How would you structure this...
I'm brand new at this CRI (waiting for my CS course, preparing for greatness 
and would like some expert advice.
I'm looking for advice on setting up a portfolio style business structure that will provide the greatest amount of tax shelter for my wifes business, and the most security for my investment assets, allowing me to start doing some quick turning real estate investments, and maybee some long term (rentals, repair-sell) also.
Situation:
Wife is a newly liscenced real estate agent and will need to write off many expenses, with personal liability protection. LLC? what type? S, C, LP??
I am pullling salary, beneis and 40k/yr, looking for a way out of the rat race through some creative RE investment strategies.
Should I form a separate business entity to do the CRI? I was reading other posts regarding land trusts with the LLC beneficiary? would this single entity provide enough tax shelters for my wifes company and any CRI income?
What else am I missing (I'm sure there's something I haven't thought about)? We live in Arizona if that makes any difference regarding state tax regs.
Thanks for all the help!
"The Newbie"
Dave
Have you spoken with a local CPA and/ or attorney?
Considering your situation, your wife, depending on if she has set up her own brokerage, or if she is working for another broker, may be unable to work for a broker as an independent contractor, which she would be if she were paid as an LLC. Additionally, she and you may be able to deduct certain expenses as a sole proprietor.
Consider the following:
First, you should seriously consider local advisors. Many times an accountant (after April 15) will consult with an individual to help one look at his personal factors to determine if there is a net benefit to creating an LLC or a Corp.
Second, the cost of creating an LLC, payment of franchise fees, and tax return preparation, should be weighed against potential "tax savings."
Third, consider what assets you have at risk, especially if you are flipping property rather than holding for rental for example.
Best of luck...
Eat_at_Joes
Dave:
I agree with the post above. Does your wife have a broker's or sales agent license?
Regardless what type of license she has, when using an entity to conduct brokerage or licensed activity, most states also require that the entity get a license. If she is not a broker, depending on your state RE license law, she probably cannot get the entity license, as many states that I am aware of require a director, employee, officer, or shareholder (or member if a LLC) have a broker's license as a prereq to getting the entity brokerage license.
Also, since she will be active in the business, you may want to look at using the LLC and filing joint returns so that you can get around the passive loss rules (which limit the deductibility of losses; usually caused by depreciation) on your joint income.
Good luck,
Taxjunkie
Thanks for the responses. To clarify the situation slightly. My wife will only be working as an AGENT, not the broker. My reasoning with the LLC, was to protect above and beyond the Errors & Emmissions Ins. held by the brokerage, and provide an entity to start some REI. My assumption was writing off expenses through/for the LLC would reduce net taxable income.
I will take the advice and talk to my accountant. You have helped me to ask the right questions.