As most real estate investors know, there are a lot of “little challenges” to overcome when starting a new business.
If you’re serious about taking the right steps in the beginning, one of the first things you’ll want to get squared away is the legal formation of your business entity.
Most real estate investors (myself included) own their properties under the name of an LLC (aka – Limited Liability Company) and there are a few reasons why:
– An LLC can protect your personal assets from business-related lawsuits.
– An LLC has tax advantages that allow for “pass-through taxation” (whereas most other corporations are double-taxed).
– An LLC offers instant credibility with many of your customers.
Now let me be clear… I’m not trying to advise you on what type of legal entity you should form for your business. I’m not an attorney or an accountant (and even if I was – I have no idea what your goals and business objectives are). I’m not saying that you should copy what I’m doing in the instructions above, I’m just showing you one of the many ways it can be done.
Forming your own corporation may sound like a complicated legal process, but it’s actually quite simple and you can do it in a matter of minutes.
With an online service like MyCorporation (see above), you can avoid the mind-numbing minutiae of trying to figure out the process in your state AND save yourself hundreds of dollars by allowing them to walk you through the process.
An alternative option is to hire an attorney, since they can give you the best advice and make sure everything is being fine-tuned to fit your situation, but if you’re on a shoestring budget (like I was in the beginning), a service like MyCorporation is probably your next best option.
Here’s a quick overview on how to do it… #realestate #retipster #sethwilliams #realestateinvesting #landinvesting