Wholesaling in multiple states. Taxes, Corporations...

[Eddie Starr]

I've some questions about one of everyone's favorite subjects: taxes and the IRS. I am NOT looking for "legal or similar advise," as I know that can't "be done." I just want to hear what others who've done such business have done for their businesses.

For those who have wholesaled in multiple states, do you use a C-corp, LLC, S-Corp, LLC-S-Corp, LLC-C-Corp, or something else? Do you have a "Master Corporation," and then a separate corporation for each state you do business in? Or do you have your corporation(s) where you do the bulk of your business, and then, for where ever you do a few deals, simply register as a "foreign entity?"

For those that opt to have multiple corporations, do you have someone you know as a registered agent, or do you pay an annual fee to a 3rd party? If the latter, who do you use? Has www.myllc.com or freeregisteredagent.com been good? Any you would avoid, or recommend?

[Steven Hamilton II]

Originally posted by @Eddie Starr:

I've some questions about one of everyone's favorite subjects: taxes and the IRS. I am NOT looking for "legal or similar advise," as I know that can't "be done." I just want to hear what others who've done such business have done for their businesses.

For those who have wholesaled in multiple states, do you use a C-corp, LLC, S-Corp, LLC-S-Corp, LLC-C-Corp, or something else? Do you have a "Master Corporation," and then a separate corporation for each state you do business in? Or do you have your corporation(s) where you do the bulk of your business, and then, for where ever you do a few deals, simply register as a "foreign entity?"

For those that opt to have multiple corporations, do you have someone you know as a registered agent, or do you pay an annual fee to a 3rd party? If the latter, who do you use? Has www.myllc.com or freeregisteredagent.com been good? Any you would avoid, or recommend?

The main thing to do is look at using that same corporation and registering it in each state you are doing business. Yes, you will need a registered agent in the states you do business in. This is how most operate.

Most operate as sole proprietors until they have completed deals since most of the income is subject to self employment tax as it is from person services. The next thing I will mention is those that operate as a different entity typically are not operating their company appropriately when they engage me and then I need to coach them to use their company appropriately and not commingle and to use proper payroll etc.