Official Carleton H. Sheets^® Website

Thanks Jennifer!

It does seem to be driven by each person's situation. For us, after discussing with another source, we are going to keep it simple and not form a legal entity. If and when we decide to expand operations aor have more liquid assets, we will move to a legal entity for asset protection / increased operating risk.

As I understand it, the equity in our home and our retirement accounts are not touchable if someone is suing us. But we will be taking out an umbrella insurance policy in addition to insurance on each individual property. So for now, we have our answer. Hope this might be insightful for someone else.

Thanks again!

Matt

Hello Matt,
The best and easiest I've found for a husband/wife team is LLC. You will need to decide how you prefer to file at tax time. The choices are as a partnership or as sole proprietor. If sole proprietor (as a cpl) all you do is file it on 1040 with necessary profit/loss form and any others needed. Having H&R Block prepare are taxes is what we have done in the past. This was so easy we started doing them our selves. The LLC was an internet business at the time. I sure this will work the same. New to this program we are setting our selves up in the same LLC manor. You may want to get a tax ID from your state also so you can defer sales tax when buying for the rehab.

Rj

Also Matt,
Keep in mind.... The reason a cpl can best benefit from LLC is protection from law suits. Meaning you personal interests are more protected from Law suits. for instance. if someone fell in a pool and was hurt on the property you are rehabbing. YOU the owner, even if the property is INS'd. can't be sued. Only the LLC can be. there by protecting you from loosing your personal home and all you are worth.

Rj