S. Corp

I think an S Corp is a great idea but pleasd do your research on sub chapter S corps. It is true they are great for taxes and you can put yous LLC under your corporate umbrella. But you dont need either to get started. Just concentrate on your first deal. Much success.

I actually just did find some people getting that call from Tax Club on a tread below. I even saw a lady getting quoted a much bigger price to sign up then myself, I wonder why. I never knew there was so much research needed to be done just to pick out a business name/structure. I kind of understand now why so many people don't start a business even if they think they have a chance to succeed. I would like to maybe get at least one or two deals done before I call back the Tax Club. I am trying to stay positive and think that I can do this Real Estate thing but at the same time be prepared if it doesn't workout.

But wouldnt you want to make sure you started your business right so you would have a better chance of succeeding? Also I think you could find better pricing @ www.legalzoom.com.

Hi Martin. We got that same call from The Tax Club after joining the Academy. We ended up going with them, because ALL OF THIS is completely foreign to us. We know nothing about starting up a business and all of the costs and tax breaks that come with it. What we were attracted to is that they will do everything for us, and even though we have had several setbacks (our first 2 names being accepted, then rejected by CA), they have done pretty much all of the paperwork, etc. for us. It's expensive, though. You could probably find cheaper accountants.

We decided to go S-Corp for some of the reasons listed above. I have to say, I have some peace of mind knowing that we are incorporated and don't have to worry about damaging our credit or being personally sued (worst case scenarios!). We are working on getting corporate credit, too, which will help in the future. (We have had NO LUCK getting corporate credit cards so far, because they want to know how much revenue our company generates! UUMMMMMMM, NONE YET???). We're still working on that!!

I played around with Legal Zoom yesterday and there prices are far below Tax Club's . I am guessing that they do all the work themselves also but not sure. One question that I had regarding S. Corp is that it said something about shareholders obtaining your income/loses, something like that. Forgive me but I am not very knowledgeable when you start talking stocks and shareholders. Does anyone know what that could mean? I don't want to share my profits with no one , not even the IRS but thats inevitable.

S. Corp is a good way to go. I also received the call from the Tax Club. It was very useful information, but expensive when you're just starting out. Anita gave you a cheap alternative that works well. I don't know where you are located, but you can also try www.amerilawyer.com They're cheaper than legalzoom and they can be your resident agent as well. The only problem is they only serve certain states whereas legalzoom will set up your S-Corp in any state. Good luck.