All Forum Posts by: Christopher Smith

Hi there! Stats say that if you are an investor for more than 10+ years, you have a 90% chance of being sued at some point. For long term investors, its not so mcuh of if you will be sued, but when. While insurance is a good first line of defense, it is not conclusive. Insurance companies are a business and inside of that looking to mitigate costs. In doing so, they will often find reasons to not pay out on a claim. If thats the case for you, you want a true line of defense in a lawsuit - thats where an LLC comes in. An LLC separates you from your business so that if your are sued, your personal assets arent at risk. Using an LLC not only provides liability protection but can open up opportunities for you for working with 3rd parties such as lenders or partners who require an LLC. If your LLC is set up correctly, the operations and financial pieces of it can be minimal and easy to manage.

Hi, looking for some advice on being a NYC resident and investing in Ohio. Should I also consult a tax specialist in Ohio or just NYC? Also, any recommendations for tax specialists in NYC who are well versed in RE investments? I find that many of the ones I have spoken to aren't that well versed. Thanks so much. 

A single member LLC is a disregarded entity. As for the taxes, there is a thread that was created by a CPA. Maybe you can get your tax answers there.

Ask me (a CPA) anything about taxes relating to real estate (biggerpockets.com)

@David Shuman

Hey David,

This seems to be a controversial topic as some people believe you don't need one, and others believe you do. I am in the belief that absolutely you should set up an LLC. From a tax perspective, legal protection and ease of business, I prefer it. Also, if you are looking to scale and purchase many properties and units, you're going to have to set up an LLC so you might as well just set it up right from the beginning.

Hope that helps!

Tyler

Hello! 

I closed on my first rental property in the last few days of 2021 - it's a duplex in Ohio, and I live in California. So I've been told my taxes will be a little more complex this year. I've filed with Turbo Tax in the past and had a good experience, even with some freelance work in addition to my W-2, but I understand the out of state property will add some hurdles to the process.

Would love to hear from other real estate investors experiences with Turbo Tax when owning a property. I'm leaning toward continuing to use Turbo Tax, against the council of some of my friends who have hired someone to prepare their taxes for them.