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Hi, I am a foreigner and I wish to do an application for certificated

of business registration in real...
Hi, I am a foreigner and I wish to do an application for certificated of business registration in real estate, tax deed/tax lien investment in USA. Can you advise if registering as sole proprietor or LLC/LLP is better for me in terms of tax gain etc. If I register in one state, can I invest in the other States ? I do hope to get detailed advices as a foreign investor from your expertise in what"s best for me. Thank you
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Answered in 9 minutes by:
10/29/2012
Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16,581
Experience: Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.

It's best to register as an LLC and elect corporate taxation. You will file an

Your tax liability will be the same under an LLC and sole proprietorship. You can do business in multiple states - that's fine.

** Please take a moment to rate my response as "Excellent" so that I may be compensated for assisting you today. Please let me know if my assistance was anything less than "OK Service", as I am compensated based on whether or not I have assisted you with your issue. If you need further clarifications, PLEASE WAIT TO RATE MY ANSWER UNTIL AFTER RECEIVING FOLLOW UP FROM ME. If I receive anything less than OK Service, I do not get paid, but the Web site will still collect your payment. Thank you for your kind understanding in this matter. If you have difficulties rating, then simply respond stating that you are having difficulties rating and thank me for my excellent, good, or ok service and we can get the rating applied by the site**

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Customer reply replied 5 years ago

Hi thank you for your prompt reply. May i know what elect corporation taxation is ? Is it correct that different states have different taxes ? if this the case, then which State would be more beneficial for me ? Your answer was not completed after you will file an......

 

Thank you

Nevermind, i meant to delete that sentance. You will file a 1040NR.

You could elect corporate taxation for an LLC, but for a foreigner that won't save you any funds. It would be simpler because you'd only file one tax return per year, but you would still be subject to the 30% withholding rate.

There are several states without personal income tax, but you would be a business and therefore subject to tax. There's not one state that just stands out as being the best bet (if that were the case, everyone in the US would incorporate in that one state.)

** Please take a moment to rate my response as "Excellent" so that I may be compensated for assisting you today. Please let me know if my assistance was anything less than "OK Service", as I am compensated based on whether or not I have assisted you with your issue. If you need further clarifications, PLEASE WAIT TO RATE MY ANSWER UNTIL AFTER RECEIVING FOLLOW UP FROM ME. If I receive anything less than OK Service, I do not get paid, but the Web site will still collect your payment. Thank you for your kind understanding in this matter. If you have difficulties rating, then simply respond stating that you are having difficulties rating and thank me for my excellent, good, or ok service and we can get the rating applied by the site**

Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16,581
Experience: Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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