LLC questions
First off, I spoke with my CPA regarding an LLC and I'm wondering if she is correct regarding the taxes on an LLC. She stated that if I were to buy and sell a property under an LLC that the entire gross amount would be taxed. Example, buy house for 200k, sell for 250k, taxes are paid on 250k not the 50k profit. This can't possibly be true?
I don't think an LLC makes sense on a cost and time basis and I don't think it will really protect me that well if I do ever get sued. I'm just getting started in RE investing and haven't done any transactions yet. I do have a 1 million umbrella policy on my home owners insurance but i've always had that. I would rather spend a few more bucks and increase this policy then deal with the hassle of LLC's for liability reasons alone.
My last question, and this may change my mind on an LLC, would it be possible to have an LLC setup so that my wife and I are both members, I'm allowed to do everything in the name of the LLC without her also signing off because she works full time, yet have all LLC profits paid in her name for tax reasons? Never had an LLC so I apologize if this is a stupid question. Thanks.