Purchasing As A Business Or Ind.

Comments(5)

• 
  jorge1214th September, 2003

  For liability purposes the general partnership is the absolute worse type of entity as it renders you vicariously liable for the acts of your partner. for tax purposes, a partnership is treated like a sole proprietorship (i.e. one man show).

• 
  tvarookieinvestor7th September, 2003

  Should we do a S corp or a C corp. What would the pros\cons be in regards to doing it under our own names ind? Which is not what we want to do.
  
  Thanks
  TVA

• 
  relawyer10th September, 2003

  Why do you need the entity? Just do it in your own names, as joint owners if that is what you're trying to accomplish. The entity does nothing for you except cost you money. If you must use an entity and must choose between S and C Corp., choose S Corp to avoid taxation at the entity level on rental income and/or upon disposition of the property.

• 
  mussetter10th September, 2003

  I totally disagree.
  
  A Corp gives you separation and loss limit.
  
  A C Corp is harder to 'lower the veil' of liability protection.
  
  Several corps gives you even better separation, or land trusts that hold title to the actual properties, but a corp that controls them and you control the corp.
  
  You don't actually OWN anything but you CONTROL everything!
  
  Ronnie

• 
  mussetter10th September, 2003

  Sorry TVA.
  
  I kind of ran off in that last post. IMHO, you were getting crappy advice.
  
  A corp or LLC is an entity, or like another person. This entity can own property, make profit, pay salaries. It can also pay for you the employee (In PRETAX DOLLARS) health insurance, life insurance, travel expenses, transportation expenses, office supplies. It can set up for you, the employee, a retirement program, a health care cafeteria-style savings plan. This corporation can (in Pretax Dollars) set up a scholarship fund for the children (your children) of employees (you) of the corporation. (Which you control)
  
  Please, read the book 'own your own corporation' by garrett sutton and sponsored by Robert Kiyosaki. I got it from the library when I read it.
  
  IMHO, the benefits are too many to list here. If I can be of any further assistance to you, please feel free to email me. I'm here to help
  
  Ronnie