Tax, Legal Issues, Contracts, Self-Directed IRA

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Danny Ondik
  • Investor
  • Chicago Suburbs
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Real Estate Attorney - Western Suburbs of Chicago

Danny Ondik
  • Investor
  • Chicago Suburbs
Posted May 23 2022, 18:42

Hello,

I'm looking for a real estate attorney to help put my properties in LLC's, as well as opening a S-Corp to oversee those LLCs. Any recommendations on people you trust that I should reach out to? Thank you!

Danny O

Naperville, Illinois

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John Warren
  • Real Estate Broker
  • Chicago
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John Warren
  • Real Estate Broker
  • Chicago
Replied May 23 2022, 19:26

@Danny Ondik yes I can send you my attorney. I would question why you are starting an S corp though? you can just manage your properties in separate LLC's and you should be fine I am pretty sure? What are you trying to do with the S corp?

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Danny Ondik
  • Investor
  • Chicago Suburbs
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Danny Ondik
  • Investor
  • Chicago Suburbs
Replied May 23 2022, 20:26

@John Warren Hi John, my understanding is that there are a lot more tax benefits that I can take advantage of if I have my own S corp? I could be way wrong and that is something that I will be asking a Real Estate Attorney. Thanks for your question - it will cause me to do more research so that I don't go down the wrong path. 

Thanks!

Danny O

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Jonathan Klemm
  • Contractor
  • Chicago, IL
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Jonathan Klemm
  • Contractor
  • Chicago, IL
Replied May 24 2022, 07:52

@Danny Ondik - What do you need the LLCs for?  I know I personally got ahead of myself creating LLCs and business cards before I really had a need for them.  

I always suggest you try to get a business up and running before you take all the steps that cost money instead of making money.  Plus if you don't have a huge amount of assets say $500k net worth it's probably fine to just get an umbrella policy.

We have several Chicago attorneys that could help feel free to reach out for contact details.

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Paul De Luca
  • Real Estate Agent
  • Chicago, IL
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Paul De Luca
  • Real Estate Agent
  • Chicago, IL
Replied May 24 2022, 07:54

@Danny Ondik

Can't you just open an LLC and then have it designated as an S corp for tax purposes?

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John Warren
  • Real Estate Broker
  • Chicago
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John Warren
  • Real Estate Broker
  • Chicago
Replied May 24 2022, 19:05

@Danny Ondik here is your problem. You aren't going to get the information you want from a real estate attorney. The attorney will help you set up your business properly and follow all the laws. They will also help you minimize your risks and exposures to lawsuits, etc. 

You are talking about an accountant/CPA. A tax professional can give you good advice on how to set your business up to minimize your tax obligations legally. 

The issue of course, is that these folks all cost money. What others are saying on here is that you first need to build your portfolio and then once it is big enough to need to be protected you would build your team out. I wouldn't waste a lot of time building your team before you have something for them to do.