Posted by M.Lynn on March 13, 2002 at 19:05:21:
Uh…I AM asking.
Investing as a corporation - Posted by M.Lynn
Posted by M.Lynn on March 11, 2002 at 20:24:21:
I recently attended a real estate seminar where we were strongly urged to start an llc and a corporation BEFORE investing. I realize the advantages here but I am a bit skeptical that perhaps this was part of his sales pitch for his $400.00 books and tapes set on corporations. I plan to start a corporation and llc but I just need to know if it’s more prudent to begin investing ONLY after I have done so.
Re: Investing as a corporation - Posted by M.Lynn
Posted by M.Lynn on March 13, 2002 at 18:43:45:
I appreciate your responses. All are helpful.
Re: Investing as a corporation - Posted by bob
Posted by bob on March 12, 2002 at 14:18:53:
Dont be fooled. Setting up a corporation is easy. Go to the bookstore and buy a book or two on a corporation or LLC. I bought 1 book that had a disk that had a fill in the blank version for every state. It takes a few hours and less than $200 in most states.Look up your state’s office on the internet and they have almost all the information of where to send the paperwork. Good Luck
Re: Investing as a corporation - Posted by Randy_OH
Posted by Randy_OH on March 12, 2002 at 13:17:27:
M.Lynn,
For asset and liability protection, I am not aware of any significant benefits to using an entity unless you have employees or a property manager. As I understand it, if you are doing everything yourself, you would be personally liable for anything that goes wrong even if your properties are owned by your entity. For asset and liability protection, I think it is better to buy some good liability insurance coverage. I am also not aware of any significant tax advantages to using an entity for REI as long as you are the 100% owner. There may be some benefits if you want to spread the ownership among family members. I have raised this issue on other chatboards and got a lot of flack from lawyers and investors who use entites, but none of them were able to give a specific example of how a one-man operation gets any significant asset or liability protection by using an entity. Maybe someone on this board can offer such an example. Of course, there may be other reasons for using an entity, such as estate planning. But if you are talking about asset or liability protection with you owning the entity 100% and managing your own properties with no employees, I don’t see how you get any protection.
Randy
Re: Investing as a corporation - Posted by JHyre in Ohio
Posted by JHyre in Ohio on March 12, 2002 at 11:52:27:
Do a deal. If it works out, go ahead and do your entities based on the kinds of deals that you are doing. I have seen lots of wannabe investors spend absurd amounts to set up entities for a business that never happens. Business first, entities second for people that are new and have little in the way of assets. Those with something to lose may start with entities in place before doing business.
John Hyre
Re: Investing as a corporation - Posted by Ronn
Posted by Ronn on March 12, 2002 at 03:31:18:
Don’t do it as a profit company. Have secrets and alternitives, free, just ask. Ronn