Setting up LLC on H1B visa for rental properties

[Ratna E.]

Hello BP,

I've been following BP for over a month now and I have gained decent knowledge. I thank each and every member of this community for their posts and information. I'm on H1B visa and wondering if anyone from this forum has opened an LLC for managing their rental properties. I know this is a question to a immigration attorney but I would like to know if there is anyone who has done it or doing it so that I can get some guidance going forward.

Also, Is it a good idea to open an LLC if the no of properties I own is less than 4?

Thanks,

Ratna

[Antoine Martel]

Yes. It is a good decision to hold your properties in the name of the LLC.

[Ratna E.]

@Antoine Martel Any idea about the expenses that are extra if I hold my properties in the name of LLC? Thanks

[Antoine Martel]

Originally posted by @Ratna E.:

@Antoine Martel Any idea about the expenses that are extra if I hold my properties in the name of LLC? Thanks

Nothing besides the LLC costs. Which if you do it in Wyoming the costs for the LLC are minimal.

[Ratna E.]

Thank you! @Antoine Martel

[Chela O'Connor]

@Ratna E. - First, you should speak to an immigration attorney about the H1B Visa and creating an LLC. The costs for using an LLC depends on a few things. Are you financing the the properties? (If you do, the terms of financing may be costlier than financing as an individual) With an LLC you will have annual filing fees (usually minimal) and perhaps any costs associated with having a registered agent if you move.

So, ask yourself what is your goal in putting them in an LLC? Then seek expert advice on how to address Those concerns.  Good Luck! and I hope to see you at one of the upcoming meetups in Madison.

[Ratna E.]

@Chela O'Connor Thank you! I will look forward to meeting you at the next meetup in Madison.

[Daniel Wang]

@Ratna E. I'm not an immigration attorney, but my understanding is that you can only passively manage your LLC under H1B visa, and the definition of 'Passive' is kind of a grey area. So you will have to weigh the importance of maintaining legal status and potential savings you may get out of a LLC. I would personally prefer to play it safe, especially when you do not have a large number of properties.

[Isan Sahoo]

Hi Ratana,

I’m new to short term rental area and I’m also on H1b visa. I wanted to know, is it legal for H1b visa holders to do Airbnb and vrbo? If yes, what steps you took?

Thanks in advance!

[Casey Valbuena]

Quote from @Isan Sahoo:

Hi Ratana,

I’m new to short term rental area and I’m also on H1b visa. I wanted to know, is it legal for H1b visa holders to do Airbnb and vrbo? If yes, what steps you took?

Thanks in advance!

Hi, 

I am currently on H1b visa too. Since we cannot earn active income but can build an LLC, you must have people work for your airbnb (ie. property manager) for it to be considered as passive income; that you are just the owner and investor. This is just based on my own research, I haven't done it myself. Make sure to consult your immigration lawyer before proceeding. Good luck, I will be happy to hear from you if you proceed with your plans! 

Casey

[Shuvrajit Mukherjee]

Quote from @Casey Valbuena:

Quote from @Isan Sahoo:

Hi Ratana,

I’m new to short term rental area and I’m also on H1b visa. I wanted to know, is it legal for H1b visa holders to do Airbnb and vrbo? If yes, what steps you took?

Thanks in advance!

Hi, 

I am currently on H1b visa too. Since we cannot earn active income but can build an LLC, you must have people work for your airbnb (ie. property manager) for it to be considered as passive income; that you are just the owner and investor. This is just based on my own research, I haven't done it myself. Make sure to consult your immigration lawyer before proceeding. Good luck, I will be happy to hear from you if you proceed with your plans! 

Casey

I just started on my first STR. I am on H1b. And yes, it has to be managed by a PM.

[Casey Valbuena]

@Shuvrajit Mukherjee congratulations! Can I ask you a few questions? Sent you a connection request. Thank you

[Carlos Ptriawan]

Quote from @Isan Sahoo:

Hi Ratana,

I’m new to short term rental area and I’m also on H1b visa. I wanted to know, is it legal for H1b visa holders to do Airbnb and vrbo? If yes, what steps you took?

Thanks in advance!

 yes it's legal because the income is not on ordinary income but on passive income in IRS eyes, they would not check anyway.

[Carlos Ptriawan]

Quote from @Ratna E.:

Hello BP,

I've been following BP for over a month now and I have gained decent knowledge. I thank each and every member of this community for their posts and information. I'm on H1B visa and wondering if anyone from this forum has opened an LLC for managing their rental properties. I know this is a question to a immigration attorney but I would like to know if there is anyone who has done it or doing it so that I can get some guidance going forward.

Also, Is it a good idea to open an LLC if the no of properties I own is less than 4?

Thanks,

Ratna

 what everyone mistake is some people is stuck in h1b for decades and they are too afraid to buy primary home, or to buy rental in US or even to apply mortgage which at the end, makes them losing the biggest opportunity to make money in real estate.

In reality it doesn't really matter as income from cash flow is a passive investment, you could do even flipping business while on h1 as the profit is from buy and sell activity. 

To be honest the profit from real estate sometimes way higher than the salary while you're on your 'stuck company' during h1/greencard process.

[Shuvrajit Mukherjee]

Quote from @Casey Valbuena:

@Shuvrajit Mukherjee congratulations! Can I ask you a few questions? Sent you a connection request. Thank you

 Yes, for sure

[Maddy NA]

Quote from @Shuvrajit Mukherjee:

Quote from @Casey Valbuena:

Quote from @Isan Sahoo:

Hi Ratana,

I’m new to short term rental area and I’m also on H1b visa. I wanted to know, is it legal for H1b visa holders to do Airbnb and vrbo? If yes, what steps you took?

Thanks in advance!

Hi, 

I am currently on H1b visa too. Since we cannot earn active income but can build an LLC, you must have people work for your airbnb (ie. property manager) for it to be considered as passive income; that you are just the owner and investor. This is just based on my own research, I haven't done it myself. Make sure to consult your immigration lawyer before proceeding. Good luck, I will be happy to hear from you if you proceed with your plans! 

Casey

I just started on my first STR. I am on H1b. And yes, it has to be managed by a PM.

 Congrats Shuvrajit. I would like to connect as a new short term rental investor, I could use some clarification. Thanks