I’m currently looking to get into investing in real estate and I was wondering, should I form a simple solo proprietorship company to keep income from rentals and expenses separate? I know the profit or loss will flow onto my personal tax return but just to keep everything organized and it maybe also help with investors?
I know people who do it both ways and so I’d like your option on what you would do.
One thing you can easily do is to open up a separate bank account and do business just using that account. It's easier to keep track of your expenses that way. It's OK to start investing in real estate without a company.
Right. I was thinking that. But also with a simple business like that you can right off expenses like quickbooks and more?
This post has been removed.
Got ya. Thanks for the help guys!
You can always start as a sole proprietor and then form an LLC when things take off a bit. Account Closed is correct, your risk tolerance and current asset values should factor into that decision.
Got it. That was sounding like the way to go.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing