Incorporate - Posted by Fred

Posted by dave on March 13, 2001 at 21:19:59:

if you haven’t read the above post they give you all the details

Incorporate - Posted by Fred

Posted by Fred on March 11, 2001 at 20:00:17:

I am ready to incorporate my company. Its going to be a C corporation. Could someone explain to me the most simple way to do this.

Re: Incorporate - Posted by Shaun

Posted by Shaun on March 12, 2001 at 06:31:39:

Most use a IRS rules Sub Chapter C Corporation in the R.E. Business to to wholesale and retail flips, buying and selling quickly for short term profit. This seems to fit better for this and give the most protection. They use Sub Chapter S Corporations for longer term hold of investment properties or a LLC Limited Liability Company. The Chapter C and S have different tax consequences as a C must file its own return, while a S profit or loss flows through to your own tax return.

Re: Incorporate - Posted by Shaun

Posted by Shaun on March 11, 2001 at 20:39:32:

If you are going to incorporate in the state in which you live and do business, simply write or call the Secetary of States Office or the one who is responsible for incorporations and follow their instructions.

Re: Incorporate - Posted by Surfdog

Posted by Surfdog on March 12, 2001 at 17:39:20:

Shaun-for flipping/anti-dealer purposes, as long as it is in a corporate entity & thus segregated from your “keeper” props, why can’t I use an “S”?

Re: Incorporate - Posted by dave

Posted by dave on March 11, 2001 at 21:10:40:

why a C?

Re: Incorporate - Posted by Terry (Houston)

Posted by Terry (Houston) on March 12, 2001 at 18:05:22:

You can if it is the right choice for you.

I did this after some conversations with George Yeiter.

Talk to your CPA and determine if a C or S is better for you.

Terry

Re: Incorporate - Posted by Rafael Perez

Posted by Rafael Perez on March 11, 2001 at 21:48:46:

what is a C? and please excuse my ignorance…

Re: Incorporate - Posted by Shaun

Posted by Shaun on March 13, 2001 at 06:48:28:

Terry is right you can. What you want to be sure to do is keep any flipper property and long term investment property seperate. Most wholesale flippers or fixer upper flippers seem to want to do that in a C corp to take full advantage of all deductions, since they have to pay full normal taxes on any profits. They tend to use the S corp for their investment property or just show them on their schedule E What ever works for you.