Posted by Bill K. (AZ) on March 30, 1999 at 21:19:30:
Abby,
I’m not anymore awake today, am I? As you noticed, I addressed my answer to Marcy! Boy, what a ding-dong. I’m sorry.
I THINK my advice is good?! 
Bill K. (AZ)
Should I incorporate to do lease options? - Posted by Marcy
Posted by Marcy on March 29, 1999 at 08:03:33:
Hello everyone,
Just have a quick question - I’ve decided to specialize in doing lease-options for now but would like to eventually own a few rentals of my own. My question is, Do I need to form a corporation to do Lease Options? Also, never thought about it, but should we get a business licence before getting into the lease-option business??
Thanks for any help and advice!
…Marcy
Thanks everyone! - Posted by Marcy
Posted by Marcy on March 30, 1999 at 10:40:39:
Thank to all for the advice and suggestions!
…Marcy
Re: Should I incorporate to do lease options? - Posted by breeves
Posted by breeves on March 30, 1999 at 07:32:40:
See the Legal Corner section. Its about the third to last question in that section.
Re: Should I incorporate to do lease options? - Posted by JHyre in Ohio
Posted by JHyre in Ohio on March 30, 1999 at 06:08:46:
Marcy,
From a tax perspective, it depends. If you will be reinvesting your profits at a high rate of return and will not be dividending the money out, a corporation makes sense. Otherwise, you are probably best served by an LLC. The above of course depends on all the details involved.
John Hyre
Re: Should I incorporate to do lease options? - Posted by Rob FL
Posted by Rob FL on March 29, 1999 at 20:57:29:
You usually don’t need a business license for real estate activities unless you have an office open to the public. If you are just doing your own deals, it is doubtful that you need one. Call city hall and ask them. I verified with my city that I don’t need one for landlording.
Re: Should I incorporate to do lease options? - Posted by Bill K. (AZ)
Posted by Bill K. (AZ) on March 29, 1999 at 11:26:23:
Marcy,
If you are interested in protecting your personal assets, it is always a good idea to use another entity, corporation or limited liability company, to handle your real estate investing transactions. So, while you don’t NEED to form a corporation or LLC, it’s a good idea if you are going to own multiple investment properties.
Most cities require you to obtain a business license prior to conducting any type of business in their city. The process is painless and inexpensive. I had to fill out a 1-page form and pay a $35 fee to get registered.
I hope this helps.
Bill K. (AZ)
Re: Bill:What info is necc. on the form? - Posted by Abby
Posted by Abby on March 29, 1999 at 12:40:46:
What info do we put down on the form?
What I am asking is what are the BEST answers to the questions asked?
And if a beginner, with no completed as yet transactions, is there a BEST way to answer ??
I Don’t Follow Your Question - Posted by Bill K. (AZ)
Posted by Bill K. (AZ) on March 29, 1999 at 12:47:39:
Abby,
I’m sorry. Perhaps I’m not fully awake yet today. I don’t understand your questions in the context of this thread.
What information do you put down on “what” form?
You want the BEST answers to “what” questions?
I just don’t get it. But, then again, it wouldn’t be the first time.
Ask again, and I’ll try to answer in more detail.
Bill K. (AZ)
Had your coffee yet? - Posted by Michael Murray
Posted by Michael Murray on March 30, 1999 at 20:13:58:
Bill,
Abby was asking about the statement you made in your previous post “I had to fill out a 1-page form and pay a $35 fee to get registered.” Re-read your post and you shall say, Ah Ha!
Michael
Ah Ha! - Posted by Bill K. (AZ)
Posted by Bill K. (AZ) on March 30, 1999 at 20:47:05:
Michael,
I must have been drinking decaffeinated coffee. Thanks for the clarification.
Marcy,
I don’t know where you live so I’m not sure what questions your city will ask when applying for a business license. My city asked for the name of my business, a “dba” if I’m not using my company name in public, my business address, what business I’m undertaking, and the name of the contact/owner. They also asked if I was disposing of any hazardous chemicals. That was it.
There are no BEST answers to the questions, only honest ones. The questions aren’t tricky, and they aren’t designed to keep you from getting a business license.
I hope this helps.
Bill K. (AZ)
Re: Thanks From ABBY - Posted by Abby
Posted by Abby on March 30, 1999 at 20:58:38:
Thank you for your reply.
Abby