Quick question.
I’m living in Texas currently and working real estate deals in Hawaii (and may be moving to other markets in different states as well).
Should I get a CPA here locally in Texas or a CPA familiar with Hawaii tax laws?
Also, should I set up LLC in Texas or Hawaii?
I’m new to the whole “entity” thing as well as CPA’s so any info is much appreciated!
Thanks!
As a general rule you want the entity domiciled in the same state as the property, so you don’t have to file returns with two states (the home state and the “doing business in” state).
You will have to file a company state return in HI, as well as file a personal non-resident return for HI.
The HI business income will be taxed in HI irrespective of where you live.
So would that change any if I was 100% wholesaling (aka never actually owning any of the property in my name) or would the same apply?
wholesales need not be done in an entity. If you don’t own investment property then risks are minimal.
however, nothing changes on the taxes. you will still be required to file HI non-resident for HI income.
Thank you very much for the good info!
I appreciate it!