The LLC is a disregarded entity for taxes, unless you elect some special tax treatment.

Hello BojanWelcome to BP, I am Canadian investor for US properties too.One thing that I will strongly advise any Canadian doing US investment is to set up their entity structure right.

I have a question regarding entity (LLC) formation between two partners when one of the partners is an active real estate agent.To give you some back story, myself and my partner split all marketing costs 50/50.

As a business owner, I'm well aware of the importance of protecting personal assets by creating a business entity.

They neatly sidestepped the issue, saying tenants cannot cause vandalism, it has to be an outside entity.

You will get a judgement against that person/entity for the amount.Getting anyone to pay is its own animal though.

I want to make sure that I select the right legal entity for my business.

However, if you do, you will probably need to set up some kind of entity that defines the ownership stake.

As long as you find those issues in that time, you should get your earnest money back by any legitimate entity.

In addition, it would not turn up properties held separately by different LLC's, Partnerships, or other legal entities that the person might own.