Legal & tax guide · Orlando
Buying property as an individual or through an LLC: which to choose
Updated on 2026-07-14
There is no single answer: it depends on your goal, the amount invested and your asset exposure. Buying as an individual is simpler and cheaper, but leaves the property in your name with greater exposure to US estate tax (the inheritance tax for foreigners, whose exemption is very low — around $60K). Buying through an LLC costs more to set up and maintain (formation of ~$150–$500 and annual upkeep of ~$500–$2,000+), but offers liability protection, privacy and, depending on the structure, helps with succession planning. For a single home for personal use, many buy as individuals; for a rental portfolio or asset protection, an LLC often makes sense. This content is educational and does not replace guidance from a US attorney and a CPA.
Quick summary
- Individual: simpler and cheaper, with no company upkeep costs.
- LLC: liability protection, privacy and support for succession planning.
- Estate tax for foreigners has a very low exemption (~$60K) — confirm with a CPA.
- On sale, FIRPTA withholds up to 15% of the gross price at source, regardless of structure.
This is educational material and does NOT constitute legal or tax advice. Income tax, estate tax and FIRPTA rules change and depend on your personal situation and treaties. Figures are 2026 references and should be confirmed with a US attorney and CPA. Daniel Dourado coordinates the purchase and refers the specialists — but the final decision on structure is always yours and your advisors’.
Buying as an individual: pros and cons
Buying in your own name is the most direct route. A foreigner can acquire the property with a passport, ITIN and US bank account, without a visa or residency, and without the cost of setting up and maintaining a company. Income tax on rental income is filed by the individual (Form 1040-NR), as is the capital gain on sale. For a single home for personal use or a second residence, that simplicity often tips the balance.
The main downside is exposure. The property is registered in your name (public information in the county records), without the liability-protection layer a company provides — if there is a lawsuit tied to the property, your personal assets are more exposed. And, most delicately, direct ownership increases exposure to US estate tax: for a non-resident the exemption is only around $60K, far below the multimillion-dollar exemption US citizens enjoy. Above that, heirs can face high rates on the property value — a point many Brazilians are unaware of and that should be reviewed with a CPA.
Buying through an LLC: pros, cons and the estate-tax angle
The LLC (Limited Liability Company) is the structure most used by foreign investors. It separates the property from your personal assets, creating a liability-protection layer: in a lawsuit tied to the property, exposure is generally limited to the company’s assets. The LLC also brings privacy — the public property record is in the company’s name, not yours — and organizes accounting when there is more than one property or more than one partner, which helps anyone building a short-term-rental portfolio.
In succession planning, the LLC — often combined with other structures depending on the case — is frequently used to mitigate the estate-tax exposure that direct ownership would create. Note: not every LLC, on its own, solves estate tax; the right design depends on individual analysis, which is exactly why this decision requires an attorney and a CPA. The costs are real: formation of ~$150–$500 (varies by state and whether you use a filing service), a registered agent, annual accounting and state fees. For a single low-value home for personal use, that cost may not be justified; for a portfolio or higher-value properties, it usually pays off. As always: confirm with the specialists before deciding.
Costs of setting up and maintaining a Florida LLC
| Item | Cost (USD) | Frequency |
|---|---|---|
| LLC formation (state filing) | $150 – $500 | One-time |
| Registered agent | $100 – $300 | Annual |
| Annual Report (Florida state fee) | ≈ $139 | Annual |
| Accounting / company tax return | $400 – $1,500+ | Annual |
| EIN (company tax ID) | $0 – $150 | One-time |
| Estimated annual upkeep | $500 – $2,000+ | Annual |
2026 reference figures; they vary by provider and complexity. Confirm with your CPA and attorney.
Single home for personal use, in own name
- Price
- $450,000
- Structuring cost
- $0
- Annual company upkeep
- $0
- Estate-tax exposure
- Higher
Common for a personal second home — but review estate tax with a CPA.
Portfolio of 3 rental homes, via LLC
- Portfolio value
- $1,800,000
- LLC formation
- ≈ $350
- Annual upkeep
- ≈ $1,500
- Protection + privacy
- Yes
Annual cost is diluted across the portfolio and adds asset protection and planning — confirm the design with an attorney and CPA.
Where Daniel’s clients typically buy
- Magic VillageWhere Daniel has closed 58 transactions
- Storey Lake / KissimmeeStrong short-term rental demand
- ChampionsGate / DavenportNewer homes, common in LLC portfolios
- Lake Nona / Dr. PhillipsResidential, personal-use and appreciation
The choice between individual and LLC shifts with the goal — personal use or an income portfolio.
Individual vs. LLC: side-by-side
| Criterion | Individual | LLC |
|---|---|---|
| Asset protection | Low | High |
| Income tax | On the individual (1040-NR) | Usually pass-through* |
| Estate tax (inheritance) | Higher exposure | Can mitigate (with proper design) |
| Privacy | Name is public | Company name |
| Cost | No extra cost | Formation + annual upkeep |
| Financing | Simpler for foreigners | Possible, sometimes with different terms |
| Best suited for | Single home / personal use | Portfolio / asset protection |
Communities where we structure purchases
The ideal structure (individual or LLC) is defined case by case with an attorney and CPA. Talk to Daniel for active units.
Client cases
Couple from Curitiba, personal-use home
They wanted simplicity for a second home. After talking to the CPA Daniel referred, they chose to buy as individuals and review succession planning separately.
Simple purchase, separate succession plan
Investor from São Paulo, 3 income properties
Built a short-term rental portfolio. With an attorney and CPA, he structured everything via an LLC for protection and privacy — Daniel coordinated the purchases in Magic Village and ChampionsGate.
Portfolio via LLC, coordinated with specialists
Risks and points of attention
Estate tax for foreigners (inheritance)
The estate-tax exemption for non-residents is very low (around $60K). Without planning, heirs of a property held by an individual can face high tax. This is one of the main reasons many use structures — but the right design requires a CPA. Confirm your case before deciding.
FIRPTA withholding on sale
On sale, FIRPTA requires withholding at source of up to 15% of the gross sale price when the seller is a foreigner, regardless of whether there was a profit. The amount can be recovered later via a tax return, but it affects cash flow. Plan the sale with a CPA.
This content is not legal or tax advice
Tax rules and the best structures depend on your individual situation and change over time. Nothing here replaces guidance from a US attorney and CPA. Daniel Dourado refers the specialists and coordinates the purchase — the decision on structure is yours, with their support.
Watch: individual or LLC, how to decide
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Frequently asked questions
Do I need an LLC to buy US property?
No. Foreigners can buy as individuals, using a passport, ITIN and US bank account. An LLC is an option — useful for protection, privacy and planning — not a requirement.
Does an LLC eliminate estate tax?
Not necessarily. An LLC on its own does not always solve estate tax; it is sometimes combined with other structures. The right design depends on your case and should be set by a US attorney and CPA.
How much does it cost to maintain an LLC per year?
As a 2026 reference, annual upkeep is usually ~$500 to $2,000+, including registered agent, state fee (annual report ≈ $139 in Florida) and accounting. It depends on the number of properties and complexity.
Can I get financing when buying through an LLC?
Generally yes, but terms may differ from individual financing — some banks ask for a personal guarantee from the member or apply different rates. It is worth comparing both options with the bank before closing.
Does this guide count as legal advice?
No. It is general, educational material. Every situation is unique and rules change. Always consult a US attorney and CPA, and confirm the numbers for your case with Daniel and the specialists before deciding.
Want to decide the best structure for your case?
Daniel Dourado coordinates the purchase and connects you with attorneys and CPAs to decide whether buying as an individual or through an LLC makes more sense — based on your goals and assets.