All Forum Posts by: Joshua Davies

Jonny Morris there are lenders out there that will allow the transfer of title from personal name to LLC upon closing. They will approve you for the loan in your personal name and then allow the transfer when you close. I simply asked for lenders approval on this and let them know that I would still personally guarantee the loan and that I was doing this strictly for asset protection and they were fine with that. Even if you can’t get approval for it through your lender, I have never heard of a lender actually calling the loan due. It is extremely rare, especially as interest rates are still so low. I guess it all depends whether you are willing to take he chance - a lot of investors do.

Basit Siddiqi thanks for sending! That was a good read. In the situation that we elect to be taxed on a net basis like this, how are the distributions processed? Would the foreign investors then be taxed again on this?

Basit Siddiqi And how do we elect the ECI option? Is that done at the time of LLC set up? With deductions and depreciation, I would expect the net income to be $0.

Basit Siddiqi tag isn’t working.

Basit Siddiqi thanks for your response. In this case we would have to withhold 35%? I am looking for a way for us to elect to be taxed on a net basis, that way the partners file a US tax return, but as we would have a passive loss on paper there would be nothing to tax. Do you know what our options are for this? Thanks!

Simon Chan I am in Yorba Linda. I am a newbie to the REI world here in the US but would love to chat over coffee!

@Jay Patadia that's what I thought, however I had somebody tell me that the tax would be on the gross rents which did not make sense to me. 

@Jay Patadia sorry, forgot to tag. 

@Brandon Hall I would love to hear your opinion on this too, I enjoy reading your posts as they all always very informative. Thanks!

So I guess my question is, is there a way we can set up another LLC that provides services to my other LLC to become engaged in a US business and reduce tax that way? I am just curious of the options we have as 35% is a lot of money to pay in taxes! Thanks!