Hello All. My name is Ernie and I am proudly a newbie. You have to start sometime. I have been doing a lot of research, Bigger Pockets is amazing. I've just started listening to the podcasts on my commute. I feel strongly about forming a business and flipping homes, having multiple rentals, and other parts of the business. My question is with setting it up. I recently spent time in a 3 day seminar and when it came to this area, they advised setting up a Nevada LLC for the rentals, and an LLC-S for the flipping. Can anybody weigh in on this? I was thinking of an LLC, but am I too early for this? Should start with it?
I look forward to your feedback. Thanks.
Forget the Nevada LLC. Most states will require you register your out of state company, so any privacy is gone.
An S corp or LLC taxed as an S corp can save you some money on Self employment taxes but won't help if you have passive income that doesn't require that anyway.
An LLC can help limit your liability but that is not near as great a factor as you would think. This is especially true for small companies where you do most of the management yourself.
This is a complex question talked about here often so a search will bring up a ton of info. However use that info to help you talk more intelligently with your legal and tax professional. Everybody is different and needs a different solution.
Thanks Ned Carey and Michael S. Helton for the great advice. I was thinking that was the way to go, but it great to hear it from experienced investors.