Looking for local (NJ) paid business structure entities advice.

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Looking for local (NJ) paid business structure entities advice.

Ralph Palma
Member since 2019 · 7 posts · 0 votes

Hi, some experience real estate, moving now to more business like structure. Have the real estate lawyer side, but looking for pay advice on how to setup the business structure, where it will have asset protection & anonymity for either a partnership or single member. Can anybody recommend such person/company in NJ (sussex, morris, warren, passaic county) Thanks.

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  • Jason MalabuteBusiness Member
    Accountant · Los Angeles, CA · Member since 2016 · 2k+ posts · 906 votes
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    Most investors in your spot choose between a single-member LLC if it's just you, or a multi-member LLC taxed as a partnership if you're bringing in a partner. In New Jersey, an LLC generally protects its owners from the LLC's debts, but it isn't absolute, so how it's set up and run matters. An S corp election is a tax choice, not extra protection, and a CPA should run the numbers before you take on the added filings and payroll that come with it. For taxes, a one-owner LLC is normally reported on your personal return, while an LLC taxed as a partnership files its own NJ partnership return, Form NJ-1065.

    One heads up on anonymity: I wouldn't count on an LLC for complete privacy, so ask your attorney exactly what shows up in the public filings in NJ today.

    How many properties do you own right now, and will anyone else be on title with you? The right setup depends on your facts, so talk it through with your own CPA or tax advisor.

    Malabute & Company CPAs525 Reviews
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  • Ralph Palma
    OP
    Member since 2019 · 7 posts · 0 votes
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    Hi Jason, thanks for this update. That's why I post here to see if anybody know or can recommend a tax advisor/cpa in my area. Thanks again

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  • Joseph ScoreseBusiness Member
    Banker · Philadelphia · Member since 2009 · 2k+ posts · 637 votes
    4d

    Hi Ralph,

    Good question. I work with real estate investors throughout NJ and PA, and this is something that comes up quite often, especially when investors start growing their portfolios or bringing in partners.

    My suggestion would be to speak with a business attorney who understands real estate asset protection, along with a CPA familiar with investment properties. You want to make sure the structure makes sense not only from a liability and tax standpoint, but also when it comes to financing, refinancing, and future acquisitions.

    One thing I've seen over the years is investors setting up multiple LLCs without considering how those entities may affect their ability to obtain financing down the road.

    I have relationships with attorneys, CPAs, and other real estate professionals throughout New Jersey and would be happy to see if I can make an introduction.

    Are you looking to restructure properties you already own or set things up for future acquisitions?

    Feel free to message me directly. Always happy to connect with fellow NJ investors.

    Joseph V. Scorese
    Built Lending | Nationwide Direct Private Lender

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  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
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    Ralph, that makes sense. Since you already have the real estate attorney side covered, I'd have the CPA involved before you finalize the structure so the legal and tax planning are working together. The right setup really depends on what you're planning to hold and how you expect the business to grow. A single member LLC, partnership structure, separate entities for different properties, and an S Corp election can all have very different implications depending on the activity.

    I’d also look beyond the initial tax treatment and think through how profits will be distributed, how partners will contribute capital, how the entities will be maintained, and what happens when you eventually sell or refinance.

    The anonymity piece is worth discussing with your attorney as well. An LLC can provide privacy in some circumstances, but I wouldn't assume it provides complete anonymity.

    Feel free to DM me. I’d be happy to share a few resources and connect if it would be helpful.

    [email protected]941-914-7779
    INVESTOR FRIENDLY CPA®5240 Reviews
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