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Updated over 7 years ago,
Getting started, Need advice in texas
Myself and a colleague are going to become business partners and begin real estate investing. Wholesaling to start and then later moving on to flips. We are in Texas.
We have some experience in the field so we are not completely novice.. However when it comes to starting a business I am LOST!
There are SO MANY different ways we can form the entity.. and I want your opinions on the best ones...
My first initial thought was an LLC, but I am not sure how that works with there being two "owners" involved.. Can a plain LLC have two owners?
I also understand the option of a General partnership which requires no formal filing with the state..But there is also no liability protection and both partners are fully responsible for any debts of the business.
Now my biggest concerns are taxes..
How are taxes filed with an LLC with two owners, if thats even a thing and how are taxes filed with a general partnership.. From my understanding on the general partnership a certain form has to be filed first and then another form has to be created and sent to each partner with their individual expenses and profits.. and then the two forms be filed together on each partners federal tax refund?
i could be completely over thinking this...
Marketing, strategies, budgetting.. I am good at all those things.. But taxes and business entities are a foreign language..
Long story short.. anyone here have a partnership, how do you have it structured, whats the tax processes..