DBA (Doing Business As)
A fictitious name (or assumed name, trade name or DBA name) is a business name that is different from your personal name, the names of your partners or the officially registered name of your LLC or corporation. It’s important to note that when you form a business, the legal name of the business defaults to […]
Comparison of Ownership Methods for Investment in U.S. Real Estate by Non-Residents
Listed below is a brief comparison of possible ownership methods for investment in U.S. real estate available for non-resident owners of U.S. rental property. The determination of how to structure the ownership of U.S. real estate can be complex when non-residents are involved. There are advantages and disadvantages to each approach and no single approach […]
Foreign Corporation
Federal and state returns are filed annually for the Foreign Corporation to report income received from sources within the U.S.. Income that is “effectively connected” with the business in the U.S., including income from gain, is taxed at regular corporation income tax rates which vary from 15% – 35%. State and local taxes and rules […]
Limited Partnership (LP)
An Limited Partnership (LP) has at least one general partner and at least one limited partner. The general partner has the same role as in a general partnership; controlling the company’s day-to-day operations and being personally liable for business debts. The limited partners contribute financially to the business but have minimal control over business decisions […]
Limited Liability Partnership (LLP)
The Limited Liability Partnership (LLP) is a similar business structure as an LP but it has no general partners. All of the owners of an LLP have limited personal liability for business debts. A tax return is filed for the partnership AND for each partner with the more beneficial individual income and capital gain tax […]
Limited Liability Company (LLC)
An individual investor taking ownership of U.S. property via an LLC limits their exposure to liability and is considered a disregarded entity for tax filing purposes. The non-resident investor files an individual U.S. income tax return, Form 1040NR. Income and capital gain is taxed at the more beneficial individual income tax rates. There are disadvantages: […]
Florida Department of State – Annual Report
A Florida annual report must be filed each year for a business entity to maintain an “active status” with the Florida Department of State. The annual report is not a financial statement, the report is used to update or confirm the Department of State, Division of Corporations’ records. In Florida, the report is due by […]
Registered Agent & Registered Office
Florida Statutes dictate that each corporation, foreign corporation, or alien business organisation that owns real property located in Florida, that owns a mortgage on real property located in Florida, or that transacts business in Florida shall have and continuously maintain a Florida based office and registered agent. In addition; a foreign corporation that owns Florida […]
Florida Hotel License
Each property generating short term rental income (individual bookings of less than six months) must have a Florida Hotel License which is renewed annually. The application and renewal of this license is usually handled by your management company – we recommend that you request and retain a copy in your personal files. The Florida Department […]
Bureau of Economic Analysis
Reporting to the Bureau of Economic Analysis is required by foreign investors in U.S. business enterprises where a foreign person or foreign corporation owns a ten-percent-or-more voting interest (or the equivalent) are subject to reporting, including all ownership of real estate, improved and unimproved, other than for personal use. Reporting to the Bureau of Economic […]
Florida Sales & Use Tax – Rental Income
Sales & Use Taxes are payable on short term rental income (individual bookings of less than six months). Filed monthly to the Florida Department of Revenue (DOR), due by 1st of month; late filing penalties effective after 20th of month. In Florida, Sales and Use Tax is payable on all short term rental income, regardless […]
Florida Local Business Tax Receipt
Local Business Tax (previously Occupational License) is required by homeowners who rent their US property. Paid annually to the Tax Collectors Office (in the County where the rental property is located). A Local Business Tax Receipt or Occupational License is issued by the Tax Collector’s Office to all persons engaged in businesses located and/or operating […]