Posted by Glenn on December 10, 1999 at 17:26:53:
The double taxation comes for C Corporations. S Corps and LLCs are pass through, although you are able to select otherwise.
Glenn
To form LLC or not? - Posted by mark
Posted by mark on December 10, 1999 at 11:08:38:
I just spoke to my accountant today and we discussed tax consequences of forming an LLC or filing as a sole proprietor. I’ve been in real estate investing for 4 mos. and currently have one duplex(rented), and one house for sale. Already assigned one deal away(thanks Bill Bronchik!).
I own an excellent book on how to form own LLC in my state(includes all forms)and through the postings on this site fell I understand the ramifications of owning real estate in your own name. My situation is I am still currently a 9 to 5 employee with great benefits and the ability to do real estate at my job. The liability issue is my obvious concern, I keep hearing Bronchik’s words of never own in your name!!!
As a sole proprietor, I still get all the writeoffs(except health and dental insurance, for me not a concern), so could I not get a business umbrella policy over and above my current landlord insur. to cover my assets? If I form an LLC with the different bank account, would I not be taxed twice, once on the capital gain, again when I went to pull money from the company for personal uses? I understand the protection issue, but I am a little confused as to the overall benefits as I could easily have considerably more assets and money in my LLC than my personal accounts.
I am sorry for the long post, I tend to ramble, but any help or insight would be greatly appreciated!!!
Re: To form LLC or not? - Posted by Rob FL
Posted by Rob FL on December 10, 1999 at 13:45:31:
The IRS allows LLCs to be treated as a “non-entity” for income tax purposes. Any income/expenses passes through to the taxpayers personal return. However, you can still get all the benefits of an LLC like asset protection and privacy.
additional questions to the above - Posted by Bill
Posted by Bill on December 10, 1999 at 12:59:49:
I am even more confused after reviewing John T Reed and his response to the Rich Dad Poor Dad book, specifically on LLC’s.
Any books on exist strategies that are recommended?
additional questions to the above - Posted by Bill
Posted by Bill on December 10, 1999 at 12:54:11:
I am even more confused after reviewing John T Reed and his response to the Rich Dad Poor Dad book, specifically on LLC’s.
Any books on exist strategies that are recommended?