Deciding on Getting into Real Estate?
There are many aspects you would have to take into consideration when forming a real estate business. What is the sole purpose? Do you want to hold on to your investment for short-term or long-term purposes? Well, CPA Nerds can help lead you on the right path when setting up your new business.
What Kind Of Entity Is Your Business?
The big challenge would be the type of entity you would like to set up as. The three types of real estate entities are Limited Liability Company, Limited Partnership, and S Corporation. Each has its own benefits based on the purpose of forming the entity. Do you want to hold the real estate for the long term and collect profit from rental fees? Or are you in the business of flipping real estate? Are you the sole owner, or would there be multiple partners involved?
We Love Real Estate Accounting
Forming the start of your business is crucial to accomplishing your short-term/long-term goals. The CPA Nerds can help guide you through this process to maximize tax savings and make your plan a reality. Oh and we own our building and have outside tenants, so we speak with experience!
Limited Liability Company
A limited liability company (LLC) is a business structure in the United States whereby the owners are not personally liable for the company’s debts or liabilities. Limited liability companies are hybrid entities that combine the characteristics of a corporation with those of a partnership or sole proprietorship.
A limited partnership exists when two or more partners go into business together, but one or more of the partners are only liable up to the amount of their investment.
An S Corporation is a corporation that meets the IRS requirements to be taxed under Chapter 1, Subchapter S of the Internal Revenue Code.