Re: Becoming a Businees with rentals - Posted by Carl (IL)
Posted by Carl (IL) on December 08, 1998 at 23:39:41:
Really, you can start a business even if you don’t own any property at all. However, at some point, (varies from person to person), the costs of starting and maintaining a LLC, S-Corp etc. are less than the tax advantages of having such an entity and therefore, would be desireable to create, (this speaks only from a monitary perspective, corporations also can add a layer of protection from liabilities). Alot depends on your current income from other sources and what other write-offs you currently have. I currently have 6 properties and am getting close to where I should establish a LLC or S-Corp, (I am currently DBA, “doing business as” which still lumps my business and personal taxes together). This topic comes up at my semi-annual reviews with my accountant where she, so far, does a flurry of calculations and says “your not ready yet”. I suggest you consult an accountant for your particular situation.