Do I Want To Make It A Business?
Okay going to start investing and do not know if we should be a business or not should we get license and if yes how
because of taxes and right off we will be upgrading the land or homes
pls someone help very interested in any infor. Thank You 
As a REI you are buying and selling real estate. So you do not need a license, but you will eventually need a business entity to hold your properties and the benefit of claiming business tax deductions.
Realtors need licenses because they are selling other people's properties. Since we are buying the property, we hold the title so we do not need a license to sell the property.
A simple answer to your question is Yes, REI is a business and it should be treated as such.
Tanya[ Edited by tanya1215 on Date 06/27/2003 ]
Thank you so much. I am planning to open a bank acct. for the business with the start of cash Now how I start a business and is it consideres a REI business Thank you for all your help!!
You need to consult a real estate attorney concerning starting a business. They will explain the different business entities to choose from (i.e., corporation, LLC, S-corp, etc.). You should also consult a CPA that knows real estate well so that you can find out the tax advantages of each entity.
Tanya
THANK YOU VERY MUCH!!!!!!
You don't need to go to the expense and trouble of forming a business entity before you know if you'll even like REI, or if you're any good at it.
I'd try my hand at it first, and make sure that it's what you want to do. Not only is forming a business expensive (and a headache to keep up with), it may not be in your best interest.
In most cases, you'll have to do a large volume (ie lots of cash generated) to make the costs of owning a business make sense. There a other less expensive ways to protect yourself in the short term, like land trusts.
It's always better to speak with both your attorney and tax advisor on the costs and benefits of forming a business compared to a sole proprietorship.
Roger
Quote:
On 2003-06-27 20:30, rajwarrior wrote:
You don't need to go to the expense and trouble of forming a business entity before you know if you'll even like REI, or if you're any good at it.
I'd try my hand at it first, and make sure that it's what you want to do. Not only is forming a business expensive (and a headache to keep up with), it may not be in your best interest.
In most cases, you'll have to do a large volume (ie lots of cash generated) to make the costs of owning a business make sense. There a other less expensive ways to protect yourself in the short term, like land trusts.
It's always better to speak with both your attorney and tax advisor on the costs and benefits of forming a business compared to a sole proprietorship.
Roger
Great advice!