Personal Vs Business

[Joseph Garner]

Hi guys,

I currently have 3 properties which together is 7 doors. Currently I have all of them under my name, is that fine or is it something I should get with a CPA about and get them under an LLC? Mainly for tax and liability reasons.

Secondly, I use personal credit cards/bank accounts for most of, if not all transactions. Should I also change this into

A business?

Any suggestions would be awesome. Thanks

[Natalie Kolodij]

Originally posted by @Account Closed:

I'm no expert, but I've been reading up on opportunity zones, and if that may ever be an issue for you, you want to be taxed as a corporation. You can set up an S corporation, which protects you like an LLC, from what I was reading. You have a little more paperwork to deal with, as in asking yourself to reelect yourself lol, but didn't look daunting. It's a pass-through corporation, so it just gets passed to your personal tax return. I'm just learning about this stuff, so someone else could explain it better. Anyway, when I get to that point, I'm going to set up an S corporation, as I'm probably going to be investing in opportunity zones. For what it's worth.

 You should almost NEVER keep properties in a corp. Do a google of "why not to hold properties in an S corp". 

Recommending someone use one just in case they ever decide to invest in an Op zone is not good overall advice, it's a super specific situation when it makes sense. 

A partnership for a QOZ fund would make more senses most likely. 

For OP's situation an LLC won't provide any tax benefits.

And buying in QOZ only provide tax benefit if you bought using the proceeds from a capital gain.