When the goal is to hold assets in the United States, the LLC is the most widely used vehicle. Limited Liability Companies (LLCs) blend corporations features, such as limited liability for their owners, with those of partnerships, such as operating as a pass-through, or tax-transparent, entity.
How it works
By default, an LLC is treated as a transparent entity: it isn’t taxed directly, which avoids double taxation. It needs at least one member and one manager, who can be individuals or legal entities, U.S. or foreign, and there are no restrictions on the assets that can be contributed.
Why choose it
LLCs offer great flexibility in how they are managed and run. Members can draft a customized operating agreement that sets out their roles, responsibilities, and how decisions are made, tailoring the LLC to their specific needs.
Among the states, Florida is usually the quickest and most affordable option, and it’s easier to open accounts or buy real estate there than with an LLC formed in Delaware, Wyoming, or Nevada.
What to keep in mind
An LLC requires a tax identification number (EIN), which many banks ask for when opening an account, plus an annual report. If the owners are foreign, it also requires filing Form 5472 with the IRS, which reports certain transactions the company carried out during each tax year.
Florida lists managers’ names in its public registry, whereas Delaware doesn’t require it. Even so, privacy can be strengthened by appointing an independent manager.
In addition, without a separate succession plan, probate and estate tax issues may arise. It’s an ideal structure for holding assets (real estate, investments, bank accounts), not for running a significant commercial business.
Incorporation
Once Compliance approval is granted, incorporation typically takes 7 to 9 business days.
Wondering whether an LLC is the right structure for your situation? Fill out the form at the bottom of this page and our team will get in touch.