Incorporation State

General Real Estate Investing
1

Hi all, I posted this topic in the beginners fourm but was advised that this fourm maybe a better place.

I am starting a real estate investment business, and I live in WA. The properties I buy and sell will likely be in WA in the first couple years. I was told by a professional tax company that NV is the best state to incorporate in since NV does not have any form of business tax while WA has B&O tax which taxes on gross receipt.

I was told that if my company is a NV company, I do not need to pay WA B&O taxes on buying and selling properties in WA, and I will not be subject to other state’s tax law if I ever buy and sell in other state. Is that true? It just sounds too good to be true to me.

He did confirm that if I buy a property in WA and rent it, it’s subjected to WA tax system, but not buy and sell.

Does anyone know anything about this? Thanks!!

2

The company is wrong. Any business conducted in WA is subject to WA taxes and laws. NV is a great place to set up if you conduct business in NV.

3
but not buy and sell.

otherwise known as “dealing” or “flipping” is taxed at the federal level as any other business that buys and sells inventory.

I’ve never dealt with WA taxes, but I’m pretty sure they tax businesses that buy and sell inventory.