My plan is to start out flipping homes and then gravitate to more of a buy and hold strategy and then eventually into some land acquisition and developing. Also, my purpose for the legal entity is for legel protection. I am guessing that certain legal entities work better for different situations. Right now I am an S-corp. What are some of the disadvantages of this type of entity for what my future plans are?
I favor both, that is an LLC taxed as a corporation. Especially if the LLC has more than one owner so it qualifies for the better protections available as a result of partnership law and multi-member LLCs in most states and partcullarly if your LLC taxed as a corp is formed in Nevada and that LLC then owns other LLCs, trusts, companies, etc. to hold the actual properties.
You will have the problem of the double tax if you were to distribute income from the LLC taxed as a corporation in the form of dividends. The solution is of course to distribute as little as possible to yourself personally and allow the capital to build in your LLC and use it to loan to your subsisdiary companies/entities.
Anyone?
Thanks John. I appreciate your input.
My plan is to start out flipping homes and then gravitate to more of a buy and hold strategy and then eventually into some land acquisition and developing. Also, my purpose for the legal entity is for legel protection. I am guessing that certain legal entities work better for different situations. Right now I am an S-corp. What are some of the disadvantages of this type of entity for what my future plans are?
Thanks again.
Nate
I favor both, that is an LLC taxed as a corporation. Especially if the LLC has more than one owner so it qualifies for the better protections available as a result of partnership law and multi-member LLCs in most states and partcullarly if your LLC taxed as a corp is formed in Nevada and that LLC then owns other LLCs, trusts, companies, etc. to hold the actual properties.
You will have the problem of the double tax if you were to distribute income from the LLC taxed as a corporation in the form of dividends. The solution is of course to distribute as little as possible to yourself personally and allow the capital to build in your LLC and use it to loan to your subsisdiary companies/entities.