Thanks Rick- that’s already very helpful.
We thought about a simple JV and may very well go this route, yet we did want to explore the possibilities of starting something more concrete or in your own words- more aggressive.
To answer your question Steven, we both have stable jobs at the moment and as such aren’t interested in generating income. It would be a ‘Buy to Let’ however our philosophy for this investment would be to reinvest any profits into the refurbishment and upkeep of the property and better our asset, whilst paying off amortization and interest. Of course, down the line this may change, but for the foreseeable future that’s how we intend to operate.
Under an LLC am I correct in understanding that you don’t get taxed on the profits that the company generates (and that we’d reinvested into the asset anyway) and only on cash that is extracted from the company as either salary/benefits or dividends? If so, how much of an effect would tax brackets and potential dividend extraction taxes have as opposed to simply being taxed on my share of the profits generated under a partnership? I guess what I’m trying to understand is would there be any double taxation involved in an LLC structure, bearing in mind again, that I myself am a foreign alien.