Setting up LLC with CPA tomorrow, what should I ask?

3 Replies

I am meeting with a CPA/Attorney/Real-estate investor tomorrow to determine the best business entity to start for my real-estate business. I have a list of questions that I will be asking, and have her review my first potential deals numbers. I was told by my realtor and long time family friend to consult with her as my business takes off because of her many angles of experience. I would like any suggestions of questions that any of you wished you had asked when first starting out.

The most important question I would ask them is to explain their definition of "Intention" and how they think it relates to dealer status and passive income. If you hire them have them memorialize their definition.

Then I would want to know how many of either they have accomplished personally or had a controlled interest in.

After that which is better a Trust, LLC, S Corp or C Corp for either and why.

That should start a good conversation.

You'll want to be prepared to let them know what your plans are. If your flipping, then generally they will suggest an S-corp. If they don't then I would ask there reasoning for another type of entity.

If your going to be renting properties, then generally they will suggest an LLC. If they suggest another entity I would ask what there reasoning would be.

In some cases it is better to form to entities so that you can separate various types of real estate investing activities.

Thank you for your responses! I have a list of questions that I will be asking tomorrow, I just wanted everyone at BP to help me think outside the box. I will be investing in rental properties.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

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.

Lock We hate spam just as much as you

Join the Largest Real Estate Investing Community

Basic membership is free, forever.