Llc or partnership

3 Replies

I am looking at purchasing my first investment property but want to make sure all my tax and legal entities are in place My dad will be co-signing on this first loan from the bank so that I can get a better rate since I was discharged out of chapter 13 6 months ago. I am needing to know if I should setup a llc with both of us being members or would we benefit more by making it a partnership? We are looking at buy & hold & also some flips down the road should we come across a great deal where the numbers are right. I will be putting up cash on this first deal & do the renovating & we will put our profit back into the business

LLC . Most flexible. Taxed like a partnership. However, state laws differ, and some states tax LLCs . You need to find that out for your state.

It gets complicated with both family and a recently-concluded bankruptcy in the mix. Your CPA can advise you on the best structure and your lawyer can paper it for you. Good luck.

@Brent Delo , do an LLC or a Sub S Corp. No partnership unless you do a limited partnership and form companies to be the general partners. Absolutely no partnerships. It is my opinion that advising someone to form a partnership without corporate protection is malpractice. Good luck