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?
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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.
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