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Updated 12 months ago on . Most recent reply

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Jure Klepic
  • New York
0
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4
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CORP or LLC

Jure Klepic
  • New York
Posted

Hi, 

I am seeking advice on what kind of entity I should form for tax lien investing. My primary goal is not to own the properties but to simply reinvest the lien return into the lien. I understand that if I buy the property, LLC is the best option. I just got confused as I read that the best would be to open a Corp and then use a land trust to buy the liens.

I am planning on forming the entity in Wyoming. 

Thank you in advance for any advise. 

Most Popular Reply

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8,132
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Basit Siddiqi
#4 Buying & Selling Real Estate Contributor
  • Accountant
  • New York, NY
3,658
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8,132
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Basit Siddiqi
#4 Buying & Selling Real Estate Contributor
  • Accountant
  • New York, NY
Replied

The question you should be asking is

1) What type of liability exposure would I be generating and will an LLC or Corp be suited for that.
If you don't plan to own the property, I can't anticipate a piece of paper causing much liability, if any at all.
2) What type of income would the tax liens be generating and would an LLC or corp minimize the taxes.

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Basit Siddiqi CPA
4.9 stars
74 Reviews

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