Goals, Business Plans & Entities
Market News & Data
General Info
Real Estate Strategies
Short-Term & Vacation Rental Discussions
presented by
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Tax, SDIRAs & Cost Segregation
presented by
1031 Exchanges
presented by
Real Estate Classifieds
Reviews & Feedback
Updated over 8 years ago,
Do I still pay taxes if I re-invest my LLC's revenues?
I'm planning on mounting an LLC to start my first real estate investments. My plan is to immediately re-invest all profits generated by the entity, in the name of the LLC, so I pay no taxes on it. I would probably invest in highly liquid assets, something like stocks, until the LLC's got enough to cover the downpayment for another loan, buy another property, and so on. If I understand correctly, that should save me from paying taxes on my real estate revenues.
I'm super new to all this. Is there any flaw in the reasoning?