Posted by David Alexander on July 20, 2001 at 10:55:47:
To start they have lower tax brackets than an individual… So If you plan on mkaing any money at all… it makes since…
S Corps, LLC’s etc or just an extension of you and are taxed on your own return.
David Alexander
To incorporate or not - Posted by Mel(NC)
Posted by Mel(NC) on July 19, 2001 at 20:05:55:
I buy and renovate about 3-4 houses a year. Half I keep and rent and the other half I sell, depending on the potential cash flow. I see a lot of articles that recommend becoming a C corp but I don’t see a lot of details. I know there is certainly some liability coverage with the C Corp but I am really interested in tax avoidance. My CPA says there would be no benefit for me. Does anybody have a different opinion?
Thanks,
Mel
Re: To incorporate or not - Posted by David Alexander
Posted by David Alexander on July 20, 2001 at 24:36:56:
A C Corp for those you sell and an LLC or LP for the rentals with the C corp as the general partner.
Incorporate for both the tax advantages and for the protection.
David Alexander
Re: To incorporate or not - Posted by bob (pa)
Posted by bob (pa) on July 19, 2001 at 22:03:04:
If your worried about being sued, consider an LLC.
Re: To incorporate or not - Posted by Fred
Posted by Fred on July 19, 2001 at 21:01:51:
You are in the same decision drama that those of us who finally learned enough to realize why you must incorporate. Go to website www.123-incorporate.com or your secretary of states website to learn how to. Your CPA does not appear to be a real estate investor. There are many benefits tied to being incorporated. We live in a nation of laws and real estate is a big money business. Being sued and judgements are a part of doing business in America. Protect your home and your dreams from becoming cancelled. It’s easy to incorporate your business and you do not need an attorney to do so. Being that you rehab and rent; you will find that an LLC or S Corp will work best for you.
Re: To incorporate or not - Posted by Tim
Posted by Tim on July 19, 2001 at 20:20:48:
The Essential Corporation Handbook (Psi Successful Business Library)
Re: To incorporate or not - Posted by mel(nc)
Posted by mel(nc) on July 20, 2001 at 06:57:54:
Your right. My CPA does not do any real estate investing. I have looked for one that does but haven’t had any luck yet. What I have read about s corp. is that they offer no liability coverage. If I understand it correctly, the S corp is tax entity but not a legal one. I am a part owner of a C corp that is not real estate related, so I am somewhat familiar with the concept. The allowable expenses like health coverage and retirement plans would not really benefit me, so I am not sure I see any tax advantage in incorporating. Thanks to everyone for the posts!