Creating a proper Biz Entity?

This topic contains 1 reply, has 2 voices, and was last updated by Melanie Patterson 5 months, 3 weeks ago.

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🇺🇸🇺🇸 Derek Ian Visslailli 🇺🇸👮‍♂️
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7 months, 2 weeks ago
Creating a proper Biz Entity?
I want to create a Biz Entity where the business will be involved in Real Estate, Real Estate Investments and Holdings etc. Upfront there will be no or minimal “unrealized profit” and no salaries are to be paid etc- at least for the first 5 to 10+ years. What is my best option for a Corporate structure to be set up ( C or S-corp or LLC taxed as a Corp??)- minimizing risk, liability and taxation etc? Single owner for now and money going into the business not coming out. All input is appreciated thank you.
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Melanie Patterson
Moderator

5 months, 3 weeks ago
Hi Derek,
Where you’re just starting out, it sounds like a LLC or LLCs would suit you. How I did it was I created a management LLC to manage my properties, and put each property in its own LLC, plus carried great property insurance.
The management LLC managed the tenants and properties — handling finances, repairs, rentals, escrows, evictions — and everything else. The individual LLCs (I named mine after the streets, e.g. “Smith Street, LLC”) was just the deeded owner of the property and did not conduct any business.
Doing it this way protects your personal assets and creates layers of protection. I would strongly recommend speaking with an attorney AND and accountant, however, because every situation is different and what was best for me may not be best for you.
Also be sure to check out our article on starting a real estate holding company. https://fitsmallbusiness.com/start-a-real-estate-holding-company/
Hope this helps! 🙂
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