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Jennifer Jackson
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Anderson Advisors - C-Corp

Jennifer Jackson
Posted Jul 6 2022, 08:54

Hello!

I live in Minnesota and am a new investor and new to everything.  I am confused and unsure of what to do.  I am trying my best to educate myself, but when there is conflicting information, I second guess everything.  I signed up as a Platinum member with Anderson Advisors.  They seemed to be highly recommended and know real estate investing, taxes and asset protection.  I was advised to create a C-Corp because I am currently in a Chapter 13 (I don't have enough to pay off my Chapter 13, so please don't judge or ask questions about that).  I am simply looking for advice on the structure of my business.

I created an LLC and am in a Partnership agreement for a Flip I am doing in Tennessee using my LLC. The LLC is not on Title of the property. I am only a Capital partner and provided $20k in funds for Interest and Holding costs. We are looking to sell the Flip, but with the turn in the market, it may not sell as much as we had planned. So, we may have to turn it into a Rental or she may buy me out. It all depends.

I also purchased Digital Real Estate and was also advised that I use the C-Corp for the passive income for this business as well.

I do want to do more flips in the Future and eventually have Rentals as well.  

Anderson told me it would be best to create a C-Corp because I am in bankruptcy so that any money I made would flow through the C-Corp and would remain in the C-Corp.  But, when I talked with my Accountant, he didn't understand why I would use a C-Corp and explained that I would be double taxed if I would take out any money.  He said eventually, I will need to take money out.  So, now I am confused as to what I should do.  My accountant seemed very frustrated with me and asked more about Anderson and what training I was going through.  I have sent my Accountant the information I learned from Anderson and what they advised me to do.  I just want to do what is best to protect myself and do things the right way.  

Does anyone have advice or experience with Real estate investing while in a Chapter 13?  Or whether a C-Corp would be a good move or not?  Is there a way to avoid double taxation?  This is all so overwhelming to me and I don't know what to do if my Accountant and Anderson are saying different things.  I am leaning towards doing whatever my Accountant says I should do. Any advice would be appreciated.

Saint Paul, Minnesota

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