RealEstate offshore company structure?

[Pmpm267]

My buddy wants to own US rental real estate, what is the best offshore company structure? He is aware that US property can be bought by a foreign entity, he lives in St.Kitts and is from there. He is thinking of offshoring the bank account + the company structure. Any tips or advice? Also, will he need to pay any IRS tax or will the local property tax be the only tax he needs to pay?

 

[Kermit]

He will want to avoid triggering FIRPTA. Use a US LLC to own the home and have the US LLC owned by the foreign entity.

 

[Pmpm267]

He will want to avoid triggering FIRPTA. Use a US LLC to own the home and have the US LLC owned by the foreign entity.

Thanks, since he plans to own US rental Real Estate, how can he get ACH payments from his US rental clients? Are there any banks that will accept an offshore corp and still have ACH access? Also, does PNC bank in FL still allow BVI corps to open a bank account in the USA?

 

[Kermit]

Renters will pay the US LLC. Profits are paid from the US LLC to the offshore parent.

 

[Pmpm267]

Renters will pay the US LLC. Profits are paid from the US LLC to the offshore parent.

How will I collect the US LLC profit? Which bank? Can the offshore bank do that?

 

[Kermit]

US LLC bank account would wire to offshore entity bank account.

 

[Pmpm267]

US LLC bank account would wire to offshore entity bank account.

Thanks for the information, the issue here is that my buddy will need to open USA bank account, he will need an EIN number which he doesn't need. Correct me if I am wrong. Do you know of any USA bank account that will open a USA LLC account without an EIN?