What entities can a foreigner own and do real investing in

General Real Estate Investing
1

Hello all.

I’m a canadian citizen living in Canada. I’m wondering if any of you know which entities that I–as a foreigner–am allowed to own?

I’m wondering if I were to flip houses in an entity (say an LLC) would that be considered illegally running a business for me? i.e. foreigners typically need some kind of visa to do business.

Would the scenario differ if I had an american partner who also owned the LLC?

Thank

HJ

2

yes

An alien individual may conduct his or her real estate business in the United States as an individual owner of real property, as a partner in a partnership, as a member of a limited liability company or as a shareholder of a corporation either foreign or domestic.

3

If I wanted to set up a multinational company e.g. say a company headquartered in the US but has a satellite\affiliate office in Canada, can I use any entity or does it have to be a specific type, say a C-corp?

I’ve also been told I cannot own an S-corp because I do not have permanent residency in the US.

(i’m currently residing in Canada)

4

I don’t know what Canada’s laws on such an arrangment might be.

Yes, S-corp rules are funny sometimes.

5

Hi Mark-

Following your response, I was told by a commercial broker that in order for a foreigner to own real estate in the U.S., it has to be held in the form of a C corporation, is that true? If that is indeed the case, then the tax burden would be doubled?

thanks,
MeiLin

6

An alien individual may conduct his or her real estate business in the United States as an individual owner of real property, as a partner in a partnership, as a member of a limited liability company or as a shareholder of a corporation either foreign or domestic.

Just not an S-corp.