What is the best type of company to set up when first starting out in REI to purchase your properties under. Or does it depend on what type of REI you get into.
Consider setting up the S Corp as the previous response suggested. Then if you use an LLC for rentals, have the S corp own it. This would give you a double barrier to protect you personal assests from any legal problems.
Talk to a creditable attorney or accountant before you do anything. They will need to understand what it is your trying to accomplish before you setup anything.
For tax treatment purposes, you may not want to do what is suggested above if you want your company's expenses to flow through you personally and offset your personal income.
Again, consult with someone who understands the business and can give you sound advice.
It depends on what you want to do.
TALK TO YOUR LOCAL RE LAWYER OR ACCOUNTANT.
But, generally:
LLC’s are generally the way to hold rentals
S-Corporations are usually the best way to flip properties.
[ Edited by nebulousd on Date 03/16/2004 ]
Consider setting up the S Corp as the previous response suggested. Then if you use an LLC for rentals, have the S corp own it. This would give you a double barrier to protect you personal assests from any legal problems.
Talk to a creditable attorney or accountant before you do anything. They will need to understand what it is your trying to accomplish before you setup anything.
For tax treatment purposes, you may not want to do what is suggested above if you want your company's expenses to flow through you personally and offset your personal income.
Again, consult with someone who understands the business and can give you sound advice.