How much does it cost to form a US LLC for rental property investment?

Foundry Property Group charges $600 for LLC formation, which includes articles of organization, operating agreement, EIN application, and registered agent setup. State filing fees are included. For Foundry investors, LLC formation is included at no additional cost.

How long does it take to form a US LLC?

7 to 14 business days from start to completion. Texas typically processes faster than Florida. The EIN application is usually the longest step for foreign nationals because it requires fax or mail submission.

Can Foundry form an LLC for investors who are not buying Foundry properties?

Yes. Foundry offers LLC formation as a standalone $600 service to any international investor, US-based operator, or property group that needs entity formation for real estate investment.

LLC Formation for Foreign Investors | US LLC for Overseas Property Buyers

Q: Which state should a foreign investor form an LLC in?

Form the LLC in the state where the property is located. For Foundry properties, this means Texas or Florida. Both states have no state income tax. Forming in the property state avoids the cost and complexity of registering a foreign LLC in a second state.

Q: What is an EIN and why does a foreign investor need one?

An EIN (Employer Identification Number) is the tax ID number the IRS assigns to your LLC. It is required to open a US bank account, file US tax returns, and close on property. Foreign nationals cannot apply online, so Foundry handles the fax or mail submission.

Why an LLC

Why international investors should hold US property through an LLC.

A limited liability company (LLC) is the standard entity structure for international investors purchasing US rental property. While it is not a legal requirement to own property through an LLC, doing so provides three critical protections that direct ownership in your personal name does not.

First, an LLC separates your personal assets from the investment property. If a tenant or visitor is injured on the property and files a lawsuit, the LLC limits their claim to the assets held within the entity, not your personal savings, home, or other investments. This liability protection is the primary reason attorneys recommend LLCs for rental property ownership.

Second, an LLC simplifies annual US tax filing. The IRS treats a single-member LLC as a "disregarded entity" for tax purposes, which means the rental income flows through to the owner's personal tax return without the complexity of a corporate filing. Your CPA files a single return, not multiple ones.

Third, holding property in an LLC can provide estate planning benefits. Transferring an LLC interest is simpler than transferring title to real property, which can matter for international investors whose estate planning involves multiple jurisdictions.

What Foundry's LLC formation includes

Everything you need to establish your US investment entity and begin the property acquisition process.

Articles of Organization

We prepare and file the articles of organization (called a Certificate of Formation in Texas) with the appropriate state agency. This is the document that legally creates your LLC. State filing fees are included in Foundry's $600 service fee.

Operating Agreement

A custom operating agreement that defines the management structure, distribution policies, and operational rules for your LLC. This document is required by most title companies and banks before they will transact with a foreign-owned entity. Foundry drafts this directly.

EIN Application

We apply for your Employer Identification Number (EIN) from the IRS. This is the tax ID number for your LLC. You need it to open a US bank account, file tax returns, and close on property. Foreign nationals cannot apply online, so Foundry handles the filing process.

Registered Agent Setup

Every LLC must have a registered agent with a physical address in the state of formation. The registered agent receives official correspondence, tax notices, and legal documents on behalf of the entity. Foundry sets up the registered agent as part of the formation process.

Entity Documentation Package

You receive a complete package with your filed articles of organization, executed operating agreement, EIN confirmation letter, and registered agent details. This package is what the title company and bank will need to transact.

State Compliance Guidance

Foundry provides guidance on annual compliance requirements for your LLC, including franchise tax filings (Texas) and annual report filings (Florida). These are simple requirements, but missing them can result in administrative dissolution of your entity.

LLC Formation Fee

$600

Flat fee. No hourly billing. No surprise charges. State filing fees included.

Articles of organization prepared and filed with the state

Custom operating agreement for rental property investment

EIN application filed with the IRS

Registered agent setup for the first year

Complete documentation package delivered to you

Foundry investors receive LLC formation as part of the investment process at no additional cost. The $600 standalone fee is for investors, operators, and property groups who need entity formation outside of a Foundry property purchase.

Texas vs. Florida LLC formation

Foundry forms LLCs in both states. The right choice depends on where your property is located.

Factor	Texas	Florida
State Income Tax	None	None
Filing Document	Certificate of Formation	Articles of Organization
State Filing Fee	$300	$125
Annual Requirement	Franchise Tax Report (due May 15)	Annual Report (due May 1)
Annual Fee	$0 for most small LLCs	$138.75
Processing Time	3 to 7 business days	5 to 10 business days
Expedited Option	Available (additional state fee)	Available (additional state fee)
Privacy	Member names not public	Member names not public (manager-managed)
Foundry Recommendation	Form in TX if property is in Houston or DFW	Form in FL if property is in Tampa Bay

How the formation process works

From engagement to completed entity in 7 to 14 business days.

Information Collection

Foundry collects the investor's passport details, home address, preferred LLC name, and property state. We confirm the entity structure (single-member or multi-member) and prepare the filing documents.

Day 1

State Filing

Articles of organization are prepared and filed with the Texas Secretary of State or Florida Division of Corporations. The registered agent is designated in the filing.

Days 2 to 3

Operating Agreement and EIN

Once the state confirms the filing, Foundry drafts the operating agreement and submits the EIN application to the IRS. Foreign national EIN applications require fax or mail submission and take longer than domestic applications.

Days 3 to 10

Delivery

The investor receives the complete entity documentation package: filed articles, executed operating agreement, EIN confirmation, and registered agent details. The entity is ready to open a bank account and close on property.

Days 7 to 14

Available to Anyone

LLC formation is not limited to Foundry investors.

Foundry offers LLC formation as a standalone service. You do not need to be purchasing a property through Foundry to use this service. If you are an investor, operator, or property group that needs a US entity formed for real estate investment, we can do it for $600.

We handle the same scope of work regardless of whether you are a Foundry client or not: articles, operating agreement, EIN, registered agent. The only difference is that Foundry investors receive this service as part of their investment process at no additional cost.

International investors working with other operators

If you are purchasing US property through a different company and need an LLC formed in Texas or Florida, Foundry provides the entity formation without requiring you to use our other services.

Property groups forming entities for their clients

If you are a property consultancy or investment group and your clients need US entities, Foundry can handle the formation at volume. Contact us to discuss pricing for multiple formations.

US-based operators needing entity formation

If you are a US operator who needs LLCs formed for your own investment properties or for your clients, the same $600 service applies. No minimum volume required.

LLC formation questions

Common questions from international investors about forming a US LLC for rental property.

Do I need a US LLC to buy rental property as a foreign investor?

Not legally required, but strongly recommended. An LLC provides liability protection by separating your personal assets from the investment property, simplifies your annual US tax filing, and is preferred by most title companies and banks when transacting with foreign nationals. Nearly every international investor purchasing through Foundry uses an LLC.

Which state should I form my LLC in?

Form the LLC in the state where the property is located. If you are buying in Houston or Dallas-Fort Worth, form in Texas. If you are buying in Tampa Bay, form in Florida. Both states have no state income tax. Forming in the property state avoids the cost and complexity of registering a foreign LLC in a second state.

What is an EIN and why do I need one?

An EIN is the tax ID number the IRS assigns to your LLC. You need it to open a US bank account, file US tax returns, and close on property. Foreign nationals cannot apply for an EIN online through the IRS website, so Foundry handles the application process via fax or mail submission.

How long does LLC formation take?

7 to 14 business days from start to completion. Texas typically processes faster than Florida. The EIN application is the longest step for foreign nationals because it requires fax or mail submission rather than the instant online process available to US residents. Expedited state filing is available for an additional state fee.

Can I own multiple properties under one LLC?

Yes. A single LLC can hold multiple properties in the same state. Some investors prefer separate LLCs for each property to isolate liability, while others use one entity for simplicity. Your CPA can advise on the optimal structure based on your portfolio size, risk tolerance, and tax situation.

Is this a legal service?

No. Foundry provides document preparation services for LLC formation, not legal advice. We prepare and file the formation documents, draft the operating agreement, and handle the EIN application. For specific legal questions about entity structure, asset protection, or cross-border tax implications, Foundry refers investors to attorneys in our network who specialize in foreign-national real estate investment.

Your US investment entity. Formed, filed, and ready to close in days.