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Start a U.S. property company

Buy U.S. property through an LLC.Manage it from anywhere.

Our office forms the U.S. company that holds your rental property in any state, gets the EIN and ITIN, files Form 5472 and the yearly U.S. returns, and keeps the books, while our agency quotes landlord coverage.

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Reviewed by Orkun Ozkaymak, CPA, MBAClients in all 50 states and abroad

$500company setup, EIN included
50 + DCstates we form companies in
1 officeformation, taxes and insurance
2011preparing taxes since
Step by step

How to buy U.S. rental property as a foreign investor

  1. 1

    Form the company and get an EIN

    Our office forms your LLC or corporation, usually in the state where the property sits, and gets the EIN on Form SS-4 without an SSN. The right structure depends on your home country and plans.

  2. 2

    Apply for an ITIN

    Foreign owners usually need an ITIN to file U.S. returns and claim refunds. Our office prepares Form W-7, often with your first tax return.

  3. 3

    Buy and insure the property

    Close the purchase in the company name and open a U.S. bank account for rents. Our agency quotes landlord or dwelling coverage and an umbrella policy in the company name.

  4. 4

    Elect to be taxed on net rental income

    Without an election, U.S. rents paid to a foreign owner face 30% withholding on the gross amount. Our office files the net income election so tax applies after expenses and depreciation.

  5. 5

    File Form 5472 and yearly returns

    Our office files Form 5472, Form 1040-NR or Form 1120, and the state return where the property sits each year, and plans for FIRPTA withholding when you sell.

Filings and prices

What our office files for you.Prices shown before you send.

Pick what you need on the request form. Ozfield's fees are shown here; government fees are passed through at cost.

  • Form 5472 for foreign-owned companiesYearly, filed with the company return.
    $750 per year
Company setup is $500 plus the state fee, EIN included.
The request form adds your filings and shows the full estimate as you go.
Build my estimate
Insurance from the same office

Coverage in place on day one.Quoted by our agency.

Check the coverage you want on the request form and our insurance team sends quotes from multiple carriers. Nothing is bound without your OK.

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  • Landlord (dwelling fire)
  • Umbrella
After you open

The filings that come every year.

Our office keeps these on your calendar so nothing is missed. How we work with international property investors →

Form 5472 with pro forma 1120

April 15. For foreign-owned single-member LLCs, extendable to October 15.

Form 1040-NR

June 15. For nonresident owners without U.S. wages, with Schedule E.

Forms 1042 and 1042-S

March 15. Filed by the withholding agent when tax is withheld on rent.

Form 8288

Within 20 days of a sale. FIRPTA withholding reported and paid by the buyer.

Questions

What new owners ask us.

Something else on your mind? Call 773-536-9272 and our office will help, in English or Turkish.

Can a foreigner buy U.S. property through an LLC?
Yes. Foreign investors can own U.S. real estate directly or through a U.S. LLC or corporation. A company can limit liability and keep rental records separate. The best structure depends on your home country tax rules, estate tax exposure and exit plans. Our office forms the company and gets the EIN, and coordinates with your home country advisor.
How is rental income taxed for a foreign owner?
By default, gross U.S. rents paid to a foreign person face 30% withholding. Most investors elect to treat rental income as connected to a U.S. business, so tax applies only to net income after expenses and depreciation. That requires filing a U.S. return each year, and usually a state return too. Our office makes the election and prepares the returns.
What is FIRPTA withholding when I sell?
When a foreign person sells U.S. real estate, the buyer generally must withhold 15% of the sale price under FIRPTA and send it to the IRS. You then file a return to report the actual gain and claim back any excess. A withholding certificate can lower the amount. Our office plans for the sale and files the return.
Do I need an ITIN to own U.S. rental property?
You can form the company and get its EIN without an ITIN. You usually need an ITIN to file your personal U.S. return, claim refunds of withheld tax, or file the 1040-NR that reports rental income. Our office prepares Form W-7 for each owner, usually with the first tax return.

Ready to start your U.S. property company?

Answer a few questions, see your estimate and send it to our office.

Start my U.S. property company773-536-9272