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Updated over 6 years ago,
formation of a c corporation
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...