Investor · Phoenix, AZ · Member since 2016 · 53 posts · 6 votes
Hi All!
I am new to this forum and am a little overwhelmed by the wealth of information. My goal is to start my private business - a real estate investment company. I am planning to go solo at this point and actually have 40 hrs/week job also.
I would like to invest in buy and hold rentals properties. Currently I have 3 properties in Arizona and got totally lucky acquiring them in 2011-2013. I have the management company that I am over sighting. Well - I am ready to go pro and put myself in charge... maybe not managing yet, but at least understanding the math and strategies, expenses et cetera.
My question to the forum - how do you start an investment company legally and how do you take deductions for education, software, marketing... how about traveling if it is in another state?
Each of my properties is under a different LLC. How do you simplify the above-mentioned expenses?
Below are the links for two podcasts with the guest CPA Amanda Han that are full of amazing information, including some tips how to take deductions on your expenses. And they are fun to listen too. Enjoy!!!
Starting a company can be as simple as beginning the business activity. In other words, many companies are not formally organized LLCs or Corporations, but sole proprietorships. This is the default business form when an individual is doing business in his or her name.
My recommendation, however is to begin with the advice of a qualified tax preparer, such as a CPA who is knowledgable in real estate investment. Such a professional can guide you as to what business form (sole prop, LLC, S-Corp, etc) may be best for you based on the type of activity you'll have and the income level. Liability issues also come into play. The CPA will also be a great person to learn how to take deductions for business expenses. Some deductions will be allowed based on your activity, while others may not.
Welcome to Bigger Pockets, and best wishes to you!
Below are the links for two podcasts with the guest CPA Amanda Han that are full of amazing information, including some tips how to take deductions on your expenses. And they are fun to listen too. Enjoy!!!
Congrats on wanting to start your own business, being part of BiggerPockets is an excellent start.
If your looking for property management tools to help you stay on top of your work from start, I would suggest @Assist. You can try it for free to get a sense of the system and how it would work for you. Let me know if you have any questions!