Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Goals, Business Plans & Entities
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated 6 months ago, 07/08/2024

User Stats

24
Posts
6
Votes
Richard Benjamin Wilhite
Pro Member
  • Savannah, GA
6
Votes |
24
Posts

Business Income that Doesn't Increase My Personal Income

Richard Benjamin Wilhite
Pro Member
  • Savannah, GA
Posted

How should I set up my business structure so that income from my rentals doesn’t increase my personal income reported to the IRS?

I currently have three properties that I purchased in my name as personal residences. I lived in them each for one year and then rented them out. I collect the rent in a business bank account that I opened with a sole proprietorship.

I'm now buying a fourth property under a newly formed LLC.

Should I place the first three properties that I bought in this new LLC?

Should I change my business bank account to the new LLC?

Or should I open a new LLC that acts as a sort of "property management" that collects the rent from all of my other properties and pays out the expenses?

Do I have any other options?

  • Richard Benjamin Wilhite
  • Loading replies...