PRIOR TO DOING FIRST DEAL - - Posted by JIM

Real Estate Investing Real Estate Financing
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Posted by Bob G. on November 10, 2005 at 20:13:13:

There is a lot to consider in the question that you pose. Legal liability is one part, but taxes is another important part. But first, let me make it clear that no matter how you set it up, as an LLC, Partnership, Corp, etc., just about any lender will require you to personally guarantee the loan anyway (if they don’t be skeptical). Whether or not to do this as a partnership, LLC or corp will depend on your trust of your partner and your individual financial and tax situations. If you trust your “partner” go with a partnership (bad liability issues, good tax benefits), if not an LLC is the next best route. I would recommend using an attorney for this no matter what (online services are rarely airtight in every state).

If you would like to discuss further, please feel free to contact me directly at bob_gasperini@verizon.net.

Bob G.

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PRIOR TO DOING FIRST DEAL - - Posted by JIM

Posted by JIM on November 05, 2005 at 10:53:38:

(I’m posting this to other forums as well)

A friend and I are starting this together, and we both agree that we shouldn’t use our own names to do business. I’ve heard that partnerships aren’t the best way to go either, as you can be held personally responsible for your partner’s legal debts and issues. So would forming an LLC be the best way to go, and how do you divide the LLC between two people? How about doing it ourselves online or better to be safe and have an attorney do it for us?

Thanks -

Jimmy D