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Updated over 7 years ago,
can i change my business purpose with the IRS?
my business is ABC Proeprties LLC. i have been up and running for 2+ years. i own 5 properties and they all are performing well. i am scoping out my 6th property and hope to close before summer.
when i started the business i only planned on buying and renting real estate.
now i see a market for property management (for other investors) and for consulting services...
i dont know if i can change my business purpose on with the IRS. if i start collecting monies for real estate related services other then "rent", my deposits will be more then my calculated rent with my existing properties.
i know several investors with large portfolios of rentals in my city. they have offered 7% of gross rents to me if i manage their properties. i could start collecting an extra 1000-1500 per month. its not much but i dont like cash in my pockets. id rather deposit it but i dont want to get in trouble with uncle sam.
is there a way to change my business purpose to a more broader scope of real estate related services? is it a headache or a relatively easy adjustment?
thanks