Your US LLC can hold a brokerage account and buy US real estate as a foreign owner. Both are legal and common, but each comes with paperwork, withholding rules, and state level taxes you should plan for before you wire any money.
Yes, the LLC can hold both
There is no rule that stops a foreign-owned US LLC from buying publicly traded stock or a piece of real estate. The LLC is a US legal entity, and it can open financial accounts and hold title to property like any other US company. What changes when the owner lives outside the US is the level of verification the bank or brokerage asks for, and how the IRS treats income that flows out to a foreign person. None of this makes the purchase illegal or unusual, it just adds steps.
Opening a brokerage account for the LLC
Once your LLC has an EIN, you can apply to a brokerage in the LLC's name. Expect a know your customer, or KYC, review that goes deeper than what a US resident owner would face. The brokerage will usually ask for:
- the LLC's formation documents and EIN confirmation
- the operating agreement showing who owns and controls the company
- identification for each owner, wherever they live
- a description of the source of the funds being deposited
Approval is always the brokerage's decision, not something PowerLaunch or any formation service can guarantee. Some brokerages are comfortable with foreign-owned LLCs, others are more cautious. Build extra time into your plan for this review.
Withholding on US dividends
If the LLC's brokerage account earns dividends from US stocks, and the LLC is owned by a foreign person, US tax law generally requires that a portion of that dividend be withheld before it reaches you. The exact rate depends on whether your home country has a tax treaty with the US and what that treaty says about dividend income. Without a treaty, the withholding tends to be higher. Your tax professional can tell you what rate applies to your situation and whether any of it can be recovered when you file.
Capital gains from selling the stock itself are treated differently from dividends, and the rules again depend on how the LLC is structured and who owns it. This is a conversation to have with a licensed tax professional before you start trading, not after.
Buying US real estate through the LLC
Real estate works the same way in principle: your LLC can hold title to a US property. Where it gets more involved is around income and eventual sale.
If the property produces rental income, that income is generally subject to US tax, and the rules for how it is reported depend on elections your LLC and its owners make with the IRS. Rental income also triggers state level tax obligations in the state where the property sits, separate from anything happening at the federal level.
State taxes follow the property
Wherever the real estate is located, that state will usually want its own tax filings and payments on the income the property generates, regardless of where your LLC is formed or where you personally live. A Wyoming LLC that owns a rental property in another state still has to deal with that state's tax authority for the property's income. This is one of the most commonly missed points by first-time foreign real estate buyers, so check the specific state's tax authority site for its current rules before you close on a property.
Selling the property, withholding at sale
When a foreign-owned entity sells US real estate, the buyer or the closing agent is generally required to withhold a portion of the sale price and send it to the IRS at closing, rather than letting the full proceeds pass through untouched. This protects the IRS's ability to collect tax on any gain from the sale. The amount withheld is not necessarily the final tax bill, it is a deposit against it, and you can often recover part of it once your tax return for that year is filed and the actual gain or loss is calculated. This is a rule you need to plan for well before closing, since it affects how much cash actually reaches your LLC on sale day.
Why one LLC per property is common
Many advisers recommend a separate LLC for each real estate property rather than putting several properties under one company. The main reasons are liability and cleanliness of the accounting:
| Structure | Liability exposure | Accounting clarity |
|---|---|---|
| One LLC per property | Problem in one property stays isolated from the others | Each property's income, expenses, and eventual sale are easy to track separately |
| One LLC holding several properties | A lawsuit or debt from one property can reach the others | Income and expenses blend together, harder to allocate for tax filings |
Stocks do not usually need this kind of separation, since a brokerage account does not carry the same liability risk as a physical property that people can visit, rent, or get injured on.
Why you need an adviser before you buy
Every point above, brokerage KYC, dividend withholding, rental income rules, state taxes, and sale withholding, depends on details specific to your situation: your home country, the state where the property sits, and how your LLC is set up. Rules also vary by state and change over time, so always confirm the current requirements on the relevant state's official site before you commit to a purchase. A licensed tax professional can walk through your actual numbers and tell you what to expect at each step, rather than relying on general rules that may not fit your case.
If your LLC also has foreign ownership, remember that a foreign-owned single-member LLC has its own federal filing obligation, Form 5472 with a pro forma 1120, due by 15 April each year, separate from anything related to stocks or property.
What to do next
If you are planning to buy US stocks or property through an LLC, get the entity and its tax setup right first. PowerLaunch's Run and Scale plans include a licensed tax professional consultation and ongoing tax filings, so you have someone to ask before you buy, not after. Book a free 20-minute consultation at powerlaunch.solutions/book to talk through your specific plan, or go straight to powerlaunch.solutions/signup to get your LLC formed and ready.
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