Posted by dutch on May 02, 2006 at 08:21:36:
A dba is different than a corp. Tax questions are much too complex to answer here, a competent CPA should be able to give you tax advice. Setting up a LLC or Corp to do this business IS SMART, but not necessarily for tax reasons, but for liabilty reasons. Sometimes the best for liability is not the best for taxes, and vica versa. One typically chooses the best option for both worlds.
If you are just starting, USUALLY, the best option is to start a LLC or S-Corp and do business under that entity. Once you get bigger and cash-fatter, then start to worry more about taxes and liability. And then you can afford better advice that what I just gave you.
Dutch
OKHomesavers
should i get a dba - Posted by stevenCA
Posted by stevenCA on May 02, 2006 at 01:00:30:
hello all, i pretty new to rei im just wondering does getting a dba help you with taxes at the end of the year, as far as write offs and being taxed on your profit. i heard that if you purchase everything as a corporation you are not taxed as much on profit vs. purchasing as an individual.
Re: should i get a dba - Posted by John
Posted by John on May 02, 2006 at 08:23:35:
A trade name or DBA does nothing for you as far as taxes go. Only filing for an enity such as a LLC, or corp. will change your taxation method. See a good CPA and or attorney to help you decide which is right for you.
Just starting out, do a couple in your name first. Pay the taxes. It is just a cost of doing business. After you have done a few deals then look to saving on taxes with use of enities.
A self directed IRA should be considered also.