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Updated over 6 years ago,

User Stats

10
Posts
3
Votes
Geoffrey S.
  • Rental Property Investor
  • San Diego, CA
3
Votes |
10
Posts

formation of a c corporation

Geoffrey S.
  • Rental Property Investor
  • San Diego, CA
Posted

I received a tip from a friend that taking my properties and incorporating them into a c corporation is the best tax structure for me.  I've got a full time job and, for now, the rentals are supplemental income/retirement fund--netting 25-35K/year before taxes.  Obviously, I'd like to increase that, but that's where I'm at until I feel comfortable venturing out into something else.

I've researched a bit and heard repeatedly that incorporation of my holdings is not something that I should attempt to do on my own--I will need a lawyer.  Friend's lawyer charged him 7K, but quoted me 14K (friend is an expert haggler).  Anyone else done this?  Tips?  S corp is better?  Sole proprietorship is better?  If I'm making this little money, it'll take years to pay off.  Should I bother?  

Should I bother to try to incorporate in one of the tax haven states (Nevada, Delaware, Wyoming, etc.), or just play it straight and pay up and incorporate in business-not-so-friendly California, where I live?  Any advice is appreciated...

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