Development and Investing Business Model Structure

[Robert Wallace]

Hey Bigger Pockets community!

I'm thrilled to be part of this amazing community of real estate enthusiasts, and I'm seeking your collective wisdom and expertise to help me navigate a crucial decision for my new real estate development venture. As a new developer and investor, I want to set up the most advantageous business entity structure that balances both tax efficiency and robust legal liability protection.

Here's the scoop: I will personally own the development company, as well as the real estate assets and funds that will employ this company for projects. I understand that choosing the right structure can have a significant impact on both my tax liability and overall risk exposure.

So, my fellow investors and seasoned developers, I'm curious to know:

1️⃣ Which business entity structure do you recommend for my new development company, given the specific circumstances I've described?

2️⃣ How can I optimize my tax strategy to minimize liability and maximize returns on my real estate investments, while staying compliant with the law?

3️⃣ What are the key factors to consider when striking the perfect balance between tax benefits and legal protection, and what potential pitfalls should I be wary of?

I'm looking forward to hearing your invaluable insights, experiences, and suggestions. Share your knowledge, success stories, and cautionary tales that can help me make an informed decision.

Thank you all in advance for your valuable contributions!