RE LAWYERS aren't CPA's?

General Real Estate Investing
1

I was told today to form an LLC for my rentals and an S corp for my flips/ SS’s. Where can I get a one stop shop to answer all my questions? more specifically, do I talk to an ATTORNEY then a CPA?

2

You talk to each at the same time and then decide what is best for you. The attorney handles legals issues. The CPA handles tax issues. They work together to find a solution that is best for you.

3

BLL,

Should a RE Attorney be able to set up my entities or should I be looking for an attorney just to handle entity structuring?

Any suggestions appreciated.

4

A real estate attorney is qualified to draft the deed to transfer property. He is not qualified to draft an operating agreement or explain the subtleties of debtor/creditor law or entity law unless he happens to expand his practice in that area. I would find someone who specializes in entity structuring and provides a personal consultation. You can get a DIY kit from the Internet if the attorney won’t discuss your specific situation. You will get the same quality at a fraction of the cost. In any case, your tax expert will need to review the set up.

I would use an incorporation service to file with the state and provide a kit that includes a nice binder of important documents, membership certificates or shares, and a corporate seal. I would then consult with an attorney to actually draft the operating agreement.

5

Thanks for the response.

6
would use an incorporation service to file with the state and provide a kit that includes a nice binder of important documents, membership certificates or shares, and a corporate seal.

geez. these guys charge $1,000 + to do something that in most states takes under an hour.

find someone who can file the paperwork with the state, get you a tax ID number, prepare tax elections as necessary and give it all to you in a big manilla envelope for $250 or less plus the state fees.

You can buy a binder at office max and you will never ever use a corporate seal. LLC’s don’t have “shares” or “certificates.”

7

I’m talking about those hundred dollar web sites. Anything more than a few hundred is a rip off unless you get face time. I have big issues with the cookie cutter, doc mills that charge several thousand.

I actually use mine quite a bit and recommend that everyone stamp their meeting minutes and resolutions with it, especially when a small or one person operation is involved. It goes a long way with keeping the corporate formalities intact.