Meeting with an Accountant Tomorrow

[George Moehlenhoff]

Basic point of the meeting is what my best route to go to protect myself once I start rehabbing. LLC, S Corp, etc etc...

Any reccomendations on questions I should ask?

[Bill Gulley]

Hi, sound like you are going to a bean counter/tax guy for a legal question, cn you see an attroney? While us bean counters are familiar with many legal issues, setting up the right entity really should be accomplished with both profesionals. And, it is worth it.

I advocate insuring against possible risks, and if you have a considerable amount of assets, use trusts. In your area judges are more liberal than in mine and it may be hard to know which way the wind blows, so I'd definetly be insured.

A good insurance broker/agent can help you assess your risks. What you plan to do in real estate will also make a difference. Landlords have inherent risks of tripp and falls, consequential damage from the result of poor maintenance, etc. Rehabbers may have paint overspray on the neighbor's car, so assess your risks and insure accordingly, IMO.

LLCs can be useful to limit liability, but if not properly maintained, you can lose this protection easily. New investors usually don't go with a corporate structure because of double taxation and employment requirements, but if you don't have health inusrance, or other retirement benefits, that might be an option for you.

Bottom line, I suggest you see both, an attorney and an accountant. Good luck, Bill