Wholesaling and taxes

2 Replies

So I'm just getting started and I haven't bought any courses or anything, but I'm still learning. Are wholesalers considered independent contractors, or do you form some sort of entity ( LLC, Limited Partnership, Corporation, etc.)? If so, which one? What percentage do you usually pay in taxes? Is there any way to set one up without a lawyer? Because I'm broke... Lol

The general rule of thumb that I've seen is as long as you're just assigning contracts you don't need to be any sort of business entity, you can just do things as yourself. If you start doing double closes you'll want to have an S corporation, and if you're flipping do an LLC. Taxes I think are just standard income taxes, I'm not sure so someone with more experience may want to chime in. You don't have to buy any courses to start out, there's enough free information here on BP between the blogs and the discussions that you'll do great. Also don't sign up for any webinars where they talk about giving away free stuff,they'll just give you the basics of their course they're trying to sell. Do listen to the BP podcasts, tthere's a wealth of information you can get for free. Spend any money you were planning on spending on courses, on marketing and gas (look up "driving for dollars," best way to get started without a lot of cash) and ask plenty of questions. We're all here to help, and there's some serious REI rock stars on this forum that are all willing to help. As usual, I'm not a lawyer or accountant nor do I play one on TV. So make sure you consult with one before you do anything.

Originally posted by @Kyle Critchnau :

The general rule of thumb that I've seen is as long as you're just assigning contracts you don't need to be any sort of business entity, you can just do things as yourself. If you start doing double closes you'll want to have an S corporation, and if you're flipping do an LLC. Taxes I think are just standard income taxes, I'm not sure so someone with more experience may want to chime in. You don't have to buy any courses to start out, there's enough free information here on BP between the blogs and the discussions that you'll do great. Also don't sign up for any webinars where they talk about giving away free stuff,they'll just give you the basics of their course they're trying to sell. Do listen to the BP podcasts, tthere's a wealth of information you can get for free. Spend any money you were planning on spending on courses, on marketing and gas (look up "driving for dollars," best way to get started without a lot of cash) and ask plenty of questions. We're all here to help, and there's some serious REI rock stars on this forum that are all willing to help. As usual, I'm not a lawyer or accountant nor do I play one on TV. So make sure you consult with one before you do anything.

Lol  thank you so much for the info. It seems like the resounding response from everyone  is not to waste money on a guru course. Interesting...

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