New RE business in OR

2 Replies

Hey BP!

I am getting ready to submit offers in oregon. I am partnering with a contractor on the initial deals. As far as creating a business, the only thing I did was create an Inc. online through the state secretary. I have not done any IRS stuff. Should I start my first deal as myself or my business? If my business, what should I do prior making RE offers? Would I partner as my business and the contractor on paper? My business doesn't even have a bank account yet :-/

Thanks BPers!

Joe

Hey @Joe Mendoza - speaking from personal experience, I'd try to get the biz stuff set up before going too far. It's a mess to fix later (trust me.)

Also - the way you set stuff up at first can have huge tax ramifications later. For example, you may have to pay double taxes if you use the wrong entity, so I'd pay the couple hundred bucks to sit down with an attorney and CPA (or find someone who is both!). It will be the best money you could invest!

Medium fbprofileBrandon Turner, BiggerPockets | http://www.BiggerPockets.com | Podcast Guest on Show #92

@Joe Mendoza

as long as your partner is a licensed GC and is on title you have the licensing covered... If he is not on title then you would need a Developers license along with a bond and insurance.. There is no test for these but it does cost money and the insurance is pretty expensive as well, but just the cost of doing bizz

Medium ksqoekox 400x400Jay Hinrichs, TurnKey-Reviews.com | Podcast Guest on Show #222

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