A Guide to Investments in Indian Real Estate

Non-U.S. citizens choose to buy US real estate for many different reasons and they will have a diverse selection of aims and goals. Many may wish to insure that processes are handled quickly, expeditiously and correctly as well as privately and in some instances with complete anonymity. Secondly, the matter of privacy in relation to your investment is very important. With the rise of the net, private information has become more and more public. Although perhaps you are necessary to reveal information for tax purposes, you are not required, and should not, disclose property ownership for all the world to see. One purpose for privacy is legitimate asset protection from questionable creditor claims or lawsuits. Generally, the less individuals, businesses or government agencies know about your private affairs, the better.

Reducing taxes on your own U.S. investments is also a significant consideration. When purchasing U.S. real-estate, one must consider whether property is income-producing and if that income is 'passive income' or income made by trade or business. Another concern, especially for older investors, is whether the investor is really a U.S. resident for estate tax purposes.

The goal of an LLC, Corporation or Limited Partnership is to create a shield of protection between you personally for any liability arising from the activities of the entity. LLCs offer greater structuring flexibility and better creditor protection than limited partnerships, and are usually preferred over corporations for holding smaller real estate properties. LLC's aren't at the mercy of the record-keeping formalities that corporations are.

If an investor uses a corporation or an LLC to put on real property, the entity will need to register with the California Secretary of State. In doing so, articles of incorporation or the statement of information become visible to the entire world, including the identity of the corporate officers and directors or the LLC manager.

An great example is the forming of a two-tier structure to simply help protect you by developing a California LLC to possess the real estate, and a Delaware LLC to behave while the manager of the California LLC. The huge benefits to using this two-tier structure are simple and effective but must one must be precise in implementation of the strategy.

In their state of Delaware, the name of the LLC manager is not required to be disclosed, subsequently, the only proprietary information which will appear on California form may be the name of the Delaware LLC as the manager. Great care is exercised so your Delaware LLC isn't deemed to be doing business in California and this perfectly legal technical loophole is one of numerous great tools for acquiring Real Estate with minimal Tax and other liability. Tembusu Grand