Help deciding between LLC or Individual's name for foreign investor

[Mark Rosser]

Hi everyone,

I am a foreign investor (from Australia) looking at purchasing some properties in Las Vegas next month. I have been doing some research and I am finding it very hard decide on whether or not to use an LLC? If anyone can help to clarify a few points that would be much appreciated:

-Inheritance Tax
I am worried about inheritance tax if I use my personal name for investing. I will have to borrow the money locally against my properties here, as finance does not seem to be possible over there for foreign investors at the moment. If I borrow $200 000 to buy property of same value in the USA, and i die - will title automatically pass to my wife here - or will inheritance tax apply (if so what level)? It would be terrible to leave my wife with a tax for assets that have been 100% funded by debt here - but would effectively be paid for by cash in the USA. The reason for buying in my name only is that I have no assets here - so If my umbrella insurance was not enough to cover any litigation, I would have no assets to go after, all our assets are in local companies or my wifes name.

-Finance for LLC's
I understand that it is not really possible for LLC's to get finance, but it may be possible in the near future to refinance any cash purchase properties I aquire in my personal name. So an option is to transfer properties from an LLC into my personal name to get finance, and then back into an LLC. My understanding is that it costs nothing or very little to transfer a property purchased in an individuals name into an LLC, but what are the costs and implications of transferring from an LLC to an individuals name. I am considering Delaware or Nevada as the location for my LLC.

Im not so concerned about the asset protection the LLC provides, as as far as I can see a good umbrella policy will be sufficient, but more so any potential tax implications that not using an LLC would expose me to. Aswell as issues in getting finance in the future - as Id like to get some cash out to re-invest in more properties in the near future.