Sole Proprietorship or LLC?

Rob, another thought: You are wise to pursue forming an LLC (L.P. would work also) if you have a non-spouse partner. It could be dangerous to be in a partnership with a percentage ownership, or tenants in common, since the investment could be attached if either partner gets sued and a judgment results. With an LLC, both (or all) the members/managers could be required to sign documents, a percentage ownership can be established, no general partner is involved, and it would be difficult for any lawsuit to harm the assets. Something to check with your attorney for more details in your state. Good luck.

cactusbob

Thank you to everyone for your inputs on the my question. I contacted a real estate attorney and here was his answer to my question " I would have to open a Federal LLC to not have the interstate business BUT that is time consuming and not exactly cheap. My best bet would be to open the 2 local LLC’s , 1 in each state. Cheaper and faster…"

Hope this helps anyone that has a similar delima.

Just to add my two cents in, i think you have a hard time getting the seller to agree with you if you do a lease option and then assign the house to someone else. Your better off do the assigment and skip the lease option part. Just find a buyers and assign the deal to him or her and then wait to collect your fee. Good luck and happy investing.

Lloydsap

Anyone ------I love the DG stuff and wonder if it's a better or as intense course--what the cost difference might be---what the plan difference might be--is there a money back guarantee--which do you think. Does anyone have a hands on experience or know anyone who has had--please, let me know asap--I'm ready to leap!

I took John's coaching program, it was all done over the phone, when I had questions I had to email them and waited days for a response. I had two sessions then she left and I had to start all over with a new one, who in my opinion didn't know as much. I wouldn't recommend it, put your money into a course that offers a money back guarantee. That's my experience, for what it's worth.

has a warranty/guarantee. If you do 5 deals within a year (which they help you with) you can be refunded ALL your money in return for your success story. I know of at least 2 people who post in here that have already had the experience of this. I am working on my deals now, and am certain of getting my refund.
Hope that helps.

Rina

When I complained about my coaching, I never got a response from anyone with John Beck's organization. That should tell you something.... LOL!

How do I write up or structure a investor agreement.

I have investors that would like to invest into by real estate flipping process but how do I put it in writing, where both parties sign and agree to the amount invested and the amount of return they should receive from the investment?

I have been trying find an example document so I could see how its structured.

I read a lot above LLC, but i also read the advise of Dean about his preference for the corporate, because in this one you can deduct (almost ) everything by charging the company ( car , insurance ,tools, etc...) so that you diminish taxable benefits.
I think that in the LLc you don't have this possibility and de facto you have to pay full taxe on your bussiness...
In that case, how is it most of the beginners run whith a LLC ?
Thank you to clear me about this important subject.

jean

When you get ur answer could you post it up because im on the the same road you are

I thought that an LLC was the way to go, but after talking with an advisor from the TAX CLUB, the S-Corp is the way to go. Your taxes are cut by at least 2/3rds. In addition, you have protection from lawsuits. As your business grows you create LLC's underneath your S-Corp. Your S-Corp now becomes the parent company. You have LLC's for certain types of property. For example, single family homes can go in one (less risky) then apartment buildings can go in another (a little more risky) and so forth. Cash Flow was spot on when he said don't have too much value in each LLC and to have insurance above the value.

KimmyJ

Thanks for the insight. The Tax Club called last night to set up an appt for next week, so these are questions I will pose to them as well. Is this the same as "incorporating"? What about forming an S-Corp in Nevada or Delaware because you hear so much about the advantages to doing business from that state, or is that something completely different?

The internet seems to be flooded with incomplete information about starting LLC's or S-Corp's out of state. They seem to be selling that there are certain tax benefits based on the state in which you file. As listed above Nevada and Delaware seem to be popular. I have a few questions.

1. Would I avoid tax on the income going through the LLC or would I have to file it anyway?
2. If the LLC or S-Corp is out of state will I have to pay local State fees (i.e. California's $800 yearly tax) when I file for as an alien entity in California?
3. Does it really work having an out of state LLC or S-Corp?
4. Are these answers different for LLC's vs. S-Corp?

I am just starting out with the books and the ITS training so bare with me please as this is all new to me, thanks.

I have a LTD registered company in the UK which was basically setup for self employment 10 years ago. I still file taxes etc. and I actually transfered ownership of my ex-marital home into the company to protect it from ever being sold from under me. The question is would I be able to use the company here in the USA.

If anyone has any comment or advice please let me know, thanks again!

Where do i find a title company rep and what kinda people do i need when im just focusing on doing finder fees for right now because of my finacial situation and i just want to be on the right track and doing things right so that when i call people i'm saying the right things, i get the butterflies and it's scary sometimes by me being new but with the right leadership and advice i know i can do it i'm a excellent learner with a great teacher.Also what is CPA.

Thank You
Mrs Anxious To Succeed
Sareena Saulter
biz.opp.empire@****

How do you join the tax club and where.

www.taxclub.com
or you can call them to get a free tax assessment, which will help to identify itemization which your business may be neglecting. Then, we will explain these differences in dollars and cents. Whether or not you choose to use us as your tax partner, this assessment will help to save you money, can call them at (877) 829-2582.

I always go with the SCorp. It is better for your taxes. Also, you can establish the LLC, but you have to file within 78 days to opt to be taxed as an S Corp.

Yuri

I just started doing this. I am learning as much as i can about the real estate business. I am a single mother of five and unemployed at the time. I attend college full time. I don't know exactly how I am going to provide for my family. Needless to say I am going through it right now. I see you have alot of things situated right now and I believe you could help me. I reside in Houston, Texas. I need to succeed at this!! My family depends on it. Failure is not an option!

Sincerely,

Demetrius

I am glad that u want to make a better life for you and your five kids and also going to college the same time. Just keep on reading dean books a few times and also use this website for support. Good luck ! you are right that Failure is not an option!

Warm regards,

Paul T. La Moy

Ola,
I read all about this CORP.thing and i will tell you (checking my EGO at the door)it is not taxes,Your greatest liability...Will be people!!!What makes us so strong, Has the power to break us down...As owner's.
I think "W" said it the best;If you think you should pay more tax...Then send it,WE WILL ACCEPT IT.
I will tell you something right now which you should know "Not all people pursue...Liability! Are you going to take that chance,NO! The best you can do is too blanket yourself with Multi-coverage and Yes,Stay missing when the time comes! Happy Buying and Selling;Friend/REI

What is the difference between a series LLC and a regular LLC

Thanks so much for the boost of confidence...I really needed to read that right now...!!!

HOPE THAT GOING TO HELP us WITH ARE FIRST DEAL WE HAVE Investors that his LLC and he going make us partner in jan. 2010 jimmy

I bank with Chase and they will help with an LLC for free. I still have to pay State filing fees but that's it. I think they are hoping to get a business banking, account out of this too...I am very new to Dean...my books were just shipped.lol.

I will double check on that when I have the books on hand.
TY!

I heard that S corp was best from a man that called me right after I signed up for the help

I read about your concerns about bussiness entities. A real good provider
on the subject is: Corporate Service Center. their site is
CorporateServiceCenter.com thier # is 1 800-638-2320. and they have a
special going on right now so call them and give them a try.hope this
info helps good luck!

I was hoping to get my question answered without posting a question but just to be sure. I have a co-worker who has five rental properties and all the banks he has visited will not allow him to take out another mortgage for anymore investment properties until he sells some. Is that maybe because he does'nt have a LLC or what? ST. Louis,MO Need Input THX

Rina,

Have you had any problems trying to find a mortgage broker that has lenders that will allow you to get a mortgage under your LLC? I live in CT and have been calling different mortgage brokers to find out what lenders will allow this. We are looking to purchase a multi family under our LLC. We already know we have to put down 25% for a down payment. I am working with a real estate agent and she will also make some calls for me to see if she can find a lender as well. Let me know your thoughts on this. Thanks!