Hi Folks,
I was out with a realtor, and I told him I would begin investing after establinshing an LLC. He said, “Oh so many ppl do that. Do you know how hard it is to get money out of an LLC?”
(well, no I don’t)
How hard is it? Why is he lamenting? and How do I get my money out?
Thanks,
CC
An LLC is a pass through entity. You can take all your profits out. Go to a bank and open your LLC a business checking account. You can loan your LLC money to operate on.
If you plan on doing this full time. You might want to get a C-corp. That way you can use management fees to pull all the profit out. The reason you would want to use a c-corp is your Corp can write a lot of stuff off on its taxes. Have your C-corp pay you.
Do you go to your local REI club. If not, there is a link to your left. Keep reading the post and go to your club. Talking with like minded people that think “How can I do this” instead of “I can’t do this”
I am not an attorney or a CPA. You should talk to both and have them on your team.
;D
I hope this helps
Bruce
Bruce,
I love “how” questions. That and “What” have changed my whole way of thinking. I used to think I was optimistic in the past, but asking those 2 questions give me focus and steam. Like-minded ppl are one of the golden keys to success.
Thanks, my real-estate investing friend.
CC
I recently started an LLC for a real estate project and in the LLC operating agreement there is an article for disbursements. The article basically reads “The Members will determine when and how cash and other assets of the Company will be distributed”. Since this is a pass through entity I don’t think its as difficult as your realtor makes it out. I agree with Bruce, talk with an attorney and CPA.
Typo: S-corp and not C-corp.
No typo. I like a C-corp rules better.
Bruce