Klimmy, your account isn't accepting emails – can you send me your details please?
Hi Marthamel. You should be able to view my email address now. Cheers, Kev
Marthamel wrote:Klimmy, your account isn't accepting emails – can you send me your details please?hi marthamel
can you send me the attorneys details to [email protected] thanksHi Everyone,
We have a question regarding bank accounts and linking them to the LLC.
We are from Sydney, Australia and want to start an LLC in the USA and then open a bank account in the USA in the LLC's name to then buy property.
Our question is should we then open a bank account in Australia under our individual names or form a company here and then open a bank account in that company's name in Australia?
The reason I'm asking is because we want to link the two bank accounts and minimise transaction fees. Are our individual assets protected from litigation if the bank account in Australia is under our individual names?
Thanks in advance,
Streamline Investing
I thought you would be able to transfer funds to the vendor bank direclty from your personal US account for the purposes of settling a purchase even if you nominate for the property to go into an LLC. But just guessing.
Here you go Marthamel: [email protected]. Thanks
Marthamel wrote:Klimmy, your account isn't accepting emails – can you send me your details please?Thanks Kev, and grossrealisation, I will send you both the info.
streamlineinvesting wrote:We… want to start an LLC in the USA and then open a bank account in the USA in the LLC's name to then buy property.Our question is should we then open a bank account in Australia under our individual names or form a company here and then open a bank account in that company's name in Australia?
The reason I'm asking is because we want to link the two bank accounts and minimise transaction fees. Are our individual assets protected from litigation if the bank account in Australia is under our individual names?
It is my understanding that your personal assets will be protected through the LLC, and so you shouldn't need the extra layer of a company in Australia. That is the whole purpose of having an LLC, and individuals do invest directly through LLCs. However, I do recommend you check this with a US attorney.
HTH
MarthaMarthamel wrote:Thanks Kev, and grossrealisation, I will send you both the info.Hi Marthamel
We are in Melb and planing a trip to US in next few month. It would be much appreciated if you could forward the detail of your attorney to my email address [email protected].
Many thanks.
Lee
Will do Lee
MarthaAlthough direct ownership of U.S. property by foreign investors has some advantages, the non tax advantages – exposure to estate tax / death taxes and personal liability will most likely render direct investment unacceptable.
James Simango, CPA
USTaxCentral.com
http://www.ustaxcentral.comMarthamel wrote:streamlineinvesting wrote:We… want to start an LLC in the USA and then open a bank account in the USA in the LLC's name to then buy property.Our question is should we then open a bank account in Australia under our individual names or form a company here and then open a bank account in that company's name in Australia?
The reason I'm asking is because we want to link the two bank accounts and minimise transaction fees. Are our individual assets protected from litigation if the bank account in Australia is under our individual names?
It is my understanding that your personal assets will be protected through the LLC, and so you shouldn't need the extra layer of a company in Australia. That is the whole purpose of having an LLC, and individuals do invest directly through LLCs. However, I do recommend you check this with a US attorney.
Operating Agreement (response to comment above)
You are are correct, BUT ………, there are other documentsn that will help protect you from liablility. You need to have an operating agreement for the LLC. What is a less know is what is called piercing the LLC veil. This is when the person suing the LLC tries to get the court to set aside the LLC protection. One may claim that you as the owner did not really treat it as a business as one seperate from you.
The best way to challenge this kind of claim and to preserve LLC protection is by having an official operating agreement and following the provisions of the operating agreement.You should never settle for anything other than a professional operating agreement for the LLC as this document is the fundamental agreement the major matters of the business.
James Simango, CPA (US Qualified), CPA Australia
USTaxCentral.com
http://www.ustaxcentral.com
(07)3040 3586Hi Marthamel,
Could you please forward to me the details of your attorney?
Email to :- [email protected]With thanks,
THMarthamel wrote:JamesI think the issue is that if you have an LLC that is newly established, then you don't have a credit rating. However, this can be gotten around, if you are a bit creative. For a start, if you are 90% sure you will invest there, set up your LLC and get "trading" … that will help. Then when you are ready to go ahead, you will find it more easily. There is a business, associated with my USA attorneys, that helps with establishing a credit rating for newly formed entities.
LLC is definitely the way to go according to my USA attorneys. The most protected states for litigation for LLCs are Wyoming, or Nevada if you have more than one shareholder. I am happy to share the details of my attorneys if you want the info. The will do the registering of an LLC for just under $700, and have good packages to deal with ongoing issues like mail and agms, etc. If you buy property in a different state, you just register for operations in that state too.
Wyoming is very cheap, as it is trying to establish itself as a good state for people to incorporate.
However, you also need to insure.
The structure of an LLC protects the personal assets of an investor. It also protects any unrelated investment assets. Eg, if you have 20 houses, in say 5 different LLCs, and someone sues, they can only sue *that* specific LLC … the other investments are safe.
Also, the way Wyoming and Nevada laws are written, the way compensation can be accessed is more difficult for the complainant, and protects you that way too.
Hi Marthamel,
As far as you know, is Nevada and/or Wyoming the best place for setting up an LLC for an individual (as opposed to multiple shareholders)?
Cheers,
THTreasure Hunter wrote:Marthamel wrote:JamesAlso, the way Wyoming and Nevada laws are written, the way compensation can be accessed is more difficult for the complainant, and protects you that way too.
Hi Marthamel, As far as you know, is Nevada and/or Wyoming the best place for setting up an LLC for an individual (as opposed to multiple shareholders)? Cheers, TH
Guys,
We set up our Holding LLC in Wyoming as the on-going fees were slightly less based on the recommendations from the US advice we received. After setting up the Holding LLC and receiving an EIN (US IRS Employer Identification Number) we were then able to open a US bank account.
Currently we have "closed" on one property and in the process of another state by purchasing via another Property Owning LLC registered in the same state as the property that is then owned by the Holding LLC (WY) as a single "manager". We believe each Property Owning LLC will require its own EIN and bank account that will then pass back to the Holding LLC for total income reporting.
I have current concerns about the taxation complexities but you can opt to have your reporting date the same as our Australian taxation of June 30 and all LLC reporting is "pass-through" for both US and Australian taxation.
Various US attorneys are able to set up both the LLC and the associated bank account for around $700, lots of emails and scanned in ID to satisfy the individual state LLC formation requirements PLUS the IRS identification.
No IRS EIN equals NO bank account for the LLC
Marthamel, Would you be able to share the details of your attorneys with me as well. Thanks.
My email is [email protected].
TassieJH wrote:Treasure Hunter wrote:Marthamel wrote:JamesAlso, the way Wyoming and Nevada laws are written, the way compensation can be accessed is more difficult for the complainant, and protects you that way too.
Hi Marthamel, As far as you know, is Nevada and/or Wyoming the best place for setting up an LLC for an individual (as opposed to multiple shareholders)? Cheers, TH
Guys,
We set up our Holding LLC in Wyoming as the on-going fees were slightly less based on the recommendations from the US advice we received. After setting up the Holding LLC and receiving an EIN (US IRS Employer Identification Number) we were then able to open a US bank account.
Currently we have "closed" on one property and in the process of another state by purchasing via another Property Owning LLC registered in the same state as the property that is then owned by the Holding LLC (WY) as a single "manager". We believe each Property Owning LLC will require its own EIN and bank account that will then pass back to the Holding LLC for total income reporting.
I have current concerns about the taxation complexities but you can opt to have your reporting date the same as our Australian taxation of June 30 and all LLC reporting is "pass-through" for both US and Australian taxation.
Various US attorneys are able to set up both the LLC and the associated bank account for around $700, lots of emails and scanned in ID to satisfy the individual state LLC formation requirements PLUS the IRS identification.
No IRS EIN equals NO bank account for the LLCso say i buy a property in Vegas, get a Nevada LLC.. 2 years later I decide to get one in New York in which i put into a NY LLC, can i then get a holding LLC to group all my LLC's?
[/quote]
so say i buy a property in Vegas, get a Nevada LLC.. 2 years later I decide to get one in New York in which i put into a NY LLC, can i then get a holding LLC to group all my LLC's?
[/quote]White-Goodman,
You can change the membership of the LLC from being yourself and other "people" to being another legal entity such as another LLC or a C-Corp at any time (owned by a single member or multiple members / managers and or an Australian Trust).
Mr X Mr X
Las Vegas LLC (NV) Manhattan LLC (NY) Membership in both property owning LLCs "sold" for nominal fee to My US Property LLC (WY)Mr X or X Family Trust or X US Property C-Corp
My US Property LLC (WY)
Las Vegas LLC (NV) Manhattan LLC (NY)
I created a nicer image that I drew that I could not load up on the forum
This is a separate legal change to changing the actual ownership of Real Property as the title deed is not changing hands– the legal property owner is still the Nevada LLC for the Vegas property and NY LLC for your Manhattan apartment
.The benefit we see here for Aussie investors is that we are not slugged the Australian State Stamp duty triggered by the title change.
This will have IRS taxation reporting requirements that we are all attempting to get our heads around and as usual – consult your local financial/ legal US/Aus expert for further advice…
Interesting views and thoughts posted here. However, I’m searching for professional advice on purchasing property in a ‘tourist’ region in Nevada and using the property for more than 14 days per year. I am a cash buyer (and own my own home in Aus) but don’t have a taxable income in Australia because I am a full-time student (a mature one, with cash). Also, I want to manage the USA property myself (rent on-line) outside of the time I plan to use it. Complex …do I purchase in my own name or obtain an LLC.
Waht I’m interested in is the ‘capital gain’ hopefully obtained within 10 years (and the predicated exchange rate return of 70-80c in the $). Advice or referral from anyone, appreciated. I’ve hit a brick wall and would like to deal with Oz accountants & legalities, as the processes appear complex due to the international differences of taxation and property laws including death and capital gain etc…
Referal and/or advice from anyone would be greatly appreciated. My email is [email protected] …thanks.
Membership in both property owning LLCs "sold" for nominal fee to
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