company - Posted by Pat

Posted by Mike Schmidt (IL) on May 09, 2001 at 14:20:34:

An Sole Proprietor will do very little for you, you need to either incorporate (S or C corp, depends on your needs) or form a LLC (Limited Liability Corp). Tax issues are one thing these type of corps can help you with, but more importantly, they also can separate your actual liabilities. In other words if someone sues you, do you want them to be able to go after you personally and have the chance to take what you own, or would you rather they go after your Corp., which shields your personal assets? A Sole Proprietor does not protect you either way and I don?t really think they do much for you tax wise either.

To determine which would be the best way for you to go, I suggest you talk to your accountant. If you don?t have an accountant, find one from your local REI club or from a referral of someone who?s opinion you trust.

company - Posted by Pat

Posted by Pat on May 09, 2001 at 11:32:58:

When starting out doing real estate deals is it a good idea to form a company that your working under for tax purposes. Should it be incorporated or single proprietor.