Hi Fellow REI-ers, I'm very new to Real Estate Investing - still at the pre-purchase stage. My goal is to buy a rental property and then, later on, buy additional rental properties and possibly get into flipping. My question is this: Does it make sense to set up a corporation and conduct all my RE business through it? What are the tax and other liabilities/benefits of this approach? Thanks! Greg
Find your 1st property first. That's the most important part. It makes little sense to start incorporate when there is no asset to protect to begin with. Yes, if you have a corp (e.g. C Corp, S Corp), then the tax liability can be different. Right now, your primary focus is to make money first. Based on my experience, those can always be amended afterwards (e.g. moving your personal property into an LLC)
thanks for the reply! I appreciate the feedback!