This subject will come up within your real estate investing, and I want to give you my personal experience and how it can work for you. The question is asked as far as what is an llc, and how is it used in asset management. I personally choose to register my properties and care for them within my LLCs, which is a business structure specifically created because the tax benefits and regiments of C or S corporations were not business friendly and expensive, where as the sole proprietorship allowed total liability to any frivolous lawsuit to your personal asset. Great minds went into thinking about this structure, and its quite easy to obtain the benefits of them, so it is my personal choice.
Please choose whatever structure works with the level of protection of your personal asset as you like, and remember: Many of the insurance coverages will have a liability policy in case of lawsuit. That is to be used in conjunction with the business structure set, within the name of your business.
Having a separate business entity also gives you a little more firepower when claiming deductions to the IRS, which will be a big part of your real estate business when investing. Remember, rental income is one portion of the equation, tax deductions and tax liability exemption in your own personal paycheck (as losses/gains can pass through to you) is another important aspect of creating these structures.I will be doing more of these on the business structure, stay tuned. I am actively searching for Virginia real estate lawyers and accountants that I can speak with, to give their perspective.
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60 minutes did a report on Nevada state LLC’s because they offer so much protection so foreign investors and crooked dictators from other countries take advantage of them. My research has brought me to the same conclusion. I will start a LLC here in Texas next year which is comparable for the same reason. Love your vids *subscribe*
Texas is a GREAT business friendly state, and I am sure you will do well. The LLC structure is in itself AMORAL, but if you’re crooked or straight you can all use an LLC for your purposes. Nevada business structure was really created for people who used business structures to protect themselves, thus they have great “layers” to keep you from liability. Thank you for subscribing! And, feel free to ask me anything, we’re at the close and personal stage 🙂
Oh my what great information! Thanks you sooo much for this video. I am a newbie to investing & you have buy far the best no BS videos on YouTube. Thank you for your sincerity & you labor, it has not gone unappreciated. I hope I do not become a pest because I can tell I am going to need your expertise on certain things if you don’t mind. I will make sure I do my diligence before I ask a question. But for now I just wanted to say great video, keep them coming, & blessing to you and yours!
Great.
– Since it will be my husband and I in the business so, we would be
considered as a Partnership?
– Do I need to chose PLLC or just LLC?
– My husband and I will need an Operating Agreement?
– I am watching on YouTube, do I have to go to your website to find the
links you mentioned you would attach?
Thank you.
Dana Nicholson
NicholandSons Real Estate
Thanks for a great video. I have a LLC and a umbrella policy for a single
home rental property. I would like to move into 4 to 6 unit apartment
rentals.Have you explored the possibility of layering an LLC? In other
words Using one LLC to hold another? Or is it best to create a separate LLC
for each building?
Very informative video. I have a few questions though: Should I incorporate
on my very first real estate deal, or wait until the money starts rolling
enough to handle all of the legality of incorporating an LLC? Once upon a
time, I incorporated an LLC based in Nevada via PO box. This is about 10
years ago, I became negligent with it and forgot about. Should I try to
search a revive it, because of “establishment” value? I was thinking about
starting with a parent company LLC holding corporation that creates a
subsidiary LLC for each real estate property endeavor. What do you think?
ive subscribed to a lot of channels. Im still convinced this is my current
favorite. im learning a lot. thanks!
All of your videos are extremely informative and helpful thank you so much
for the free info 🙂
So so so so informative and simply stated
Love the video