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Updated almost 8 years ago on . Most recent reply presented by

User Stats

55
Posts
3
Votes
Robert Hastings
  • Philadelphia, PA
3
Votes |
55
Posts

can i change my business purpose with the IRS?

Robert Hastings
  • Philadelphia, PA
Posted

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

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