This is one area I struggle in. I think I’m great at finding a deals, researching the properties, working the numbers but I can’t seem to grasp what type of entity to set up and why?
I’m looking into purchasing an apartment bldg in the next couple months. Should I work on setting up an LLC or C-corp now? Or wait until I purchase the property? If I wait, would I just tranfer the property into the business name?
Here are a couple more questions:
- If the business is not set up can I still write expenses off?
- I set up the business in the state the property is located, correct?
- Income tax - if you live outside of the state you purchase - Is there double tax or anything I should be aware of?
I’m really considering investing in Texas, but just read about the franchise tax. What is the best entity to set up for Texas properties?