:rolleyes We are newbies and are trying to start a business. We have started out wholesaling. Would it be in our best interest to get an LLC or a CORP? We would like to save on taxes and gain money with our business. Does anyone know the best place to get one? Please reply back any info you have. Thanks for your :help.

It doesn’t matter at this point unless you have assets to lose. I would focus on getting the checks coming in first and then getting an asset attorney involved once your making money. I’d worry about it after you do a few deals or so.

Just for future reference, you would want to go with the LLC. Because LLC’s profits are taxed straight from the members (owners) personal income taxes. This is going to prevent double taxation on your profits… Also if you are planning to ever hold property, look into creating what is called a series llc. The series llc allows you to separate assets from each other. So if you get sued from one tenant, your other properties are safe.

C-corps only have double taxation if you take the money out as dividends. You can create benefit programs that are tax deductible to the corporation and tax free to you. It’s not really appropriate for a newbie since you need excess cash to build the business, but it’s a great way to take out money tax free when you are in the late stages of your investing career.

Series LLC are available in only a few states and are untested. They shouldn’t be used until there is clear case law on how they will be treated. Stick to more traditional methods that have extensive case law to support the intended use. Judges will rule on what they think is fair. If the law disagrees, they will interpret it so that it supports their decision.

Don’t mean to hijack a thread but I am looking into creating an LLC so I can write off some of my expenses. This brings me to the simple question…

Do I need to form an entity to write off business expenses? I have read that I can file as a DBA (Doing business as) and do the same thing?