FREQUENTLY ASKED QUESTIONS
¿Why is it important to legally incorporate as a corporation in the US?
PERSONAL ASSET PROTECTION
Debts or lawsuits only apply to the company and do not extend to your personal assets. Likewise, personal debts or lawsuits inside or outside the U.S. do not affect the company's assets. This separation ensures that your capital is protected.
CREDIBILITY AND TRUST
Registering legally makes you eligible to work with clients, banks, and investors. Additionally, having a corporate identity presents you as a professional.
TAX BENEFITS
You can deduct business expenses to reduce your tax burden, while maintaining balance. It's recommended that your taxes also reflect your income to present yourself as a solid and profitable company to the financial system.
EASE OF CONTRACTING AND OPENING BANK ACCOUNTS
Many companies only work with registered businesses, and the banking sector only opens business accounts for companies created in the U.S., by presenting the EIN, company articles, and a passport or valid ID.
LEGAL AND FINANCIAL SEPARATION
Your personal finances are not mixed with the company's, which is essential for organization and accountability.
¿Who needs to obtain an ITIN?
WHO CAN APPLY
Individuals who earn income in the U.S., but cannot obtain an SSN (Social Security Number).
Foreign investors in real estate or businesses.
Individuals who receive rents, dividends, or income for services in the U.S.
Members of an LLC who do not live in the U.S., but have a stake in it.
¿Why is it necessary to create an ITIN as an individual when investing in the US?
FILING TAXES
You must file taxes in the U.S., even if you don't live there.
INTERNATIONAL TAX BENEFITS
You want to claim tax benefits allowed by international treaties.
AVOID EXCESSIVE WITHHOLDINGS
To avoid excessive withholdings from the IRS, such as the case with foreign investors when they invest as individuals and have up to 30% of their profits withheld.
INVEST LEGALLY
To legally invest in properties, stocks, or open accounts in some banks.
FOREIGN MEMBER IN LLC
To be part of a business as a foreign member of an LLC in Florida.
¿What documents do I need to submit to create an ITIN in the US, and how long does it take?
REQUIRED DOCUMENTATION
To apply for an ITIN, you must provide proof of your identity and foreign status, such as a passport.
A second photo ID is also required.
You must submit Form W-7 along with your tax return or documentation that justifies the need for an ITIN.
The IRS typically takes between 7 and 11 weeks to process the application. If something is missing or there are errors, the IRS returns the application, and the process may be delayed by additional months.
The IRS sends it by mail, and the process is slower. If it is urgently needed, you can go to a certified IRS agent or an IRS Taxpayer Assistance Center.
¿What is the purpose of creating bylaws in a corporation?
IMPORTANCE OF THE OPERATING AGREEMENT
Define roles and powers: You establish the roles of partners, managers, or directors. Rules for meetings, contributions, and responsibilities. Determine who can make decisions, who is authorized to sign contracts, how profits will be distributed, etc.
Avoid conflicts: It sets clear rules when there is more than one owner to prevent disagreements. It anticipates situations such as what happens if a partner passes away or withdraws.
Meet legal and banking requirements: The most transparent approach is to bank all transactions, and it is essential to determine who has authorization and responsibility for banking transactions.
Legal and tax protection: It separates the owners from the business, which is a requirement to limit legal liability and protect personal assets.
¿Is it necessary to open a bank account in the US?
IMPORTANCE OF A BANK ACCOUNT
Once your business is legally established, opening a business account is necessary, as all transactions you make must be banked and transparently recorded for proper accounting of your company. When filing taxes, everything must be in order. Cash payments are not common; the most common payment methods are checks or virtual (Wire Transfer, payments charged to debit or credit cards for events or scheduled payments, and Zell).
What is the process for opening a business bank account? Business account openings are done in person. We schedule the appointment for you, accompany you to complete the account application, unlike personal accounts, which can be opened virtually through the bank's website.
¿Depending on the bank, what does status mean?
Legal status of the company: whether it is created as an LLC, C-Corp, S-Corp, Sole Proprietorship, or Partnership.
Immigration or personal status of the owner: Whether they are a resident, citizen, or foreigner. Whether you have an SSN, ITIN, or just a foreign passport.
Tax status of the company: Whether it has an EIN, and if it is active and in good standing with the Florida Division of Corporations (Sunbiz).
¿What should I consider before choosing an American bank?
The choice of the banking institution will depend on the legal status and registration of the company or the individual it represents. For foreign investors, CitiBank is highly recommended due to its conditions, as it is a top-tier international bank. Resident and Citizen investors have more options and can choose from well-known commercial banks such as Bank of America, CitiBank, Wells Fargo, Chanse (JPMorgan Chase Bank), Truist Bank (a merger of BB&T + SunTrust), PNC Bank, and regional second-tier banks like Regions Bank, TD Bank, Fifth Third Bank, Citi National Bank of Florida. These are excellent alternatives, each with a service profile based on legal status, requirements, and different conditions. It is very important to consider the balances you will maintain on average, as this will determine the portfolio and financial costs that best suit you.
¿How do I transfer the money to make the investments?
To transfer your funds and move your capital from abroad to your new Business account, you will need to contact your local bank to make an international transfer, with the intermediary being the Central Bank or the applicable bank in your country. You can negotiate the exchange rate (TRM) with your bank for the transaction.
¿Who do I pay taxes to when I make an investment abroad?
Once the money is deposited in the U.S. banking system, you will no longer pay taxes in your home country, because this transaction will be recorded as a foreign investment. From that point onward, it will be taxed by the U.S. Federal Government (IRS - Internal Revenue Service). In other words, you will not face double taxation, and you can validate this with your local accountant.
¿Can I buy or sell a property from my country of residence without traveling to the US?
Virtual closings are becoming more common, but the most important thing is knowing if they are secure. These closings are carried out through title companies certified by the U.S. Government. They are independent and neutral, coordinating the entire process and preparing all the documents. It provides protection for both the buyer, guaranteeing the legality and documentation of the property, and the seller, ensuring the payment of their money according to the conditions previously agreed upon by both parties in a contract, which includes the agreement to conduct a virtual closing. It is optional for the buyer to choose the Title Company for added peace of mind.
¿What is the virtual closing process like?
A Remote Online Notarization (RON) registered and approved by the state of Florida is used, through platforms such as Notarize.com, NotaryCam, DocuSign Notary, Pavaso, among others.
The parties connect via video call, and the virtual notary verifies the identity of both the buyer and the seller, performing biometric facial and voice verification. The notary requires the physical presentation of the passport and license on camera, and asks verification questions, similar to bank or background checks. The live notary guides while the parties electronically sign, and the notary also signs and seals the documents digitally, sending a copy to the parties and submitting it to the county's public records.
¿What guarantees do the buyer and seller have regarding the handling of money by the Title Company?
The Title Company receives and holds the funds from the buyer or the bank providing the loan, which is known as Funding, in an escrow account. It verifies that the money is available and that all documents are signed, then records the property deed with the appropriate county. Once recorded and confirmed, the payment is transferred to the seller, which is known as Disbursement, usually via wire transfer or electronic transfer, or in some cases, with a cashier’s check. It also pays real estate agent commissions and other closing costs.
The seller receives the electronic transfer of funds on the same day or the next business day, depending on whether the documents have been recorded with the appropriate county.