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Author Topic: Should i form an LLC or Corp?  (Read 2351 times)

Offline aatikajerry

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Should i form an LLC or Corp?
« on: May 08, 2006, 12:38:33 pm »
Hello, I am new to real estate investing and i was wondering, is it mandartory to get a license when rehabbing a certain amount of homes. I was told if you sell more than a four homes per year you would have to get a license i live in the state of GA and is it just plain and simple to just form an llc or Corp?

Offline mcwagner

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Re:Should i form an LLC or Corp?
« Reply #1 on: May 12, 2006, 03:32:52 pm »
I don't know about the GA license question.  

And, yes, it's simple to form an entity.

You want an LLC for asset protection.

Corporate stock is considered an "investment".  As such it is subject to be awarded to satisfy a judgement.  In the event you are personally sued, this would leave your adversary owning the stock of your corporation and therefore all of its assets.

Member interest in an LLC is considered personal property.  As such is cannot be awarded to satisfy a judgement.

Both a corporation and an LLC protect you from the company's liabilities, but only the LLC protects the company from your personal liabilities.

You should NEVER own investment property as a sole proprietor.  As such, any liability from the property would put your personal assets at risk.

Mark Wagner, CPA, LLC
Certified Public Accountant
http://www.facebook.com/MarkCWagnerCPA

 




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