Posted by Glenn OH on February 01, 2000 at 14:01:46:
I’m not sure at this point that I can be much more help. I would suggest going to the library to look for a book about forming your own LLC or Corp, where they will explain the differences better than I can. elated to using your current S-corp, one thing to watch for is that liabilities from one business not wipe out assets from another. You may need to have a number of LLC’s or Corp’s to handle multiple properties. You could also bring in investment money this way (possibly with a LP with corp as General Partner, and investors as Limited Partners). Just some thoughts.
Glenn
What is the different between a LLC and S-Corp.? Are you still protected either way? Any input out there. At this point all of my investments in real estate are under my name alone. But I do have a S-corp.(Mi) already set up because of another venture. Would I benefit from selling my houses to the S-Corp. I live in Mi., but only buy in Oh. Thanks
Posted by Tony-VA on February 01, 2000 at 15:07:35:
Glenn is correct. Be careful about mixing risky assets with non-risky assets. Rental properties subject you to risk of civil suit. Notes that you hold, certainly offer less risk. You would want to keep them separate. (Kind of like that old …don’t put all your eggs in one basket saying).
Your best bet is to click on the “legar forum” in the upper left corner of the creonline home page. Attorney Bill Bronchick’s material is very good. I recently used it to set up my own LLC. It saved me money and I gained the education all for less than I would have had to pay to have a company do this for me. Although the corporating companies are not a bad alternative. Mr. Bronchick has more info on his website “legalwiz.com”.
Posted by Glenn OH on February 01, 2000 at 10:01:35:
My understanding is that the limited liability is about the same in the S-corp. vs. the LLC. I think the set-up and ongoing paperwork on the LLC is simpler, making it the easier route to chose. I will defer to others (especially the lawyers) to verify and expand on this simpistic response.
Glenn
Posted by Glenn OH on February 05, 2000 at 11:55:32:
How about multiple of whichever you choose is best - I don’t think the differences between the two are about the type of property, but about the type of entity. Both offer liability protection, so two or more LLC’s would allow separation of the type, as would 2 or more S-corps.
Thanks, I will probably stay with a S-Corp. since I already have it. But why would I want to use a S-Corp., at this point I own in my name, do I n ot want to do this