Create LLC USA: Protect your real estate investment

Creating an LLC in the USA has become an essential step for French real estate investors wishing to secure their assets in the United States. Whether for the purchase of building land, the ownership of rental property or a structured real estate project, this legal form offers protection, flexibility and tax efficiency in an often complex environment.

Thibaut Guéant, co-founder of LandQuire and a French-American expert based in Miami, has been assisting French-speaking investors since 2016 in establishing LLCs tailored to the specificities of the U.S. real estate market. Drawing on his dual expertise in legal and operational matters, he structures each transaction with rigor and a long-term vision.

At LandQuire, every investor is guided step by step to structure his or her investment through an efficient, tax-optimized LLC.

Why create a real estate LLC in the USA? Definition and legal framework

Forming a U.S. LLC (Limited Liability Company) is now one of the most common ways to protect real estate investments in the United States. This hybrid legal structure, widely used by both Americans and foreigners, combines tax flexibility, limited liability, and a professional structure. By 2025, more than 70% of real estate acquisitions by nonresident investors will be made through an LLC.

What exactly is an LLC?

An LLC is a partnership for tax purposes, but it offers the legal protection of a corporation. This means:

The investor’s personal assets are protected in the event of a dispute related to the real estate asset (unpaid rent, construction defects, etc.)
The structure can be owned by one or more partners, with considerable contractual freedom.
It can be treated for tax purposes as a “disregarded entity” (transparent) or as a corporate entity (IS type), depending on the investor’s objectives

This flexibility is attracting a growing number of French investors keen to professionalize their approach and anticipate tax issues.

LLC and real estate: a natural alliance

In real estate, investors in the United States use LLCs both as a safety net and as a tool for wealth transfer. This structure allows them to:

Group buying between members of a family or a circle of investors
Rental management via a dedicated bank account
Planned inheritance (company shares rather than undivided property)
Tax optimization through specific deductions (expenses, interest, depreciation)

Forming an LLC in the U.S. does not “complicate” an investment. On the contrary, it structures the investment to limit risks, clarify responsibilities, and maximize income.

5 good reasons to create an LLC USA for your real estate investment

More and more foreign investors—particularly those from France—are using the LLC as a strategic tool to secure their real estate acquisitions in the United States. Contrary to popular belief, this legal structure is not intended solely for large companies. Quite the opposite: it has now established itself as an essential solution for smoothly structuring an investment project. Here’s why.

1. Protect your personal assets

This is the number one reason for forming an LLC. In the event of a dispute, loss, or legal action, your personal assets are separate from the assets held by the company. If a tenant sues you or an accident occurs on the property, it is the LLC that is liable, not your primary residence or your personal bank account.

2. Simplify management and transmission

An LLC centralizes all operations related to an investment:

Opening a bank account
Signature of official documents
Receipt of rental income or capital gains
Payment of property taxes and insurance

It also facilitates the transfer of assets. Instead of transferring an undivided interest, one can transfer all or part of the ownership interests, with tax advantages.

3. Optimize taxation (notably through transparency)

An LLC in the U.S. can be treated as a “pass-through” entity for tax purposes. This means that:

The company's income is reported directly by the partners (no double taxation at the local level)
You can deduct a large portion of your expenses: maintenance, loan interest, legal fees, etc.
The management of capital gains is often more flexible than for a property held in its own name.

Good to know: This transparency is particularly useful for avoiding double taxation with France, thanks to the bilateral tax treaty.

4. Secure multiple investment

Buying with two, three or six people can be a legal headache. The LLC offers a turnkey solution:

Each partner holds a clear percentage of the shares
The Operating Agreement defines the rules governing exit, death and resale.
In the event of disagreement, everything is planned in advance

An LLC in the U.S. thus provides a framework for group or family purchases, helps avoid conflicts, and protects each participant.

5. Strengthen your banking and notary credibility

In the United States, real estate professionals, banks, insurers, and real estate agents view an LLC as a sign of a serious investor. This makes it easier to:

Negotiating with sellers (especially for land)
Opening a business bank account
Obtaining certain financing or insurance

Creating an LLC USA step by step: a guide for foreign investors

Forming an LLC in the U.S. isn’t rocket science—as long as you have the right guidance. For a nonresident investor (such as a French citizen looking to invest in U.S. real estate or land), there are a few specific steps to follow. Here is the complete process, illustrated by the support offered by LandQuire.

1. Select LLC creation state

All U.S. states allow LLC formation, but conditions vary:

Delaware: Popular for Startups but Not Very Useful for Real Estate
Texas or Florida: makes more sense if the property or land is located in those states

Here's a tip: Form the LLC in the state where the asset is located.

2. Appoint members and manager

An LLC can be :

Single-member: a single owner
Multi-member: two or more members (family, business partners, spouses, etc.)

A manager (often one of the members) must be appointed to make management decisions.

3. Drafting the Operating Agreement

This document serves as the legal foundation for your LLC. It defines:

Who owns what (shares, percentages)
How decisions are made
What happens in the event of a member's death, a disagreement, or a member's departure

At LandQuire, this document is drafted by specialized legal professionals in both French and English to avoid any ambiguity.

4. Obtain an EIN (tax number)

The Employer Identification Number is required for:

Open a bank account
Declaring tax income
Be recognized as an entity by the IRS (U.S. Internal Revenue Service)

A foreign investor can certainly obtain an EIN without being a U.S. tax resident.

5. Open a business bank account

This is the final key step. Once your LLC is formed, you’ll be able to open a dedicated bank account—often online—with a U.S. bank.

LandQuire offers comprehensive support in this area, working with banking partners who accept non-resident investors.

Land, real estate, leasing: when is it imperative to create an LLC?

Forming an LLC in the U.S. isn’t always required. But in many cases, it’s strongly recommended—or even essential—to protect your investment, optimize your tax situation, or prepare for the unexpected. Here are the main situations in which an LLC serves as a powerful tool for protection and performance.

1. You invest in land (bare land)

When you buy raw land, especially with several people or for speculative purposes:

An LLC allows for the formalization of the allocation of ownership interests among members
It protects members in the event of a resale, inheritance, or dispute
It makes it easier for an investor to enter or exit the investment without amending the property deed

At LandQuire, 100% of our projects are structured as LLCs to provide this secure framework for every investor.

2. Buying a rental property

In the case of a rental property (building, house, housing estate):

An LLC acts as a legal buffer in the event of a dispute with a tenant
It allows you to centralize revenue and expenses and simplifies management
In the event of a resale, you transfer the LLC shares rather than the property itself: this saves time and optimizes your tax situation

This is particularly useful if you own several properties in the United States.

3. You're investing in a group (family, friends, associates)

Investing as a group through an LLC in the U.S. is one of the best options for:

Equitable distribution of investments (even where amounts differ)
Plan for death, divorce, disagreement, change of strategy
Framing governance and decision-making (via the Operating Agreement)

Example: A group of four friends invests $400,000 in a LandQuire project. Through the LLC, each person owns exactly 25% of the project, with clearly defined rights and obligations.

4. You are considering resale or refinancing

If your goal is to resell the land or property at a profit in 2 to 5 years:

An LLC allows for more flexible resale (transfer of shares, no notarial deed required)
It centralizes the project's valuation, facilitating discussions with banks or potential buyers

Bonus: Some banks or private equity firms prefer to invest in an existing legal entity (LLC) rather than in an unencumbered asset held in an individual’s name.

Common mistakes to avoid when creating an LLC USA

Forming an LLC in the U.S. is a strategic move, but it’s important to avoid common pitfalls that could turn an asset into a source of complications. Here are the most common mistakes made by nonresident investors—and how to avoid them.

1. Choosing the wrong state to incorporate the LLC

Many investors mistakenly believe that it is more advantageous to form their LLC in Delaware or Nevada for tax reasons. In reality, if your land or real estate is located in Texas, Florida, or elsewhere, it is essential to form the LLC in that state to avoid:

Unnecessary foreign registration fees
Legal complications in the event of a dispute
Double local taxation

Simple rule: The LLC must be formed in the state where the asset is located.

2. Failing to draft a solid operating agreement

Some investors overlook this document, thinking it applies only to large companies. That’s a serious mistake: this agreement sets the ground rules for the relationship between the members—even in a single-member LLC.

Without a clear operating agreement:

Decisions may be contested
Shares can become contentious in the event of death or divorce
The tax authorities or a judge can requalify the structure

With LandQuire, every LLC comes with a custom Operating Agreement, drafted in English and translated into French.

3. Neglecting tax and administrative obligations

An LLC, even a passive one, must :

Filing an annual report in certain countries
Obtaining an EIN (Employer Identification Number)
Declaring income generated in the United States

Even if you do not reside in the U.S., you are required to report any income or capital gains through the LLC.

Tax advice is essential to ensure compliance, avoid fines, and optimize your cross-border tax situation.

4. Ignoring double taxation… or assuming it happens automatically

Some investors believe they will have to pay taxes in both the U.S. and France. In reality:

LLC revenues are taxed in the U.S.
Thanks to the Franco-American tax treaty, you are eligible for a tax credit in France

Please note: This applies only if the structure and the declaration are set up correctly.

Creating an LLC USA with LandQuire: tailor-made support

LandQuire has developed a turnkey solution to remove the barriers that still prevent many French-speaking investors from forming an LLC in the United States. Administrative complexity, language barriers, and unforeseen tax risks: these are all obstacles that we eliminate with a solution tailored to non-residents looking to invest in U.S. real estate.

A Franco-American team at your side

The LandQuire team combines :

U.S. legal expertise (LLC, local law, contracts)
Understanding French tax issues
Human support, in French, from A to Z

This allows each investor to:

To set up your business in less than 15 days
To obtain an EIN and a dedicated bank account
Electronically sign all documents
Remain compliant with French/US tax regulations

Projects designed to work with an LLC

At LandQuire, each investment project is structured as an SPV (Special Purpose Vehicle) through one or more dedicated LLCs. This offers:

Transparency Regarding Financial Flows
Clear traceability of rights and returns
A Solid Contractual Framework

“Each investor holds shares in an LLC tied to a specific real estate project. This prevents any dilution of liability or returns.” Thibaut Guéant, co-founder of LandQuire

An ideal solution for group purchasing

LandQuire also supports groups of investors (friends, family, associates) who wish to invest together via an LLC:

Clear definition of each party's role
Drafting an appropriate Operating Agreement
Setting up an exit, succession and resale schedule

Examples:

Three brothers invest in a piece of land in Texas through a joint LLC
A couple forms an LLC to buy and operate land leased to a mobile operator
Group of professional investors pools $250,000 for 36-acre land project

Frequently asked questions about creating an LLC USA

What are the tax implications of an LLC for a French investor? An LLC in the U.S. is generally treated as a tax-transparent entity (disregarded entity). This means that income is directly attributed to its members. As a French tax resident, you must report this income in the United States (using an IRS form) and then in France, where you’ll receive a tax credit under the France-U.S. tax treaty. You are therefore not subject to double taxation.

Is it possible to form an LLC without traveling to the United States? Yes, absolutely. With LandQuire’s assistance, everything can be done remotely:

Company registration in the adapted state
Assignment of an EIN (Employer Identification Number)
Opening a business bank account
Drafting of by-laws and electronic signature of documents

This solution is well-suited for remote investors.

Do you have to have multiple members to form an LLC? You can form an LLC on your own (single-member LLC) or with other investors (multi-member LLC). In either case, this structure protects your personal assets. When investing with others, you can clearly divide responsibilities, voting rights, and profits through a well-drafted Operating Agreement. The LLC remains one of the most flexible structures for securing a collective investment.

Forming a U.S. LLC: Key Points to Keep in Mind to Protect Your Investment

Many French-speaking investors are now choosing to form an LLC in the United States to effectively protect their real estate projects. This flexible structure allows them to enjoy significant legal, tax, and estate planning benefits, whether they invest on their own, with their family, or with business partners.

By structuring their LLC correctly, they protect their personal assets, anticipate succession, reduce their tax exposure and strengthen their credibility with banks, vendors and local authorities.

At LandQuire, we work with these investors every day to set up their tailor-made LLC, adapting each arrangement to their objectives, level of involvement and wealth horizon.

About the team

Thibaut Guéant, a Miami-based co-founder and real estate expert, oversees every legal arrangement at LandQuire.

Meet our team—multidisciplinary expertise dedicated to your project.

Want to take the plunge and invest in the United States in a safe and professional way?

Request a free estimate now or discuss your project with our team of experts.

Optimization tip: the LLC

Forming an LLC (Limited Liability Company) in the United States is a strategy favored by many international investors. It allows you to:

Better protection of your personal assets in the event of litigation or bankruptcy
Tax transparency with the option to be taxed as an individual or as a corporation (selecting an LLC’s tax status with the IRS)
A clear division of shares between co-investors, with a structuring operating agreement
Simplified inheritance or transfer of shares

To learn more about forming an LLC and its obligations, see:

The Small Business Administration (SBA)'s official website for understanding the legal basics of an LLC
LegalZoom for a practical overview of the company formation process
A comprehensive definition of an LLC on Investopedia, including its tax and legal implications

Disclaimer: The information presented in this article is for educational purposes only and does not constitute personalized legal, tax, or financial advice. The tax treatment of an LLC and its reporting requirements vary by U.S. state and the investor’s personal circumstances, and are subject to change. Past performance is not indicative of future results; returns are not guaranteed. Consult an attorney and a tax specialist with expertise in U.S. law and international taxation before establishing any structure or making any commitments.

Create an LLC in the USA: Protect your real estate investment effectively