All Forum Posts by: Janet Behm

Gina,

Excellent question. That was an ambiguous answer. 

The short answer: All of the above.

1. Keep your personal and business accounts separate. You want a paper trail every time you take a draw from your business. You want to have a paper trail every time you put money into your business account.

2. It is wise to have a separate entity for each property. There is an obvious liability benefit. At tax time (or even just good money management), knowing the income and expenses for each property makes it easier for bookkeeping, profit and loss calculations, liquidating a property, and preparing your taxes. If you use a tax preparer (which I recommend--but even more have a tax strategist), they will need to prepare a balance sheet. A balance sheet means that all the income and expenses are accounted for and NOTHING IS MISSING.

BTW, Thanks for following me. I appreciate the support and encouragement!

Jorge,
powerfully stated, concise, and actionable. You sound like a valuable mentor to your investor friends. 
An additional footnote to having each property in it's own entity: Segregation of Funds. 
If you want to drive your tax pro nuts...well, we don't need to go there. 
Well written! 
I'm now following you.

Alert!!!
Read the entire note. The title is a little misleading...
We recommend registering your corporations and LLCs.

Kerry,

Thanks for the feedback and

ENCOURAGMENT! 

Janet

Andrew, 

I have had some questions about this post.

The title of this post may be ambiguous. 

I want to confirm that this is a temporary situation with the BOI.

Previous injunctions have been overturned. Only one remains and is likely to be overturned.

This means it is better to file and not take a chance of missing a surprise deadline.

Warmly, Janet

The injunctions may disappear quickly, and you will be required to file or face heavy fines and penalties for noncompliance.

File all your Corporations and LLCs now.

Remember the BOI (Beneficial Owners Information)?

Still under injunctions, but it is likely to be overturned, and you will have a short window to file. Miss the window and fines and penalties are HUGE.

This covers ALL of your Corps and LLCs!

You are not required to file TODAY. Under Injunction.

It’s likely that the Injunction will be overturned.

BOI (Beneficial Owners Information) is under injunction,

with little warning, a new deadline will be set. It is very expensive to miss filing dates, so file now.

Remember, File ALL of your entities (Corp and LLC).

Watch for updates on this.

As of Friday morning, FinCEN has confirmed that businesses are NOT required to file BOI reports while a court injunction remains in place.

The injunctions may disappear quickly, and you will be required to file or face heavy fines and penalties for noncompliance.

Be safe and file is our recommendation, file all your Corporations and LLCs now.

We will keep you informed about this.

Andrew,

Good for upping your game!

There comes a point where having a real estate-savvy tax preparer outweighs your time learning a new software. 

Search: American Institute of Certified Tax Coaches. Look for a pro in your area. They specialize in getting the most out of real estate investing. 

Disclosure: I am associated with this group.