Asset protection/general advice for Canadian investor on a visa

[Tuan Hoang]

Hi all,

I’ve been trying to read and learn as much as I can over the last 9-12mos or so, especially during this quarantine. I have invested on some crowdfunding websites and directly into syndications, however I am looking to try my hand at investing directly in some rental properties.

I am a Canadian on a TN Visa. For the past week I've been trying to figure out if I am allowed to start an LLC for asset protection and have gotten some conflicting answers from several different lawyers. I've also posted my question on a few immigration forums/fb groups but have yet to find a clear cut answer.

I have pieced together that I can form an LLC, however I cannot work or receive a salary from that LLC. Receiving passive rental income would not constitute work, however I am trying to determine whether everything else involved in REI would constitute "unauthorized employment", ie hiring property managers, contractors, and the rest of my team, marketing, etc.

I would love to hear back from any Canadian that is in the same situation as I am currently or anyone knowledgeable with these immigration issues.

I am a high income (in non covid times) health care provider. I have only graduated less than 3yrs ago, so although I don’t have a huge amount of assets, it’s still in the 6 figures.

My other question to everyone else is if the LLC is not possible, should I just pursue REI while ensuring that I have excellent insurance coverage + umbrella policy. Brandon had a video stating LLC is not necessary especially when starting out, but others affirm that it is a "must". Would having good insurance be sufficient for someone in my position or should I just consider continuing with more passive forms of REI like syndications/funds/crownfunds?