Incorporate or not? - Posted by Courtney Evans

import · July 23, 2003, 10:03am

Posted by Courtney on July 25, 2003 at 12:10:34:

Thanks for the info guys!

import · July 23, 2003, 10:03am

Posted by Courtney Evans on July 23, 2003 at 10:03:10:

Hello everyone!
I currently have 3 rental properties all operating under my name. I have an umbrella policy for 2 million for liabilities. Is there any benefit to forming an LLC and operating all of my activities under this instead? Can anyone speak from personal experience? Will I be able to take profit out of the LLC without tax penalties? Any advice will be helpful. Thanks.

import · July 24, 2003, 9:19pm

Re: Incorporate or not? - Posted by Chuck

Posted by Chuck on July 24, 2003 at 21:19:55:

The first thing I would do is put the properties into land trusts to get them out of your name.
It really won’t provide asset protection but if someone tries to search what you own it will be much harder for them to find out.

import · July 23, 2003, 1:10pm

Re: Incorporate or not? - Posted by Raisi Smith

Posted by Raisi Smith on July 23, 2003 at 13:10:03:

If you incorporate in Nevada and you do business in your local state and you decide to take profits out it will not report to the IRS because Nevada is not required to do so. But be advised to leave a proper paper trail of all your dealings just in case some one tries to pierce your corporate vail.
The first 50k of anual profits under a corporation quailfies for the 15% tax bracket. My advise is if you want to extract money from your corporation for personal consumption create a paper trail and show that everything that you spend your money on was business related which qualifies as growing the business and this way you can avoid taxation, because if you want to pay yourself a salary you will have to do so as an employee and then you will have to pay taxes on that salary.