Wholesaler · College Station, TX · Member since 2012 · 20 posts · 1 vote
From the initial training I have had, I understand that it is best to have multiple corporations set up for individual strategies. One for Buy and Hold Investments and one for Fix And Flips. I also understand that it is best to have an umbrella company own the others for asset protection. My question is, which of these companies do I start incorporation and a business plan with? Since I am starting out, I am looking at wholesales and rehabs first. Do I start with the umbrella company then start the fix and flip company as a sub company? I am feeling like I am trying to solve the old chicken or the egg first question. I do not wish to start out without having a business plan and preferably incorporation (I.e. LLC) in place.
Flipper/Rehabber · Austin, TX · Member since 2009 · 405 posts · 168 votes
13y
I was told the same thing. Looking back, I was clearly oversold - I have an LLC I've never used. Eventually I will get to the point where I will put my rentals in there but it's been 4 years now.
I recommend you wait until you have assets that need protecting. It's OK to do one or two deals first and decide if this is right for you.
Involved In Real Estate · Murfreesboro, TN · Member since 2013 · 14 posts · 1 vote
13y
Hi Kendra J.,
I believe you and I are at the same stage in this venture. I too was wondering in what order to approach this. I've done a lot of reading on BP and other places and have concluded that establishing the initial LLC then adding as necessary as the businedd expands. I am no expert so I thank Jean Norton for responding and welcome others to chime in.
Wondering how to register your organisation in Ontario? Then Ontario Business central will help you with the legal formalities & procedures as they helped me out with all the legal formalities when I was in need! Hope they Help you as they were to me!
Residential Real Estate Broker · Kitchener, Ontario · Member since 2014 · 687 posts · 370 votes
7y
I also incorporated too many companies originally. I ended up using all but one of them in the end. If I was doing it again today I would start with one company and have it do the ownership as needed for the first deal. Then if the 2nd deal is a different type and needed to be held in a different company - then set up your 2nd company.
You can set up the companies yourself at the local consumer affairs office or you can pay a paralegal to set them up with all of the proper binders that you will need in the future.
I had Carol Johnson of EZ Corp set me up with the proper corporation books and requirement at very affordable rates. And my lawyer keeps my Incorporation binders with him.