S-corp, C-corp, or LLC for Real Estate? Best Legal Entities
Which one will work best for your business model, whether your real estate rental holder, a house flipper, a wholesaler? An S-corp, a C-corp or a LLC for Real Estate?
What are the best strategies that you can leverage for the business that will help you keep the money, tax-wise, in your pocket to continue to invest further? We’re going to talk about LLC, sole proprietorships, and even corporations, and Jennifer is with us again today. I’m going to open up the floor and let Jennifer Kirkland share her knowledge regarding all of those different legal entities. We’re going to start with what people know and hear about the most, which are the LLC’s. So LLC’s, they stand for a Limited Liability Company, and I’ll let you take it away.
Jennifer: Limited liability companies are the most popular because it’s the newest in the industry of the types of entities and my opinion I believe it’s one of my favorites, but every structure depends on the individual. Consult with your attorney or CPA, but LLC’s, the beauty about LLC’s is that you are not personally liable. Let’s say it’s just you starting a business and want to do a real estate investing business.
You don’t want to be sued personally. The beauty of an LLC, a Limited Liability Company, is that you can put that property inside of the LLC. What the IRS calls an LLC is it’s a disregarded entity. It’s an entity separate from yourself, but the beauty about it is that it’s a flow-through and what flow-through means is that it’s only taxed once.
Lucy: You’re saying that if you have an LLC, you will pay taxes only on the LLC, and then whatever’s left out of it, let’s say income minus all of the expenses it’s going to flow through as the term says through your income, but then once it’s in your personal income you won’t have to pay taxes for it. Is that correct?
Jennifer: Yes. I’m saying that you pay it, so it flows through the LLC and that it just flows through to you, that you’re only paying the taxes on your personal income. If it’s you by yourself, you may file something called a Schedule C with your tax return, and you’ll fill it with your one tax return, or if you’re in a group of partners, you may have to file a different return and get something called K-One.
I hope I’m not getting too technical, but that entity, still not taxed. It still flows through on your personal tax return. It’s not taxed twice, so that’s what I mean by flow through.
Lucy: In terms of the liability, what would you say are the benefits of getting an LLC because I’ve had this question asked many times. Well, can I just get insurance for the house? Can they and should they get both? What’s your take on that?
Jennifer: My take on it is that, yes, you can get insurance on the house, but let’s say you start to own more than one house. Let’s say you have one house worth 100,000, and you have another house worth 200,000. Now, you have two homes that are in your name. If someone gets injured in one place, now they have access to sue you because you have both houses.
LLC pretty much is asset protection and what it does is it boxes the person off where it’s just this house is that LLC. The more LLC’s you have, I’m sure there’s a lot of paperwork, but the more asset protection you have because let’s say you have more than one property. You don’t want anyone who was injured on one property, and yes, you have insurance, but now they know, “Oh, she owns two.”
I’m injured more than the insurance policy, and they want access to the other house. You want to protect that. The beauty of LLC’s is you’re not taxed twice. You’re disregarded. You’re not taxed several times because we have LLC, but you have a sort of flow through where you’re the same owner, but you’re just genuinely being smart about protecting your assets.
A legal entity is the best way to protect your assets.
Lucy: A way to recap is, yes, you can only have insurance, but then it won’t protect your other assets. For example, if somebody falls in front of your house and you have ten rentals, that person who falls in front of that one house can go after all the remaining ten places that you have in your portfolio. But if you have an LLC for each of the properties, they can only sue you for that one house they fell in.
It’s still painful. You’ll even have to go to court and fight them, but you are protecting all the other ten houses within your portfolio. They can’t touch that because the incident only happened in that one house in particular. Is that what we’re getting out of it?
Lucy: How about the expenses that you incur to create those LLC’s? Are they tax-deductible as well?
Jennifer: Yes, they are, so why would you not do it? Why would you not do an LLC to protect yourself if you’re seriously thinking heavily of real estate investing and owning many properties? Why wouldn’t you divide your assets up and defend yourself like that? It’s a write-off, 100% write-off.
Lucy: There you go. Another question that I’ve had, do you recommend having one LLC and putting all of those houses in one, or do you recommend dividing them? Is there some cap in terms of the monetary worth of that one house?
Jennifer: That answer, it’s a great answer. It depends. The best solution is to get an LLC for each house you have, but sometimes that could be a lot of paperwork, and if you have a mortgage on your property, you have to factor into your mortgage on your property. If your property is owned free and clear, you may want to do that, start doing that, but if you have a mortgage on your property and insurance, you owe debt on the house. Can people sue?
It’s not like their cap is as big as if you had owned the house free and clear, and now you have a bunch of LLCs. I guess the best practice recommendation is to have an LLC for each property. Still, many people, I think that’s really up to them of how much they want to control and hope you still have to have insurance on your home, rentals insurance at that on your rentals, but you may find that maybe I’ll have these few and then as I pay the mortgage I can separate each one.
It is a point of choice, but I will say the most conservative way to do it is to have an LLC for each property.
Lucy: If you can afford that, of course. If not, at least have one and try to put some of your rentals in there. As you start gaining some equity or paying off some of the mortgages, then you can begin slowly transitioning and moving them out into the multiple LLC’s so that you can stay protected.
Now, this question might be a bit of a tangent. Because we know that when you are doing a business loan, then the lenders, the banks, actually prefer that you close the house on an LLC name. Still, what happens when you have a regular mortgage, a place you lived in, but then you eventually decide to move out and want to put it up for rent? How does that factor into the LLC? Do you do the lease and the LLC’s name but still keep the mortgage under your name? How does that work out?
Jennifer: That’s a tricky question. You should let your mortgage company. Some people don’t. They think that if you’re paying the mortgage on time, the mortgage company never finds out, but somewhere when you close on that house out of those thousands of documents that you looked at. The mortgage company wants to secure the asset. God forbid you are behind in the mortgage payment. They don’t want to have you have someone else on the deed and all that stuff.
There is somewhere in that documentation some null and void that you are the responsible guarantor. Technically best practice is to have the mortgage pay off, so you own the property free and clear, but if you can’t, I have read of the slight chance that they may find out that you should let your bank know that, “Hey. I am still the guarantor. I’m just putting this on. I’m still the owner of the company.”
Maybe they can do a deal where you both for you guys are on there so you can start using the LLC because typically, mortgage companies want to make sure that you’re not getting the home and then trying to get yourself out of debt and hiding it in LLCs. Somewhere in those closing documents, you signed that you are liable for this asset.
Lucy: True. As I mentioned in prior episodes, real estate is a relationship business. You do not want to burn that relationship with the bank not just because of that one house; maybe you’ll find another deal in the future, and you want to go back to the same bank and have them give you the funds to continue expanding. Always be transparent, and thank you, Jennifer, for clarifying that question.
I have gotten that question online what happens if, what happens if that. I hope this helps clarify some of the doubts and stuff like that. Now moving on to the different types. Partnerships, I’ve had people ask me, “Well, can I have an LLC, but have another person in it and so that way either my husband and I or my wife and I or my brother and I et cetera we co-own the LLC?”
It’s interesting because even though it is still an LLC, that becomes a partnership, right? I’ll let Jennifer explain that a little bit further.
Jennifer: Yes, you want to do that, and like I said, even though an LLC is a disregarded entity, you can be a single member of the LLC, but you could have a partnership. Lucy and I can come together and say, “Hey, we want to buy real estate.” But then, if we don’t put it in our by-laws and describe what we’re doing, we have the potential for someone suing both of us.
Let’s say Lucy’s rich and I’m broke, and we wanted to do a partnership, and then we decided to do 50/50, and I had some cash saved, but I don’t have as much wealth as Lucy we chose not to put in an LLC. Now, Lucy– They don’t matter if we would split 50/50. They can go after whoever has the money that they want to sue after.
Both our names are in there, and they have control. An LLC or a Limited Liability Company would help you in a way to say. What our capital contribution is? What we have? It can also be limited partners in there depending on if I want to contribute more or less, or maybe I don’t have as much to contribute? The LLC protects both of us in a way that they can’t even sue each of us individually, but they can only sue the LLC.
Lucy: Before we move any further, I heard the term by-laws. For those who don’t know, what exactly is a by-law?
Jennifer: It’s the rules of your company. Your articles of organization, how you would state your organization, and then you have rules of how you are running your company. Who are the members? In an LLC, it’s not shareholders, and it’s called members. Who are the members of your company? If I’m joining, I may not be 50/50. I may be a 10%, 15% member.
Lucy: You can determine that. We decide to join a partnership, and Jennifer can only afford 20%, and I put the remaining 80. She becomes a 20% owner of that limited liability company or that partnership. I became an 80% owner. You can also dictate how much access she will have, or your partner will have to gain it. Let’s say you collect rent because she put 20%, then she’s only entitled to receive 20% of it, or you can simply say, “You know what? We’ll want to do this 50/50.”
Maybe she put in 20% of the capital, but she’s doing all the legwork. Meanwhile, I’m just sitting back and relaxed while she’s doing all the work. The agreement that was decided was maybe a 50/50. You can actually negotiate how it should be run, and it’s all going to be listed in those by-laws, which are held privately by you. You get to dictate how you want to run it.
Jennifer: It’s good to put it in writing. I know we’re friends, but when it comes to transactions like these, you want to be clear when you join a partnership with someone, what someone’s contributing, maybe they’re contributing wisdom, knowledge. You want to be clear and explicit about what they’re doing.
Even though your friends are like, “Don’t worry about it.” Get it in writing, if you can, and seek out an attorney that can help you further that in your local area with experience in forming LLCs, which can help you write up your contracts and your by-laws.
Lucy: Now that we’ve talked about the concept of LLC, what a partnership is, for those who don’t know, what do they need to get started with an LLC? Do they go to a courthouse? Do you reach out to an accountant and go to an attorney? How exactly does the whole LLC formation process work?
Jennifer: Now people are doing it on LegalZoom. I highly suggest working with an attorney because there may be some rules in your state that you may not know about. I recommend doing your LLC, possibly in your state. If you have a property, employee, or a bank account in your state, they want you to do it in their state.
Maybe it can preserve you with a lot of paperwork. It’s just learning the state’s rules that you’re planning to invest in and where to set up that LLC. You can go to your local county clerk in your area, or you can hire an attorney or do legal zone if you feel you have a handle and know. Still, I recommend seeking an attorney to ensure that in your state, you’re not missing outlaw or any new rules that you should be aware of and possibly, also seeking out a real estate attorney that knows the laws of that state.
Lucy: For you to open an LLC, do you have to be familiar with the local rules in that state? Given your response, it sounds you can open an LLC anywhere. If I live in New York, I can easily open up an LLC, say, in California, as long as I know the local rules and abide by those rules, and I also have someone who specializes in the rules the law in that area. Is that correct?
Jennifer: Correct. Sometimes, if you’re not in that state and you don’t have a physical presence, you may need someone called a registered agent that does it on your behalf for you. Just look at your state’s rules and the other form you’re looking into and possibly seeking an attorney of that state to make sure you’re not missing any factors. We live in a big country where each state has a particular tax law.
I have to be in tax law but have their own state’s jurisdiction. You want to familiarize yourself. I would suggest not only going online and saying, “I’m going to do it here.” or this because of that. Just saving yourself a lot of time and paperwork, there are some things you probably didn’t even need to do.
Lucy: For those of you who don’t know, to elaborate a little bit more on the registered agent, before you even consider opening up an LLC in another state, besides learning the rules, of course, you also need a physical address in that state. They call the registered agent that you pay for a fee to utilize their lesson, an illegal way to hold your LLC entity.
For example, I live in New York, but I own rentals in Alabama. I will need a physical address in Alabama to open up my LLC over there and then have all of my rentals placed inside that LLC. In the event of a problem or something that I need to take care of, then I have a physical address, and the rules of Alabama will apply to whatever happened in that jurisdiction. Is that correct?
Jennifer: Correct. You said it perfectly.
Lucy: Now that we learn about what you need to get an LLC started, what’s the process going forward? Do you need to maintain it? Is it a one-time fee? How does it work going in the future?
Jennifer: If you do start to venture out in states, and every state is different. That’s why I say speak to your local CPA or attorney, but you do need to learn their rules. If you decide not to be a part of the state and go to a different state, you will have to keep up annual tax reports for them in that state. It is crucial to be familiarized with that state to maintain that LLC because, of course, every state wants to see your business, and they also want your money.
They charge for you having a physical presence in their state, and they want to know. It is essential to make sure you understand the tax rules of that state and what annual tax reports, or any registered agent fees, or any state rules that you would need to maintain that LLC in good standing.
Lucy: All of those fees are tax deductibles.
Jennifer: Yes, they are. 100% tax-deductible.
Lucy: As long as you’re doing business with them, they are all tax-deductible?
Lucy: Well, that’s very informative. Thank you for sharing.
Jennifer: You’re welcome.
Lucy: Now that we learned about LLCs, let’s just move on to the other type of legal entities that people can leverage when they’re having their business, whether it is in real estate or any other field. LLCs are our favorite because of the pass-through and their simplicity. What about other entities like an S-Corp?
Jennifer: S-Corp is also a flow-through in which you have to file two tax returns, but it’s still a flow-through taxed once. S-Corp came before actually LLC. S-Corp does limit you a little bit. One of the S-Corp rules is that you only could have 100 members, and they all have to be US residents. With LLC, it’s flexible. You can have foreign investors in that LLC. It’s a bit more relaxed in LLC, but S-Corps are still good.
Many people do S-Corps, and there could be another topic to deduct their social security, taxes, and take the salary deduction. We won’t get into that, but you could still use an S-Corp. Know that you’re going to have more paperwork, and you may have more restrictions. If you have someone international and wants to invest there, they probably can’t do it because they’re not US citizens or US residents.
S-Corp was before LLC. LLC was the newer, more flexible, let’s say, a more liberal model that just opened up for everyone to be able to participate in. Some people still use traditional S-Corp. Just keep in mind that you may have to file more tax balances, but most importantly, you’re not taxed twice. You’re only taxed once.
Lucy: Why would people choose to have an S-Corp as opposed to an LLC?
Jennifer: One of the reasons is, maybe this is their sole business, is real estate investing. Then they want to take a salary deduction for themselves and get themselves a W-2. They can do that.
Lucy: Which is something that the LLC wouldn’t let you do.
Jennifer: If you were a single member. Essentially, you can’t own a partnership return with yourself. You can do that with the S-Corp. Just be careful because they are regulated very heavily by the IRS in making sure you do the fair market value of your W-2. I do heavily advise talking to your local CPA or EA self. The beauty of it is a flow-through. I still think the best entity for me would be LLC because you don’t have to follow all that paperwork if it’s not necessary.
If it is something that you find yourself as a prominent real estate investor, making a lot of money, and you want to have a W-2 because banks seem to like W-2’s nowadays.
An S-Corp return plus your personal because an LLC also can be taxed as an S-Corp, even though it’s still a flow-through, meaning that you can do all of those filings. I love the LLC because it is very– It is still my favorite because it is much simpler.
Lucy: In terms of fees, are S-Corps more expensive, about the same as an LLC? How does that work?
Jennifer: I guess it depends on your state. Most people think LLCs are more expensive. I can speak for New York State. LLC is way more expensive than S-Corp. A lot of people do S-Corp, just because it’s cheaper. In New York, you have to publish in the state newspaper. It’s a lot of them. Many people go to New York, and they want to stay.
They think the S-corp is better, but the LLCs, even if it costs more, is more flexible and require less paperwork. When you talk to your attorney or your CPA, you should speak to an attorney, and a CPA is the best practice I would suggest. See what works better for you and what state you’re in because the fees are different in every state.
I just don’t want to speak to all the states. It’s essential to talk to your local CPA and your attorney to find out what works best for you. Many people in New York now default to that because it is much cheaper AND LLCs tend to be more expensive. I’ve been told.
Lucy: In terms of liability, because you hear LLC, you think limited liability. Then corporation, there are no such words as a liability, how does it work? How does it defer? Is it–
Jennifer: Same asset protection, it’s the same whether you’re an S-Corp, it’s still a corporation meaning that it’s a separate company from yourself, so the beauty back again to LLC is that you get the same benefits and without having to file all that paperwork. It may, depending on your state, cost you a little bit more or some people, depending on the state may be cheaper, but it’ll just be effortless to form, and you don’t have these rules of I could only have 100 members, and they all have to be US citizens, US residents.
You don’t have to deal with that, but you still, back to your question, have the same asset protection, meaning that whatever property is in that corporation is just how you are reporting it is the key.
Lucy: We can conclude in a way that people will tend to choose an LLC or an S-Corp based on one cost, the formation cost, and then the type of asset protection that you’re looking for?
Jennifer: Asset protection to me is the same. If someone sues you, they’re going not to sue you in your name. That’s the key. If you’re in an S-Corp, they’re going to sue the corporation in it that you’re in. The limited liability company, even though it’s a disregarded entity, is also a corporation.
Lucy: It sounds like it all comes down to price flexibility and paperwork?
Jennifer: Yes. That is perfect, is the ideal way to answer. The beauty thing is no one is suing Jennifer. No one is suing Lucy. They’re using whatever your name of the S-Corp is or whatever you name your LLC. That is the beauty of both of them.
Lucy: Then what about the next step up for, I think, C-Corp?
Jennifer: That’s taxed twice. You’re taxed on the corporation’s return, and then you’re taxed on your dividend income on your return. You’re taxed twice on the C-Corp. You’re probably thinking, why would anyone want to do that? If your company, in general, wants to go public and you want to have people invest in your company, like Facebook or Amazon, and you want people to get shares, and want capital funding, then that also realized what capital funding comes under control. You’re giving people control of your company if you’re not putting the money up yourself. Some people will think, “Okay, I don’t have any money right now to invest, but I believe this idea is going to work, and I’m going to give you stock to invest for me.”
That is not my forte, but it works for people. They may want to do it that way, and they’ll still have the asset protection that no one could sue them individually for coming up with this company idea. So will be sued in the company’s name. But the reason why some people may choose the C-Corp route is because of capital funding. They want to give shares to people for investing in their idea like Lucy said, the Facebook’s of the world, that wants to go public do an IPO, go on the exchange.
They probably would have to be a corporation, and people would need to see their books, which also requires more paperwork, but my favorite is still LLC’s. I don’t want to be taxed twice. I only want to be taxed once, and I don’t want anyone controlling my business.
Lucy: For those who don’t know when an IPO is, it stands for an Initial Public Offering, and it’s basically when a company is about to go public for the first time. You get exposed to like the first number of shares that you can buy, and it’s typically at a discount. I’m not sure, and I could be wrong. I think that’s basically what– I mean, in essence, it is for when you buy shares during an IPO. Back to the C-Corp conversation, it sounds like C-Corps are usually for much larger companies. Would you say over 100 members or something like that or?
Jennifer: It depends. Some people like the name inc behind their name, but I’ve had people come to say I just want to see inc, and they’re just starting. They don’t know the implications that come behind inc that you have to have. It’s taxed twice, and you have to file multiple paperwork, actually have to give stock members. They don’t know all that’s involved with it. It’s their choice, but I typically think it’s for the more prominent companies, in my opinion.
I would agree with you on that, but some people have started just going straight to wanting to be a corporation, and they have this idea and think they’re going to venture on and get capital from other people, and people are going to believe in their ideas. I just think they just need to keep in mind that you hear about companies being bought, buying up their shares, and taking over.
I don’t like to pay more taxes than I need to. I think it depends on your personality and your goals, but you can’t be so controlling if you’re not putting the money upfront. Maybe you’re the visionary, and you’re like, “I just need the money and then believe in this idea, and it’s going to work.” It depends on you, but normally the more prominent companies tend to go the C-corp route, but I think LLC is my favorite entity.
Lucy: The inc connotation is that it applies only to C-Corps or all kinds of corporations, including the S-corp?
Jennifer: S- Corp has inc behind it as well, but it’s just how it’s taxed. It’s not double taxed. Its tax doesn’t flow-through, and as I said, some people want to take salary deductions, and my thing is I also tell people to think about if your company has losses.
Is it worth depending on your state LLC costs more in your state? Is it worth just being an LLC and being taxed correctly and not having to– You’re saving on the back end that you do not have to follow all those multiple tax returns. You could file your LLC with your tax return if it’s just you. These are things that you should only really sit down with your CPA and attorney and learn the by-laws, but the beautiful thing about all of them is that nobody can sue you.
Lucy: Yaay. One thing and this is more for my personal information, I know this answer now, but I think that if I had that question back in the day, chances are other people have it. I’ve always seen Delaware, Wyoming, Nevada behind the state formation for whatever entities you choose from, whether there is a corporation or a limited liability company. What makes certain companies want to pursue, let’s say, a corporation or a company in Delaware and not Wyoming or New York? Are there any benefits to a certain extent as to why they would choose to open their companies there?
Jennifer: It’s more comfortable in cost and cheaper, and as I said, I could only– We could speak to New York. New York most people do the LLC’s outside of New York because they think it’s faster and easier, but they also have to think about if you’re doing investment property, what are your state laws? Something happens to your property, how easy it is for an attorney to represent you if you have to go to court or anything of that matter.
I stress it is necessary because one of the rules of many states is that you need to form a business in our state if you have nexus and nexus are you having a property, bank account, or employee in the state you’re at. If you’re trying to do a business in another state and live in New York, that would be wrong. That would be a tax wrong. You have to file that LLC with New York, where you’re physically located.
When you do file another state, let’s say you do that, you’ll become a foreign entity. It’s like you’re born in Delaware, and then you’re trying to do it in New York, but you were from New York all the time.
Was all that necessary? That’s where speaking to an attorney and a CPA combined becomes crucial. Maybe if you have an online business, you have a little bit more flexibility, but with something like real estate, I really would learn the laws of that state jurisdiction you have because each one is different.
Lucy: Last but not least, we also have another entity that I’m getting many questions about, and that’s the sole proprietorship. We can go over the benefits and do’s and don’ts. What do you have to share with us about–
Jennifer: [crosstalk] is easy. You could be today and say, “Hey, I want to start my business and get this house. I’m a sole proprietorship.” The hardship is, and the reason why we probably left it for the end is that you want to do that. You don’t want to be– You’re looking at being an active real estate investor, your chances of being sued if you’re going to different states is high, and people tend to think you have money when you’re a real estate investor. Still, they don’t see the costs that come with it, and why would you want to expose yourself to so much liability if something goes wrong.
A sole proprietorship is a general partnership is us coming together saying, “Hey, let’s get some real estate. Let’s own different homes.” The smartest way is to sanction off our assets and put them in LLCs to protect ourselves.
Lucy: Sole proprietorships and even general partnerships offer no liability protection whatsoever. Is that correct?
Jennifer: They could sue me, and you and I could have only given you a little bit of money, and then we could have been 50/50, and I only contributed a little bit, but they can go after us whoever has the most.
Lucy: Knowing that, knowing that the fact that it doesn’t protect you against any litigation, why will people choose to have a sole proprietorship or one of those companies, to that matter?
Jennifer: Convenience, I guess mortgages. I think if you’re on the deed as well at your lab when you let your mortgage company know, I’m only doing this to protect myself. Sometimes people just don’t know. They just want to go out there. They want to find a property; they wish to get into it. I want to be an investor, but they don’t think of these things, and I think it is so simple to do it.
Tomorrow we can go out and say, “Hey, we want to own this and buy this and get–” If you have money saved up to put a down payment and get it or maybe even own it outright, you just have to think for a little bit extra cost that’s 100% tax-deductible. Why would you not protect yourself?
Lucy: True. I realized I forgot to mention earlier that you can open a sole proprietorship with your own Social Security. That’s another thing that you should be more protective of. You do not just give your social security number out of the blue. For EIN’s corporations and companies, for that matter, you need what is called an EIN. It’s an Employer Identification Number. It’s social security for the company, right?
Jennifer: For your business. The good thing about it is if you’re going into these investments and stuff like that and get something called 1099, even if you have your own business, you’re not putting your name and social security number on private documents. You’re putting your company’s name, and you’re putting your company’s social EIN.
Lucy: A side benefit out of having an EIN is that you start building business credits. You’re keeping your credit under your social security. At the same time, you’re building your business credit, which will help you expand faster because you make it, the debt doesn’t go into your credit, become a business on your own, and keep the two separate.
You want everything that’s business-related to go into your business, and you want personal to just stay within personal. That’s some food for thought for you to make an informed decision. You know which one is our favorite, but in the end, it all comes down to what works best for you. Don’t say, “Well, I’m just going to LLC because Lucy and Jennifer, that’s what they like to do.”
No, do what makes sense for you. We’re expressing our opinion about what has worked best for the two of us. Always consult with an attorney, a CPA, or an accountant. Ensure that whatever entity you choose to use to form your business entity, your real estate business, or any other business endeavor that you’re about to hop onto makes financial sense and legal sense for you and the state you choose to do business at.
I think that’s everything we have. Is there anything else you want to recap on or share with the audience today?
Jennifer: I highly agree with Lucy. This is our favorite. We’re going on our school of hard knocks, our experience in the real estate industry, and living in a different state. You should not just say, “This is our favorite LLC because it’s their favorite.” It’s the newest, most flexible, but definitely, speak to your attorney in your jurisdiction and a CPA in your jurisdiction to see what fits your tax needs best because everyone has different tax needs.
Jennifer Kirkland has been an accountant for over nine years and the first African American woman to receive a Masters of Studies in Taxation and Law from New York University School of Law (NYU Law). She’s is also a real estate investor and my accountant for many years. Jennifer is a Certified Public Accountant (CPA) and is licensed to practice in all 50 states. Happy watching and feel free to contact Jennifer for any tax or legal entity related questions!
Contact Jennifer at [email protected]
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What's An LLC and Wha It Can Do For Your Real Estate BusinessWhat's an LLC and what it can do for you in real estate? Not everybody understands the purpose of an LLC and how it ties back to the overall picture of real estate investing. An LLC brings benefits and it...
Pros and Cons of an LLC in Real EstateJust like everything, a Limited Liability Company (LLC) can't be perfect. We are going to do a comparison to give you a contrast so you can actually get the full-blown picture of what is it that an LLC can do and what is it that...
Maximizing The New Tax Code | Guide for InvestorsToday, it's all about taxes. I have a special guest here in today's episode, Jennifer Kirkland. Jennifer is a great friend of mine. We go back to the days when we were in college. She also happens to be my accountant of...