Need to setup an American corporation for a Canadian couple

[billsmith123]

We are very interested in investing in real estate in the southern states. We are Canadian and live in Canada full time. We will from time to time go to the southern states to check out property and possibly to set up contractors. There is also potential that we will end up renting out these properties for a period of time before selling.

I now have three different opinions as to how to structure a company. C-Corp, LLC and LLP. So at this point I am a little confused.

I have to pay my earned income from my Job to the Canadian government, and I have no problem paying my business income (from income earned in the USA) to the US government. I just want to make sure that I have a company structured correctly so that I am not paying double taxes and so that I don't have to file a personal tax return in the USA (as I understand that American income tax requires the individual to state their "world" income and has a greater chance of double taxing).

One company told me that the best way to set this up is to have an LLP consisting of my wife and I, and our Canadian corporation (who cannot hold more than 49%). They said that we could then charge management fees from the Canadian corporation to the American LLP and thereby reduce some American taxes. The individual also said that if we plan on acquiring many properties, then we should ideally hold the properties in an LLC (perhaps even one per state) with the single owner of the LLC being the LLP.

This sounds expensive, but I am really looking for the asset protection. I have $250K in cash in my Canadian Corporation, I just want to make sure that the US government doesn't ever try to assess an estate tax on my Canadian money.

Any help would be greatly appreciated and I am not an accountant or a lawyer, just a small businessman.

 

[cbg]

This is not a do it yourself project and is far beyond the scope of a message board. You need an attorney.

 

[army judge]

We are very interested in investing in real estate in the southern states. We are Canadian and live in Canada full time. We will from time to time go to the southern states to check out property and possibly to set up contractors. There is also potential that we will end up renting out these properties for a period of time before selling.

I now have three different opinions as to how to structure a company. C-Corp, LLC and LLP. So at this point I am a little confused.

I have to pay my earned income from my Job to the Canadian government, and I have no problem paying my business income (from income earned in the USA) to the US government. I just want to make sure that I have a company structured correctly so that I am not paying double taxes and so that I don't have to file a personal tax return in the USA (as I understand that American income tax requires the individual to state their "world" income and has a greater chance of double taxing).

One company told me that the best way to set this up is to have an LLP consisting of my wife and I, and our Canadian corporation (who cannot hold more than 49%). They said that we could then charge management fees from the Canadian corporation to the American LLP and thereby reduce some American taxes. The individual also said that if we plan on acquiring many properties, then we should ideally hold the properties in an LLC (perhaps even one per state) with the single owner of the LLC being the LLP.

This sounds expensive, but I am really looking for the asset protection. I have $250K in cash in my Canadian Corporation, I just want to make sure that the US government doesn't ever try to assess an estate tax on my Canadian money.

Any help would be greatly appreciated and I am not an accountant or a lawyer, just a small businessman.

The US taxing authorities are among the greediest on the planet.
They have an insatiable hunger for the wealth of hard working citizens.
They will even take money from the dead or dying.
That said, there's no way to bullet proof your money, or to guarantee you the greedy tax zombies won't confiscate it from you.
If I were you I'd avoid investing my money in the USA, when there are at dozens of far more investor friendly countries on the planet, depending on yoru age and the amount of money you want to work with, start searching the internet.
Good luck, and before you invest one dollar, do your due diligence.
People and countries will promise you everything and rob you blind.