Partnerships and Business Entity

[John Patrick Lantin]

Hi Everyone, some quick context before I ask some questions: -my dad is looking to invest has some capital and I have the credit and a small amount of cash as well as also doing all the work (finding a multifamily/small apartment deal, talking to brokers, property management, etc etc) -we are looking to split the income from the property (80/20) and also get the corresponding tax deductions in the same ration Questions: 1.) Should we setup an LLC or LLP prior to purcchase? I was thinking this is the best thing to do and then have a contract written up in the business entity clearly stating our revenue split as well as responsibility for any liability 2.) Any commercial lender referrals from the community here at BP? Thanks for helping this newbie out! :) -Patrick

[Nathan Click]

@John Patrick Lantin - Generally my clients go with an LLC. It is a very simple structure, most lenders expect it, for the most part its tax optimized, and usually its cheap to set up. Keep in mind it is a state entity only. You'll still need to file an SS-4 with the IRS and draft an operating agreement. I'm happy to discuss any other questions you have on the topic feel free to connect.