Setting Up A Company
im looking to get in to investment arena and based on my expirence and lack of funding Im thinking starting a contracting company is the direction for me to build some capital then unload it on RE. My question is I was hoping to start up a businees under soleprop. Is this a good way to start or am I not giving myself enough protection?
as a sole proprietor, you basically have no protection.... I would recommend S Corp or LLC, consult attorney or CPA
Sole propritorship offer ZERO protection: There are 3 tools to create protection from: Taxes, Probate, and Lawsuits.
Our suggestion:
A. Create a charitable remainder trust, Section 664D of the tax code C – Corp to operate the business! To protect your income tax.
B. Use the tool that works –Well drafted a family limited partnership. Section 704 of the IRS code – they have been used since 1916; and ratified in all 50 states. Family Limited Partnership – (stops lawsuits cold) where it does not matter if you change states.
C. Living Trust –
Separate the ownership NEVER relinquish control and structure the combination of the above (A,B,C) to create the net effect of:
No capital gains tax
More retirement income
No estate tax
Income tax refund (gives the refund right
now)
You control Trust (future payments will be due)
Best Retirement Plan (well drafted and pre-approved by IRS)
Lease back the trust assets to the business
If you have questions, obtain legal advice,
Eric & Rosa
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