Posted by Milian_DeLores on March 14, 2002 at 18:46:47:
Thanks for your 2 cents.
Forming RE Corporations using Internet or DIY - Posted by Milian_DeLores
Posted by Milian_DeLores on March 14, 2002 at 11:56:37:
Has anyone incorp. their real estate business using services on the internet or doing it themselves after reading the books that are available? If so, have you ran into any problems? I live in NJ but was thinking about incorp. in Delaware.
My cousin spoke with her professor last night who has a
PHD in Management and is the Director of an Entreprenuer Dev Program in for Alabama. She asked him about getting incorporated over the internet. He advised against it. He also advised against doing it yourself and going thru
Delaware. He said all kinds of people do it and then when they go to court for something it doesn’t stand up. Her take from him was that it wouldn’t hold up in court and therefore it would be possible for someone to come after your personal assets if the bylaws weren’t written just so…Her husband also added something about the Corp. Veil
being pierced then everything gets thru. There is a thin line between the people running the corp and the corp itself. This is the corporate veil.
Re: Forming RE Corporations using Internet or DIY - Posted by Dan
Posted by Dan on March 14, 2002 at 18:44:05:
Milian,
William Bronchick offers an excellent do-it-yourself course titled How To Create A Bulletproof Corporation.Your question could probably be answered more thoroughly through the legal corner.
Dan
Re: Forming RE Corporations using Internet or DIY - Posted by Anthony_MI
Posted by Anthony_MI on March 14, 2002 at 17:58:22:
I had just finished the last 6 months going through the incorporation process and let me tell you that I would go and speak to your accountant and tax attorney about what to do. I had the impression that I too could incorporate in DEL or NV and avoid the state taxes - but if I was repeatedly advised that if I didnt hold an office in either state, did any business in the state, and all my revenues were coming from other states - I would not hold under close scrutiny under any Audit. Why are a lot of people doing it? Tax evasion and avoidance sometimes are very close and can get one burned - but the key in incorporating in the 2 aforementioned states is primarily if you are doing business IN those states/generating revenue in those states. This came from 5 different sessions with various tax attorney(s) and different accountants - Some of my friends have done this - but, they know that it wouldnt hold under and audit - sure you have some advantages in court - but the IRS Doesnt need to take you to court to audit your Corp.
For example…Exactly how would you defend if all your flips/rentals/ rehabs are in NC or VA or any other state for that matter (this is of public record)- and all profits are funneled through your DEL/NV corp?
I would LOVE to hear what other have done?.I?m totally for doing things Right and would like to hear others opinion ? especially if they disagree
my 2 cents…