All Forum Posts by: Verna M.

Hello, 

I really really REALLY want to operate as sole prop. I live in Ca with high LLC fees Id like to avoid. I've run other sole prop businesses and I am very familiar with the paperwork required so I feel comfortable with that to start.

However I am newly married and I was revisiting the tax laws for sole prop run by married couples. I am in a community property state if that matters.  My husband currently is a stay at home dad, he does no work outside the home and has no income at this time. However  he is a key player on our team. He's the  handyman and carpenter, as well the good cop  ;) 

So from what I was looking at on the IRS site if we own the sole prop as a married couple we have to file two Schedule C and both pay the self employment tax?   This seems expensive. If Im going to pay that much, I might as well pony up $800 to the  FTB for year for an S-Corp.   I do like the idea of making my parents shareholders in my company if I can. I won't have them as partners! And for 800 bucks a year I'd rather go corp, as in Ca a RE broker can only be an S corp And that is the path I am on at the moment.

Or my alternative is to run sole prop and either hire my husband as an employee or contractor. I also like that idea, because I can open up a 401k for him. However this causes payroll taxes and more paperwork.   I can do payroll paperwork but I know I hate it. 

I am trying to figure out the cheapest way to do this to start.  I am worried that if I try to run sole prop, dont include him in the biz  the IRS is gonna nail me because he has no job besides stay at home dad.   He won't be working nearly as much as me, maybe a 75/25 split.   

Do most couples in a JV open an LLC?

totally off topic but when I was selling a house I had it listed at 400k. i got an offer with an EM check for $400. 

its so funny because I took the  check,  shredded it up, put it on the photocopier and made a picture of the shredded up the check.  I tried to fax it back to the buyer's agent as my way of saying no. 

what's even more funny was I declined their offer without even a counter offer. (it was a piece of s*** offer) and they sent me two more offers stupid people

thankfully my agent at the time wouldn't let me do that. she probably saved me from many lawsuits but it makes me wonder about so many of these things I read on bigger pockets.  and it just makes me laugh. it also makes me miss the way we used to do business in my old gig. We would just tell it like it is

its not a great house at a great price if noone is buying. 

and I will say that I have been part of neighborhoods changing for the better. 

however it's not something that can be easily done it would require moving into the neighborhood and an effort spanning years. and you can't do it alone you need other neighbors on board. it's not easy to gentrify the neighborhood it's not something you do it's something that happens. at least if you're close to the sheriff station it will discourage criminals and people with warrants out

whereare  the younger families buying homes and price your home under that. And hope y they will come and make it better. 

sorry!

THANK YOU!!!! Inflation is enemy number one, it's the silent killer I never see mentioned here or hardly anywhere.   The risk of being under water on a property is much less terrifying then the cost of living going up faster then then the value of money.  They have manipulated the CPI, that's not the true inflation rate. 

I was a homeowner with equity during the 07-08. I had my HELOC shut down or I would have bought the house next door to me that went into forclosure. For cash money!

 Since then it's been cheap money and tight lending laws!  The fed is wants  all the winnings for themselves since they own the all the banks! 

I was going suggest moving into the property and then renting out his primary residence. Which would hopefully be cash flow positive and then allow him to pay the HELOC off faster. And at least not be underwater.

Then I saw "killings" and that idea got tossed! Good luck Glen!

I started saving my allowence to buy candy in bulk and re-sell it to my classmates when I was 10.  

When I was 16 I wanted to be in a band but couldnt afford instruments or lessons. So I did anything I could to be around music,  which was live sound.  I started doing parties and small shows. I found my way into recording studios with bands and was hooked. 

After high school I decided to give it a shot and skip college. I saw my brother paying back student loans and I was not interested in that! I got a job at a recording studio answering the phones, and worked my way up to engineer in a year.  

When I was 21 I borrowed 25k (on credit cards!!!) to open my own recording studio out of my house.  I later moved it to a different location. 

I worked full time  and then ran the studio as a side job. Right after I turned 25, I landed the job of my dreams.   I shut down the business so I could have a steady income and buy a house, which I treated as a live in flip. I planned to reopen the biz but I never did :(

Then my life became work and DIY!

Waking up every day excited about what I get to do. Not depressed about what I  have to do. 

if I can do it in jeans, t shirt and sandals even better. Then I a consider that a full  WIN!

It IS a journey and I want it to be a doozy.  Life is what you make it, and it can all end any day. If it's not fun, it's not worth it. You just have to find the joy in the hard parts. 

I really don't think this is good advice.   I am just wondering if anyone else would do this?  I am sure a buyers agent would LOVE this set up and why not?! 

If you are inexperienced with paperwork and contracts DO NOT let the other party of the transaction "make up for it".  Let alone  PAYING them to do it. 

If you don't know enough about the deal to be able to look after your best interests, then you shouldn't be doing the deal yourself.   A buyers agent will have no fiduciary duty to you and will for their buyers.  A buyers agent's JOB is to get the BEST deal for their buyer.  This is not someone you want "making up" for your lack of experience and writing up a purchase agreement, counteroffer or anything else.  

To each their own.   Different things work for different people, and what is demeaning to one person might be a weight lifted off another's shoulders.