Real Estate Investors
what is the best way to start your real estate investment company as a partnership or LLC. And where is a good business plan on this site to start out
what is the best way to start your real estate investment company as a partnership or LLC. And where is a good business plan on this site to start out
This is a difficult question to answer because it really depends on how comfortable you feel with the different entities. Each deals with liability and risk differently and each has different legal consequences.
There are books that illustrate the difference b/w the two and you can find comparisons online.
Charley
From what I understand about LLC's, ect, there is more of a question of cost effectiveness. The cost of setting up some of these type of entities is quite expense. My accountant states that as the income increases it becomes more cost effective to set up the different entitiies. All of these are basicly to offset taxes, and then to protect assests. My volume is low at this point, so I operate a Sched C company, when my volume increases I will probably spring for the LLC (approx $2000 to set up and an additional $250 per year to maintain). I would defer to some one with expertice in that area. I make RE deals, I have taken tax courses, not to be an expert but to be able to understand what my account is saying to me and have my eyes glaze over when we talk. All this is just my opinion, which buys bread for my family. Hope I have helped.
[addsig]
A typical investor would use an LLC for holding a property and a S-corp for flipping. As far as cost, in my state the yearly fee for a LLC is $200, S-corp $20, but a LLC is much less of a hassle. I just fill out the forms for free from my state's web site, you may want to pay ~$16 online for a operating aggreement.
You might find more responses in the beginners forum or possibly leagal.