talk to someone who has done these forms before from a similar position who may be able to assist me?
Also the form asks for an Individual Taxpayer Idenfitication Number (ITIN), however reading the instructions I am not 100% sure if this is required for our case as we do not pay individual tax in the USA. It would be good if it was not required as they say it takes up to 6 weeks to get the number after applying.
Has anyone had first hand experience filling out these forms, mainly the EIN one. It would be very useful to have a discussion on some of the points.
Thanks
bump.
Im also interested in this info..
streamlineinvesting wrote:Hello all,I hope what I am asking has not been asked before in different posts, I did have a look and could not find much. I also had a bit of a look without much help.
I have been trying to get everything set up to allow us to start investing in property in the USA. Basically, we are two mates who wanted to pool together some funds to buy a property over there, starting small but working our way up higher if it all goes well.
Our LLC formation should be complete within the next couple days. And once this is done we are looking at getting a bank account based in the US set up. We are hoping to use CitiBank as they have branches in Aus and USA and we can do international transfers for free aparently. I hope this is the case and there is not just some fine print in their terms and conditions adding an extra fee on or something.
To get the bank account for the LLC, it seems that we need to obtain and Employer Identification Number (EIN), even if it is just for banking purposes. I found the form SS-4 with the instructions at http://www.irs.gov, it does not seem to be too complicated, however I just want to make sure I get it right so I do not have to do it again. Although it does come with the instructions which are fairly helpful, I would like to talk to someone who has done these forms before from a similar position who may be able to assist me?
Also the form asks for an Individual Taxpayer Idenfitication Number (ITIN), however reading the instructions I am not 100% sure if this is required for our case as we do not pay individual tax in the USA. It would be good if it was not required as they say it takes up to 6 weeks to get the number after applying.
Has anyone had first hand experience filling out these forms, mainly the EIN one. It would be very useful to have a discussion on some of the points.
Thanks
From what I understand is that you will get an EIN when you set up the LLC, the ITTN if I am correrct is for USA citizens,. The best advise I could give is to contact an accountant based in Australia who has USA knowledge.
I have set up a LLC and all I need is an EIN number… to open the US bank account.as tax time approaches I will have more info.
Jeff
Jeff2InvestUSA wrote:From what I understand is that you will get an EIN when you set up the LLC, the ITIN* if I am correrct is for USA citizens,. The best advise I could give is to contact an accountant based in Australia who has USA knowledge. I have set up a LLC and all I need is an EIN number… to open the US bank account.as tax time approaches I will have more info. JeffUSA Citizens receive a SSN, non US Citizens cannot receive a SSN and to file tax returns you have to obtain an ITIN. From W7 from the IRS is the form you need to fill out. I have heard an ITIN is not required to obtain an EIN, but looking through the form to get the EIN it looks like it may be required, this is why I am looking for someone who has done it before who can guide me through it.
There is a recent thread
https://www.propertyinvesting.com/forums/property-investing/overseas-deals/4335057
Hope this helps
Andrew
itsandrew
Go as far as you can see and you will see further.
The information supplied in the above link does work with the IRS and I have been using this method recently for my clients with success.
Hi Act Today,
May I ask what type of assitance you may be in purchasing a US property? can you set up LLC's and ITIN numbers? If so, how long is your ITIN numbers taking to come through?
USA, as you have listed that you do not accept e.mails, feel free to e.mail me [email protected] and I will be happy to provide you information.
Curious as to why everyone thinks they need to create an LLC to take title to property in the US.
EIN numbers and LLC's at least for US citizens are created in a matter of hours not weeks.
Forming an LLC is considered necessary for asset protection and is not as quick a process for non residents. The formation can be done in a matter of hours but the confirming letter may take several weeks to be sent. The EIN can be done via fax with a follow up phone call where the IRS Officer will go through the form with you and immediately issue the EIN provided all is in order.
Judith, I just wanted to ask (not sure if you know) how a non-US owner can get the EIN number issued for their LLC? I know they can if either they have a SS number or an ITIN number (which you usually obtain when filing your tax return) but is there a way to do it without either one of them?
Asset protection in my opinion is really over blown. Good insurance policy which you will want to have anyway. and an umbrella policy which is very inexpensive will do the trick for asset protection.
Asset protection appears to be a good benefit, which is one reason we chose to go with an LLC. But the main reason we went this way is because there is more than one person involved in our investing, doing it under one of our names would not have worked too well. And this way it keeps things from getting messy later on as it is all under just one name, with a 50/50 split of the profit/loss. You are correct though and I believe if you get adequate insurances and umbrella policies then it is not really essential that you obtain the LLC, if it is going to be a single member LLC that is.
Plus I just like the sounds of owning a company in Florida, makes me feel good.
HighIncomeProperty,
go to the IRS website and search form SS4 then also look through the instructions. You will find a telephone number to call. Once you are connected the operator will want you to fax the form while you stay on the line and then will go through the form and if all is in order will issue you with an EIN immediately.Jayhinrichs.
I would highly recommend that you do not purchase property without the benefit of an LLC. Public Liability Insurance costs around $700 pa and covers up to five dwellings but you can still be personally sued. With an LLC it is not so easy to be found or suedHighincome,
when you establish an LLC you have to have a registered agent for Service that is located in the state of your LLC. If you get sued its your resident agent that gets served. And you will get sued personally as well no lawyer just sues the LLC.
The reality there is next to no litigation involving single family rentals and for instance I have a 3 mil umbrella policy for liablity which cost me 300 bucks a year. LLC will cost more each year filing a tax return. I can see using LLC if there are multiple partners however not for a single person unless you have a really large portfolio. there are attorneys in the states that will recommend you have a different LLC for each address or property. And yes it would add a layer of protection but protection from What. In 33 years of owning up wards of 200 units I have never had one lawsuit by a tenant. The only time you will see a court room is in the event of an eviction. There is just too much paranoia… The caveot being if your very very wealthy.. The other reason to have insurance is that is where a sueing attorney will focus their attention in the unlikely event of a water landing>
However the insurance company pays for 100% of your defense and they are masters at defending litigation its what they do.Judih,
Thanks a lot for that – does this usually enable your foreign investors to open up bank accounts as well (using the LLC) in the United States?I was just talking to one of my attorneys on this what seems to be this need to buy properties in an LLC. His comment was even if someone got a judgement It is unlikly in the extreme that they would go to the expense to try to collect it in another country. There just is not enough money involved in these properties or potential liablity that anyone is going to chase a forigner for.
Good insurance is all ya need, with a personal umbrella for 300 to 300 a year. thats real protection
ActToday wrote:HighIncomeProperty,
go to the IRS website and search form SS4 then also look through the instructions. You will find a telephone number to call. Once you are connected the operator will want you to fax the form while you stay on the line and then will go through the form and if all is in order will issue you with an EIN immediately.Jayhinrichs.
I would highly recommend that you do not purchase property without the benefit of an LLC. Public Liability Insurance costs around $700 pa and covers up to five dwellings but you can still be personally sued. With an LLC it is not so easy to be found or suedBank accounts can be open if you can find a bank that will do so. I have one that will still open for a foreign person who is not in the country but it is difficult with the Patriot Act.
That is what I thought, we’ve been able to get it done for a few clients using HSBC Premier, but without the customer visiting the U.S, it’s very difficult with all the paperwork.
Is the HSBC account a US bank account, or is it just an Australian account in US currency?
I currently have an ITIN and want to open a US bank account to do some investing in tax liens. The bank account issue has been one of my hurdles as I believed that you needed to visit the US to open an account in your personal name.
Is this not the case? Can anyone point me in the right direction?
Simon.
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