Posted by Del on January 29, 2002 at 16:55:38:
I too think the lawyer is looking more to pad his pocket more than to do anything constructive for you. If your interested in some good books relating to business structuring send an e-mail to structuringbiz@hotmail.com
S Corporation - Posted by cal
Posted by cal on January 29, 2002 at 14:52:18:
My lawyer said that I should set up a separate S Corporation or LLC for each rehab house I do and then dissolve the corp or LLC once it is sold. He charges about $800 to set up a corp, $600 to set up an LLC, so this could get expensive. It is necessary to do it this way, or is one corp or LLC okay for all the houses I intend to rehab and resell?
Re: S Corporation - Posted by Gary
Posted by Gary on January 29, 2002 at 17:58:25:
i bought a book at the mall bookstore, “how to incorporate” by Michael Diamond & Julie Williams. It covers ‘s’ corps and LLC and has all the forms necessary to do it yourself. Don’t waste your money on a lawyer.
Good Luck
Gary
Re: S corporation - Posted by del
Posted by del on January 29, 2002 at 16:41:03:
I agree with the Idea that if you’re working on one(ish) house at a time to flip, One entity should be fine. I would think it would a Hassle closing business every other ?.
Setting up multiple corps might be a consideration maybe if 1) bought properties with a potential higher financial (liability) risk, whether you kept them or flipped them.
a ski resort in Colorado has incorporated each one of its ski runs.
2) Decided to hold multiple properties to rent, hold or develop. Could be better to have your eggs in multiple baskets instead of just ONE. (Asset Protection- not having everything at risk)
Re: S Corporation - Posted by Craig (IL)
Posted by Craig (IL) on January 29, 2002 at 16:34:38:
JHyre is right. Setting up a corporation is too easy to pay a lawyer all that money. What I did was speak to my CPA. He “advised me” how to do it myself for something like $50.00. He saved me time because he new the most serviceable way to do things. I think your lawyer gave you poor advice.
Re: S Corporation - Posted by Robert (NC)
Posted by Robert (NC) on January 29, 2002 at 15:32:02:
I’m not an expert, although I do play one in my dreams… but I’d think as long as you work on one home at a time, you wouldn’t disband the LLC or S Corp… specially if you wanted to have the LLC pay for advertising, car usage, and other expenses…
but everyone sets things up just a little differently…
Robert
Re: S Corporation - Posted by JHyre in Ohio
Posted by JHyre in Ohio on January 29, 2002 at 15:29:59:
One suffices just fine. Get a lawyer who is more interested in giving cost-effective advice, as opposed to generating easy fees. Furthermore, once he sets up the first one, the follow-ups (or at least the ones that do nothing more than hold properties) should be identical…in short, you could set them up yourself with a much cheaper review by an attorney.
John Hyre
Re: proof reading glitch - Posted by del
Posted by del on January 29, 2002 at 16:46:16:
Sorry about a few missing words in my previous thoughts. Message would dump, when using Back button, trying to correct it.
Del
Re: S Corporation - Posted by cal
Posted by cal on January 30, 2002 at 10:15:38:
Talked to my accountant and he gave me the same advice you all did. One LLC or corp will do. He also said I could set it up myself with a book or through accountstreet.com or one like it. Thanks for the advice. I’ll be looking for a new lawyer.