Posted by Branden on May 08, 2000 at 11:54:47:
I’d recommend using trusts and an LLC from the beginning. If you don’t use entities you are a sole proprietor and everything you do exposes you to everything you own.
Branden
Starting out - Posted by Ken R
Posted by Ken R on May 08, 2000 at 08:27:52:
We are ready to make a few offers after attending a guru seminar and going to our local REI meeting.
My wife and I are concerned about protecting ourselves and see that most REI use either a LLC or a Trust. I checked with our state ¶ and have most of the documents ready to form a LLC to get started.
Could anyone tell us if we are going in the right direction and is this really the best way. I think an LLC is a good way to go and take advantages liability protection and tax.
Ken
Re: Starting out - Posted by Branden
Posted by Branden on May 08, 2000 at 10:28:39:
Use a combination of trusts and an LLC. The trust is used to title the property. Title every property in a different trust. The beneficiary of the trust would be the LLC. The LLC usually does not offer any tax benefits, just liability benefits. The IRS does not recognize a single-member LLC, which you and your wife would be. Everything flows through to your personal return (Schedule E), unless you elect to be taxed as a corporation, which I wouldn’t recommend. You’re on the right track, but I would highly recommend Bill Bronchick’s courses. He has one on trusts, another on corporations, and another on FLP’s & LLC’s. His courses are complete with all the forms you’ll need.
Branden
Is is neccessary on your first couple of deals? - Posted by SteveA (FL)
Posted by SteveA (FL) on May 08, 2000 at 10:53:13:
Or only when you start holding properties? I’m planning on doing rehabs, one at a time for this year.