Skip to content
×
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
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Innovative Strategies
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 over 1 year ago on . Most recent reply

User Stats

113
Posts
10
Votes
Pixel Rogue
  • PA
10
Votes |
113
Posts

Creating a real estate management company...

Pixel Rogue
  • PA
Posted

Considering creating (or repurposing an existing llc to) a small real estate management company, specifically to manage properties that we already manage (we are a married couple w/a small portfolio and handle 85% of the needs personally.) This company would charge each investment a small percentage for management.

Purpose - to turn passive income into active income that could then be applied to self invested 401k.
----
Few tax related questions if we go this route:
• We both have W2s and max out our 401ks. The additional extra would be more along the lines of a mega/super Roth (google if not familiar)
• Income from management company would be reportable, like it is today through rollup to our personal funds.
--Would there be minimums or caps for this path? If the business earned 1k a year, could that full 1k go directly to SD401k?
--Taxes would still be due on profit and the plan would be to pay other ways such as from our personal savings?

---
If this post is better suited for a different forum let me know and I/l get it moved. 

TIA

Loading replies...