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Starting an LLC as a Foreigner and FIRPTA

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Setting up an LLC as a foreigner has numerous factors to consider when it comes to filing taxes properly. Depending on your income whether it’s real estate or self-employed, a foreigner is subject to tax treaties. Tax treaties are beneficial for a foreign owner because it eliminates the risk of being double taxed by both countries. Another factor when owning an LLC is if you have a real estate property and you sell it, FIRPTA (Foreign Investment Real Property Tax Act) will withhold 10-15% of the gross proceeds of the sale. With FIRPTA, the U.S. can make sure the foreign taxpayer has paid the capital gains tax on the property before they receive the full proceeds. Learn more about setting up an LLC as a foreigner in the video below.

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