Getting Setup PROPERLY - LLC, S-CORP, C-CORP?

General Real Estate Investing
1

I am just getting started in Florida, and need some solid advice.

I have read that you should use 2 seperate companies, 1 for rehabbing/wholesaling/short term flips. and another for rentals/long term flips.

I also read that an LLC is not an S-CORP nor C-CORP, but something you use along with a corporation? ???

Finally I read that you may want to hide your companies in some fashion, perhaps putting the business in someone else’s name? ???

Anyone have an explanation of the process?

Cheesy Example:

  1. get tax ID
  2. get LLC from web
  3. get sub corp for LLC,
  4. etc

UPDATE: I just got smart and read this: http://www.reiclub.com/articles/choose-proper-entity
Very helpful, seems I don’t need to stop business over it, figure it out as I go with an attorney/CPA.

Thanks for the help, REIClub rox!

2

I went to a sem\inar this weekend that suggested that yu set up an LLC for passive income (rentals, flipping properies, etc…) and an S-Corp for Active income (ie Property management).

I.E Rentals:
You purchase the property and after 90 days deed it over to your LLC. Your renters pay your property management company (S Corp) and your Property Management companies pays your LLC.

3

I am not an attorney, however I have several entities in which I work. From one for private lending, a few for buy/hold of properties and another for Wholesaling/Flipping.

I attended a presentation about a year ago at which Donna Fox, an attorney, spoke. She gave a very informative and detailed presentation about utilizing multiple entities to keep the tax advantages and liablity positives off all forms while all but eliminating the negatives of each entity.

You can get the audio to that presentation, I believe called PREMES, at this location: http://www.wcrt.org/?Link=education

The ideas made complete sense, and I think it is a worthy item to have.

Hope that helps!

4

I also started a investment company just wondering about setting up a LLC and where would i go to have that started also getting business credit or grants,loans

5

Incorporate & Grow Rich.

This is an excellent book on the subject you are interested in; I believe it is only about $12.00 bucks on Amazon. When I was stateside, I remember I was very happy with what I learned and the way the book was presented.

Best of Luck,

Mammon.