What Should Be Entity Of The Tax Lien Cert Tax Wise?
I am an investor not reside in US.
I am intested in investing in the tax lien cert.
How should I entity my tax lien?
I am planning to change hand every half a year.
Is it better to set it up as a S corp, C corp or LLC?
I will be the only owner and worker of the corp.
What is the best way to do it tax wise?
Can I have a corp even if I am not reside in the States and non US citizen?
Any help is appreciated.
[addsig]
... I am an investor not reside in US.
Are you a US or non-US tax payer?
Also, are tax certs/liens real property or treated like bond for taxation purposes?
I am a non-US tax payer?
I want to find out about how tax lien is considered in taxation too.
Interest income for a pay back or capital gains if receive tax deed and sell.
So you have any experience in investing in tax lien?
YOU SHOULD BE AWARE of the tax treatment of a lein that is foreclosed and becomes real property.
I would suggest you engage a tax atty/cpa familiar w/ offshore investor issues esp. if your going to do this alot.
googling "capital gains non resident" I got a ton of hits.
http://invest-faq.com/articles/tax-non-us-nat.html
Anyone can form an LLC, C or S-corp (even a foreigner) in any US state. There are some caveats, but you can hire a corporation service company to be your registered agent and to file with the appropriate secretary of state in that state. When you get your articles of incorporation filed with the secretary of state and recorded with the recorder of deeds in the county you pick as your home county, then you have to probably open a US bank account. That is when the bank rep will ask for your personal information - photo ID, etc. This is the anti-terrorism law. Once you have th e bank account, you can then operate the entity from anywhere in the world. You will have to comply with tax laws. If a C Corp (and in some cases LLC) the entity itself will have to pay taxes on the profits. If an S-Corp (or in some cases LLC) the entity passes through the taxes to the shareholders who then have to pay taxes directly. That is true for both state taxes (if applicable) and federal taxes.
Good luck!
I am a non-US tax payer?
I want to find out about how tax lien is considered in taxation too.
[addsig]
Register a US Corp in the state you are buying. Or registed your foreign corp in the state your are buying. You will be subject to federal and state taxes (regardless if the corp is a domestic US Corp or a foreign corp registered in that state). Contact an accounting firm in the state you are buying to obtain proper tax advice (CPA or enrolled agent) if you are unfamiliar with US and state tax laws.