Entity Type for Note Business

[Bryan O.]

Are there any general guidelines for what type of entity is typical for a note business? Outside of notes, you typically do your buy and hold in an LLC, but your active work (wholesaling and flipping) in some type of corp. Is there any similar scenario with notes? What do you use? I am buying NPN.

[Dave Van Horn]

Hey @Bryan O.

To answer your initial question: LLC.

And to Michael's comment above, I think the reason Wayne is suggesting that (outside of the liability protection) is because working NPN in your IRA account is an unnecessary risk. You're not really supposed to be working the assets owned in your IRA since you personally benefit.