Hi friends Thank you very much for the excellent information here! I and 2 are friends who are married couple ...
Original publication date on the United States Real Estate Forum on Facebook:
2018-12-31T01:55:28+0000
Hi friends Thank you very much for the excellent information here!
Me and 2 friends who are a married couple are interested in buying a home in the US (in the order of 60K-80K).
We are going to share the purchase 50: 50.
Ie 50% for both, and 50% for me.
the question is:
How to register the property - in my name and the name of both or
On my name and on the name of one of them. Does anyone know economic considerations one way or the other?
Link to the original post in the United States Real Estate Forum on Facebook - working on a desktop computer
https://www.facebook.com/1885945295012997/posts/2204480556492801
The original responses to the post can be read at the bottom of the current post page on the site or in the link to a post on Facebook and of course you are invited to join the discussion
In Israel, they usually go according to the highest of the spouses, so it is important to look at tax considerations, especially abroad.
Hi Idan Narotzki
The benefits of LLC are the option of limiting liability and asset separation. That is, limiting liability is a legal divide that if there are claims it is against the company and not against you personally. Separating assets, ie if there are claims or losses then there is a partition that separates you from reaching your assets outside the company. The disadvantage of establishing an LLC in your case is high reporting costs. The LLC report costs several hundred dollars and also an annual report for each partner in the LLC will cost several hundred dollars. Therefore, what you can do for starters is either buy without an LLC or alternatively buy with an LLC and a single owner, and later when you purchase more assets you will change the ownership vehicle accordingly with more partners. This can be backed up by a legal agreement between you. Here is a comprehensive explanation I wrote on this topic:
https://nadlanir.co.il/llc-%D7%90%D7%A8%D7%A6%D7%95%D7… /
There is also a gray area to this subject, if you would like then contact me in detail and explain to you.
Yariv Golan
I agree with you in the world. Only when everyone is doing risk management will he tell himself, especially the average person, that if you can avoid claims, that's what we'll do.
Good morning, I see no reason in this case to establish LLC. This is your first property and setting up an LLC will put you in unnecessary expenses. Register the property on your first name.
There is no problem in registering 3 people on one property, the percentage distribution will be in an internal document between you.
If there is a fear of lawsuits, make sure to insure the property with third party insurance, this is called Liability, insurance of $ 300,000 is enough.
If at some point you increase your activity and purchase more assets I would consider opening an LLC.
For registration and tax reasons you should open llc together
You should consult the matter and hear what the consequences are for each of you and then decide.
Llc will also regulate the profit sharing agreement management etc. among you that should prepare company regulations
It is very important to think ahead - are you planning to buy more houses later !!!
If it's one and only house - I would not be in a hurry to list them all !!
There are many one-time expenses, very significant (opening ITIN for everyone, the cost of submitting annual reports to everyone in the US and in Israel - you will not have a profit at all)
It is quite possible to register on just one person and sign a contract with an attorney here in the country, know people who have done it.
If there is an intention to continue to develop in the long term, then definitely start a joint venture, that way every member of the company gets a $ 4000 exemption a year from profits and this greatly offsets the profit that tax payers have to pay.
I would sit, think, consult an expert (even someone from the forum, one-on-one) and then make a decision!
I have investors who are childhood friends and rely on each other so in their case one acquires and the other signed with him in the contract. This is a matter of tax considerations only.
Llc shared…
And for the mehadrin .. llc to everyone who owns the common llc…
Because in any case, it is likely that there will be another activity separately
Congratulations!
Pay percent in llc and everything is great. Consult an accountant who deals with America.
Where did you want to buy?
LLC with ownership percentages.
Write OA in a good and thorough manner with an attorney from the field.
If you want I sell
Why register the property only in your name?
What about tax considerations? What about the legal considerations?
In your place I would not want to start investing with the tricks of working in black (from your friends).
Put everything on paper, developed llc and get started working properly.