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Beginning Real Estate Investing. As It Will Be In The US And Canada. Need To Set Up LLP And LLC. We are unsure if C Corp is needed. We were referred by Jenna.
A similar situation to Megan who is seeing you.
Thxs
Hi Ken,
The recommended structure for Canadians to own US real estate is a Limited Partnership. The Limited Partnership will own the property, collect the rents, and pay for expenses.
There are two types of partners in a Limited Partnership setup:
1. Limited Partners - These are individual Canadian investors. The limited partners collectively own 99% of the Limited Partnership. The limited partners' risk is limited to their personal investment in the partnership. Their personal assets are protected.
2. General Partner - This is usually an American LLC that owns 1% of the Limited Partnership. The General Partner bears most of the risk.
Please see this brochure that I have prepared for further details.