Everyones favorite subject TAXES!! I need some advice.

[Lindsey Crawford]

Hello all,

So I will be moving into the real estate field in Feb. (retiring 20 years Marine Corps)I'm going to be a licenses real estate agent (TN) to get my feet wet, then dive deeper into flips and rentals. My question is when or maybe if it's a good idea to set up a LLC? Follow on question is I foresee some business expenses coming soon (for buying/selling and flipping) and would like to start making those purchases now while I'm on a salary vice with until I'm independent. Should I set up the LLC before incurring said expenses or will I be small enough that taxes won't be a concern....initially.

Any insight is appreiciated.

Lindsey

[Daniel Hyman]

@Lindsey Crawford

Solid advice from @Ashish Acharya. I would add that you'll want to meet with a CPA prior to electing to be taxed as an S-corp. There are definitely tax savings as an S-corp, but there are also additional professional fees and admin requirements. You'll have to take payroll as well. Depending on your overall financial picture, an S-corp may or may not make sense. Your CPA should help navigate that for you.