Q – I’m unlikely to have time to visit Buffalo in the next couple of years, so I wont be able to open a bank account (I understand that’s one of the few things I need to be there for physically, even if I have an LLC) What happens to my income?
A – You have a few choices here. The most common scenario is where the investor will simply get the property manager to build up the income in your account and wire it over as and when you wish. Some investors even just build this up until there is enough to buy a new house and keep it ‘rolling over’ in the US. Your income should be visible at all times and easy to keep an eye on. A good choice in property manager is also of utmost importance here – I’ve seen bad/dishonest managers check larger amounts on an account and miraculously having a ‘repair’ needed that adds up to about the same amount that is on account.
Q – Assuming that I have opened a bank account, can I use the ATM card overseas?
A – The simple answer is yes, although the bank may charge you, depending on who you bank with and what ATM you use.
Q – Will be I charged withholding tax on my profits because I’m an overseas resident?
A – Unless you apply for an ‘ITIN’ number, yes you most likely will be. Fortunately an ITIN number (which is a tax id number for overseas residents) is quite easy to apply for, (via a W7 form) but check updates and latest best practice with your accountant.