Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Tax, SDIRAs & Cost Segregation
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 5 years ago,

User Stats

6
Posts
1
Votes
Zach Lincoln
1
Votes |
6
Posts

Investing Retained Earnings

Zach Lincoln
Posted

Ok, hypothetical, but will become realistic I am 22 and I make 140k a year. I live off of 36k and want to invest the rest into real estate. The goal is to create an investing business where all profits can be retained and re-invested into real estate every year until my mid 30's. The problem is that a C-Corp will become a personal holding company and that's horrible. A S-Corp is a pass through entity and is an absolute pain to get financing with. My idea was to invest under an LLC elected to be treated as a corporation for tax purposes. If I do this would I be able to fund the LLC periodically via owner contributions. Invest that money into real estate. Pay the flat 21% tax on all profits after write off's and not pay myself a dime. Then use the retained earnings to invest. And the cycle continues. My other question is that I have a LLC also taxed as a corporation for trading stocks. If I wanted to move retained earnings from my stock trading llc to my real estate llc how could I do that without the funds appearing as a form of revenue on the real estate llc's books and therefore being taxable? I understand that all responses to my questions are educational and theoretical and not legal tax advice. Before any action is taken I will consult a tax professional. :)

Loading replies...