Posted by Bert G on May 04, 1999 at 22:10:53:
After studying Bronchick’s asset protection course, I think it would be something like this.
Form your corporation. Use that to do flips, and maybe give it a DBA to manage your rental properties. Take title to the properties each in a separate land trust. Form an LLC. If your state requires more than one member, have you be one, and YOU INC. be the other (assuming you don’t have a real live partner). The LLC will be the beneficiary of the land trusts.
A few weeks ago I asked Bill on his website if that was the basic idea, and he said I aparently read the book correctly.
Bert G
NOT a lawyer
More than 1 corporation - Posted by James
Posted by James on May 04, 1999 at 16:06:21:
If a person has more than 1 property, is it a good idea to have more than corporation?
James B.
Re: More than 1 corporation - Posted by Ralph C in VA
Posted by Ralph C in VA on May 04, 1999 at 19:26:37:
You should discuss with a good asset protetion attorney (and CPA) what your overall goals are, and why you are investing in real estate.
In your discussion, ask the attrney to discuss a land trust for your properties. It may be quite helpful.
Ralph
Re: More than 1 corporation - Posted by JHyre in Ohio
Posted by JHyre in Ohio on May 04, 1999 at 17:17:53:
It is not a good idea to hold passive income-producing properties in corporations because of the personal holding company rules. These would basically result in a very high tax (around 53%) on rents from the property. Also, multiple corporations are generally an administrative nightmare. While appropriate in some cases, multiple corps are not useful for holding property.
You may wish to try S-corps or LLCs…check out Bill Bronchicks articles on the subject in the Legal Corner on this site.
John Hyre
Re: More than 1 corporation - Posted by James B
Posted by James B on May 04, 1999 at 16:09:46:
If a person has more than 1 building, say 3 buildings, should that person have 1,2,or 3 corporations?
James