LLC , Limited Partnership??
Hello, I have a few questions that I would love some feedback on. I'm a newbie investor looking to get into business with my Step dad (who is a contractor) specifically working on rehabbing properties. I do the leg work, and he uses his expertise to buy, fix, and sell. What company should we setup. A LLC, or a limited partnership ?? I want it set up before we actually have properties to look at, how would I go about doing this.
Any info. would be appreciated. Thank you very much !!
We are relatively new to the rehabbing game as well. We have an LLC that my husband and I are the sole members of. We have a contractor we have "partnered" with that does the work that is above and beyond our areas of knowledge. He gives us a fair price and when the job is finished and it's payday, we always pay him more than he bills us. He's happy, we're happy. If a rehab comes in over what we expected, we just pay him a smaller "bonus." If we come out extra good, we give him more of a "bonus." This situation might not work for everyone, but it works out very well for us -- and him.
[addsig]
I would recomend looking into a S- Corp for properties that you will not hold onto for long in order to help limit your social security taxes. This is better explained at ****Must Reach Freshman Investor status before posting URL's*** under Choice of entity 101. Best of luck
Now that I am an exsperienced Freshman Investor the web site is http://www.realestatetaxlaw.com under articles "choice of entity 101"
[ Edited by JohnNH on Date 02/14/2004 ]