Should I keep my real estate business personal or under my corporation?
Posted on August 4th, 2010 in Corporations | 1 Comment »
Eqlectic asked:
I have a corporation with a used car dealership/repair under it; I'm also planning to add an electronics/apparel store, and recently I started to be involved in real estate auctions. I am wondering if it's a good idea that I do it under my own name or put them under my corporation. What are the pros and cons?
Keyless Entry Remotes
I have a corporation with a used car dealership/repair under it; I'm also planning to add an electronics/apparel store, and recently I started to be involved in real estate auctions. I am wondering if it's a good idea that I do it under my own name or put them under my corporation. What are the pros and cons?
Keyless Entry Remotes
One Response
Hermosa Beach Dentists
I have been a Real Estate Investor for 10 years, you need to put it under your corporation. You may even want to put it under another corporation entirely.
Real Estate investing is a business of only big liabilities. One big mistake can cost you literally thousands of dollars. Of course ricks can always be mitigated you should realize that a bad mistake can tie up all your assets.
I run all of my deals under an LLC it keeps me protected and the tax benefits are decent. Depending on how many deals you are doing you will want to consult with a tax professional as you don’t want to get drawn into huge tax liabilities like being considered a dealer.
I don’t mean to scare you off from real estate investing as I have done it for over 10 years and been quite successful. I have only been sued once and I won my case. With that being said you only have to lose once to be very very sorry so keep it protected their really is no reason not to.