hi, ive been extremely ecstatic about REI since i was 16… my parents always told me to “get a real job” or “you cant do that” blabla… i am now 20 and for the past 4 years ive been doing lots of research. i pretty much understand and i cant wait to get out there and do it. im just having trouble understand the legal stuff… like.
-do i have to have a business license?
-what do i do about uncle sam, tax?
-do i need a lawyer?
-im very sorry for being a NOOBIE! :banghead
-do i have to have a business license?
Usually not, however you need to know your state and local laws. Join your local REIA.
-what do i do about uncle sam, tax?
Make some money first and then pay the tax. You can hire a tax preparer or accountant after you do your first deal.
-do i need a lawyer?
Yes, but you don’t necessarily need one just to get started. Again, ask the successful investors at you local REIA who they would recommend.
Good Luck,
Mike
“business licenses” - there’s no special license for being an investor.
if you want to negotiate real estate (without owning it or contracting to buy it) - you’ll need a brokers license or a sales persons license and work under a broker [you have to be a sales agent first, then get brokers license].
however, if you buy or contract to buy real estate - you don’t need a license.
now, if you want to work on other peoples homes and fix plumbing or electric - you’ll need the appropriate license or work under someone elses license (check state laws here).
but i’m guessing you just want to eventually buy real estate and either sell it, assign it or rent it - for a profit.
what alot of people on here will talk about is owning your investments in a business entity. check with your department of state website to find out about creating a business entity like a corporation or LLC.
there are also DBA’s - which are county level business entities - you register with the county clerk to “do business as” something other than yourself - but there is no liability protections with DBA.
you’ll have to start reading up on business entities, but don’t get too overwhelmed. it’s always better to conduct business in a business entity other than yourself.
yes you’ll need a lawyer
and as far as taxes - you’ll learn about them as you go along. remember - as an employee of a company, you get taxed first (your employer takes care of that), as an employER or owner of your business - the business makes money first, then pays taxes on what’s left after business expenses.
keep in touch…