What type of Business Structure should I use?

Question

I own a rental property with a business partner, and we plan to buy more soon.  We need to set up a business structure, whether it be a General Partnership, LLC, LLP, C-Corp, S-Corp etc.  What do you guys think the best business structure would be for us?  Thanks.

Account Closed · Answer

HAH, yes I have a very good accountant, who has experience in many areas of business including real estate.

He too gets his jollys off by reading tax codes!!!!!  Last year, he sent me home with some reading material on dividend taxation lol.

Account Closed · Answer

Thanks Nick, I will ask my CPA when I get my taxes done, I'll check that book out too.

Nick J. · Answer

on that note, make sure your CPA isn't the 'dude' at HR block!!

gotta make sure he understands real estate investing!!

Don't educate your CPA to do their job.

My CPA has real estate investments and owns the commercial building his office is in and rents out the other suites.

He's also the type who get's his jollys off by reading tax codes at night.

you can understand why I hired him

Nick J. · Answer

it's going to be tough to get any kind of advice like that here, most people will simply say 'speak with an attorney'
            
            if you plan on buying buy/holds your best bet will be LLC.
            
            if you plan on having frequent large sums (short sales, wholesale etc...) s-corp would be better........

But...............i'm not an attorney so don't take my advice as such. Find yourself a 'better' than competent attorney/CPA
            
            Also read a book called: Lawyers are Liars by Mark J Kohler.
            
            he's an attorney/CPA and that whole book is about asset protection which is the other thing besides taxes when it comes to determining what business structure you'll want to use.