First, you need to apply for registration with the US Securities and Exchange Commission. If reits are privately owned, they cannot be traded publicly.
A "company" must have a large number of real estate-related assets and income, and at least 90% of taxable income must be distributed to shareholders in the form of dividends every year. Enterprises eligible to become REIT have tax incentives, and their taxable income can be calculated after deducting dividends paid to shareholders. Most REITs pay 100% of taxable income to shareholders, so there is almost no corporate tax.
In addition to paying at least 90% of the taxable income to shareholders as dividends every year, real estate investment trust enterprises must also:
1. Except for the status of REIT, it is an entity that can be taxed as an enterprise;
2. Managed by the board of directors or the trustee;
3. Have fully convertible equity;
4.REIT has at least 100 shareholders one year after its establishment;
5. In the first half of the tax year, shareholders with less than five people cannot hold more than 50% of the shares;
6. At least 75% of the assets are real estate assets and cash;
7. At least 75% of the total income comes from real estate-related businesses, including rent and mortgage interest;
8. At least 95% of the total income comes from the above-mentioned real estate-related businesses and other dividends and interests;
9. In a taxable REIT subsidiary, unrestricted securities or stocks cannot exceed 25% of its assets.