“On the flipping end, an S-corp is probably the way to go, though that assumes you are earning less than $85,000 or so in salary and other social security-taxable income”.
When you say 85K, do you mean from wholesaling, my 60k a year phone company job, or combined?
How do I get your questionaire?
Also, you as a tax attorney based in Ohio, do you act in this capacity for RE investors in other states or what? I am in need of a CPA. As I have stated, I am starting out and am in need of a CPA/Tax Attorney on my team.
Bought your KISS package, love your work. I am interested in forming an entity in MD for quickCash Real Estate Deals.
I will wholesale housing to rehabbers, (assignment of contracts,double closings and such). I will probably purchase property and rehab myself as I aquire capitol from wholesaling. If all goes well I will General Contract or sub contract for other rehabbers as my construction background accurs in a whole new light. This is the progression as I see it today.
My question: Is there ONE particular entity that I could do all of this through without conflicts in Taxation or otherwise? Or would differant entities be wiser in any of these three differant stages/strategies?
Posted by JHyre in Ohio on August 01, 2003 at 20:10:49:
Depends, as always. The larger the revenue/assets associated with each respective line of business, the more likely a new entity will justify its cost for each…so size does matter. On the flipping end, an S-corp is probably the way to go, though that assumes you are earning less than $85,000 or so in salary and other social security-taxable income. On the rehabs, depends on the game plan. If retail sales, then put em in the S-corp. If buy and holds, I’d probably still keep them in the S-corp (assuming that they do not produce taxable losses) given MD’s new $300/year LLC fee…normally I like to see rentals in an LLC, but the extra cost may not be worthwhile until you have some serious mass. I’d separate the construction business from the wholesaling/retailing/renting, as it is the highest risk business…probably an S-corp, but details do matter here.