Business Entity Setup

[James Reiter]

Hi Everybody,

So I am a new RE Multi Family Investor, and need some advice on what Business EntityI should initially setup. Here is some criteria.

1. I will be the sole individual in the business

2. I will be partnering with private money, possibly more than one investor per deal depending on the size of the deal and available funds.

3. Looking for iron clad asset protection, and my business hopefully will provide benefits, IE health and dental.

Someone suggested create an LLc acting as a C-Corp, This way I can reap the benefits of the C-Corp without the insane amount of paperwork.

Your thoughts, ideas and suggesting are gratefully welcomed!

Thank you.

James Reiter

The Reiter Group

[Mark Mosch]

You're in Florida - so the LLC's there are fairly strong. In California, they suck. That being said, form an LLC for yourself, the "James Reiter Real Estate Company, LLC". Then, that is the entity that does the investments in the syndicates that you set up. You fund your LLC with a capital contribution, then the LLC carries an "Investment in XYZ Syndicate LLC" when you form your syndicate with the other partners and buy building XYZ.

That should give you pretty solid protection and tax advantages.   Obviously, you should review with a CPA practicing in Florida to make sure you've got everything covered, but that in general is the approach.