Question For John Hyre - Posted by DAVID

Posted by David on July 24, 2003 at 19:50:22:

A great example of what I’m trying to get at is the Citigroup (logo a red umbrella). Grant it I do not know the in’s & out of there corporate structure. Can a real estate company/business have the same corporate structure or philosophy. I would have to assume that this corporation that has many dimensions to its business where as some of those businesses are LLC’S, S-Cords, and are incorporated in and of themselves but still belong to The Citigroup.

I hope that I am clear as to the corporate idea that Im thinking, I am totally trying to learn the in’s and out’s of these entities. So that when I go to set something up I set it up correctly.


P.S. As always I could be corrected!

Question For John Hyre - Posted by DAVID

Posted by DAVID on July 23, 2003 at 24:25:08:


First is the motivation of supposely having the potential of profiting multiple of millions of dollars the reason among others for forming a Corporation. When I think about it the reason to cut taxes is to increase profit, logically thinking over the years this increase in profit will turn into multi-millions, Right?

I’m wanting also to know is “double taxation” in and of itself bad? As I understand it you could “pass through” a lot of your profit as expenses, and taxes would not be an exagerrated “issue”, please dont get me wrong I DO NOT LIKE paying taxes like the next person. The question I ask to myself and accontant is; How can I not pay taxes Legally?(Reciprical)

Last question could you have a corporation that would be like an “umbrella” of some sort to other business needs accomplished better through say and LLC?

Re: Question For John Hyre - Posted by JHyre in Ohio

Posted by JHyre in Ohio on July 23, 2003 at 06:47:54:

Your question is either hard to understand or very broad. The short answer: First, check out my How-To article on choice of entity. Entities are usually used for asset protection (all of them) and to reduce taxes (usually corporations). The entity that serves you best will depend on numerous details…type of business (e.g. - flips, rentals, etc.), how you spend your personal money, etc. You can use lots of techniques (e.g.- retirment accounts, accelerated depreciation, etc.) to lower your taxes, but completely eliminating them is a rarity.

John Hyre

Re: Question For John Hyre - Posted by David

Posted by David on July 23, 2003 at 09:46:53:

On the latter “…eliminating taxes completly is a rarity” could you please explain.

I really do not like the idea of creating “individual” entities for accomplishing the buisness goals of Real Estate investing.(i.e. For Every flip or wholesale deal there is an LLC setup). I guess what I’m thinking is I could start a corporation that “births” entities such as LLC’S

Corporations: Kingdom Enterprises- “A Real Estate Aquisitions Company”

This Corporation Births
Total Home Solutions LLC- “A Real Estate company that specializes in all real estate problems” Be it forclosures, Behind on payments, junkers, etc.

This same corporation births

Kingdom Finance LLC "A Real Estate Company that specializes in Lending Money as a Private Investor

I don’t know if I’m Being Clear.

Can my business goal or investing goals be “consolidated” into one Entity, if so which one gives me the most head room to do so?

Thanks for Your help.

Re: Question For John Hyre - Posted by yshNJ

Posted by yshNJ on July 24, 2003 at 12:52:18:


Correct me if I’m wrong, but if you have all of your LLC’s or entities owned by one super-entity, than doesn’t that violate the “don’t put all of your eggs in one basket” rule. I guess my broader question is this - Suppose you have LLC(A) as the sole member of another LLC(B). If someone were to sue LLC(B), could they instead go after LLC(A) under the presumption that LLC(A) owns more assets…or am I off track here?