Pool
I live in New Jersey. I would like to know if I can form a LLC a make a pool of investor money and buy tax liens? I will have a minimum profit on the intrest, but my high profit will come from the properties that will be foreclosed and later saled.
It is certainly possible to gather a group of partners and go in together to purchase tax lien certificates.
I might recommend that you set up a limited partnership and use a newly created LLC to act as general partner. You would be paid a salary or any other fee struture that you agree on.
However, in most any partnership, if you do well you must share the wealth with all of the partners.
Do I have to file some kind of paperwork to the SEC tod o this??
Next question.
After the LLC is created, can I include other investors to this pool?
you have to what who you get money from. Basicaly if it friends and family you're much safe.
Otherwise you get into lending and securities law. The worse part, if you do the 1st way, and loose the persons money, they can come pact to for the money
I thought about doing this a year ago, and floated my flyer past him to see if there were any problems with it.
"Without even looking closey I see 5 state of fed laws your violating."
I am fairly new to the group but to answer this topic I would stay away from the LLC. The IRS is really going after profits from LLC's. They are not tried and tested to protect you. Your best bet is a Corp. If your small, an S corp. affords you the same protection. That is your best tax advantage but the liability protection is failing. It seems that today when people sue the corp. they also sue the officers. Thats It!! Good Luck!! :-D