Posted by Jim L (Phx_AZ) on September 20, 2000 at 20:23:49:
Depends on what type of investing you will be doing.
If you are going to buy and flip quickly for cash I would most certainly look into Incorporating whereas if I were buying and holding then an L.L.C. would be in order there. Why not do both? They are very inexpensive to set up and then at least what ever kind of deals surface for you, you’ll be ready to go!
Also talk to your accountant and your attorney for specifics.
Jim L (Phx_AZ)
LLC OR CORP??? - Posted by Scott
Posted by Scott on September 20, 2000 at 15:39:26:
Hey folks thanks for all the reply’s, I have a standard DBA in Michigan, as I grow I want to protect my assets and not get demolished in taxes, so my question is, should I incorporate or put in under an LLC. again thanks for all the other rapid responses and any help here would be greatly appreciated.
Thanks
Scott
Novi, Michigan
To consider - Posted by Bud Branstetter
Posted by Bud Branstetter on September 22, 2000 at 11:44:49:
Scott,
Your responses were both, or it depends. My approach is not to have enough taxable income to be overly concerned. The C corp may be used for operating the business and the LLC for longterm protection. But consider the tax free Roth IRA for building the wealth. Learn how to use it when you don’t have a lot of cash. Graduate to being your own hard money lender, then to your own banker.
How much cash do you need to live on right now? Why not put the rest into the Roth?
What about the Roth owning the interest in the LLC/Ltd partnership? How easy would an attack be with that combination? Do the calculations on how fast your money grows without having to take that 28% or more out of the profits.
Re: LLC OR CORP?.. “That DEPENDS”! - Posted by Lori Samson
Posted by Lori Samson on September 20, 2000 at 20:44:09:
I’m at the SDI bare bones boot camp and that the key phrase for the day, “That Depends”. You really do have to look at each individual’s situation and let the attorney and accountant tell you. I do agree with Jim but… that depends! I learned some things today that I haven’t heard before. From some of the new tax changes I would tell you maybe the LLC over the C-corp. That is opposite from what I thought I knew. You just have to stay current and have a good attorney and CPA!!
Lori