I realize most of us are not attorneys; however, I'm curious how you set up your individual businesses?I'm looking at it from an asset protection, and business standardization framework.
---- I'm looking at creating a C-Corp for my Property management company (or LLC)
---- When I purchase additional properties, I'd like to consider purchasing them in individual LLC's
Can one purchase properties in personal names, but then run properties thru a management company; thereby, having some form of asset protection (running the $ thru a C-Corp).
Just curious if any of you agree/disagree with this approach? Again, I understand that I'm not receiving legal advice.. just looking for the counsel of fellow real estate investors.
I'm anxiously waiting to see some response as I am in a similar position. I own my properties in an LLC but I'm also building a management business that I suspect should be a separate LLC. Then I plan to expand my wholesale/retail fix/flip business which I believe should be in an S-Corp. I'm thinking that all of this should be put together under a C- Corp but I am unsure yet.
If you are looking for asset protection get a good insurance policy and forget about all the guru hype on LLCs, but you can set up an LLC, but it will not protect you when you are sued.
My wife and I have set up S corps for our businesses, she runs a realty company doing property management and i have a contracting company. The tax benefits work toward our advantages, we both get regular paychecks from our companies. We also hold our properties in LLC's, some say they don't mean anything but its just what we were advised to do by our attorney and accountant.
Appreciate your note @Eric Doud. Great feedback.
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