I want to start a business to protect my assets?
I own 10 rent properties and I have recently started building new homes for resale. I would like to start a business to protect my personal assests and start operating under and business name but I dont want to get myself into alot of rules and regulations. What type of business should I start c corp or s corp or neither. What will give me the best tax benifits but will not necessarily make my taxes too difficult to file and costly to prepare?
July 12th, 2010 at 4:46 am
So much BS on here….
You need either an S-corporation or an LLC. In either case, figure you will add $500 to $1000 a year in extra costs (mostly for tax prep and small filing fees). You may also save that much in tax benefits.
Its not that complicated, you can do it yourself or pay an attorney to set it up for you. I would suggest you find a good but cheap attorney, so that they can guide you thru all the issues involved. You CAN do it yourself, but first time mistakes will probably cost you more than good advice will. And you may want TWO or more different corps, depending on the issues and risks.
Biggest issue will be getting your existing business and properties into the business name. It may take a while.
July 12th, 2010 at 5:16 am
I own a moving business that was incorp. 10 years ago. I would suggest that you hire an attorney or a CPA. I did it through my CPA and he takes care of all my annual filing and makes sure I don’t miss any of my deadlines as well as all tax filings. A few years ago the IRS preformed a audit and he was able to take care of the whole thing for me and I came out smelling like a rose. They found absolutely nothing. It just takes alot of stress off of me so that I can focus on building my business.