Business entity question

[Bian R.]

Hi Everyone

I own 2 condo units in New Jersey, and I wanted to place them under a business entity, The units are own free and clear.

I was reading on my options but I decided it is better to seek a professional. I own in New Jersey but I live out of the state, I read it is advantageous to get incorporated in Vegas, and Wyoming. I read that it is better to put both properties into ONE entity , while others state it is better to place each property into their own individual entity. which one would you recommend? I read options on Land Trust and place the trust into a LLC, I don't know if this is beneficial?

I want something that provides the best protection for me and my personal assets

I want something provides the maximum tax advantages for my small operation.

Ideally I want something that is structured in a simplified manner and easy to manage

I want something that doesn't cost a lot of money to set up or maintain yearly.

[David Dachtera]

@Bian R.,

You'll find mention of Mark Kohler on BP. He's a JD Tax Attorney and a CPA Tax Accountant. He has a suggested business entity structure which provides very good isolation of your personal possessions and the rest of your estate from your REI holdings.

The idea of holdings is for long term holds to be in LLCs. Some folks do it by the number of properties in each LLC, others by the $value in each LLC.

Short-term holds like rehabs for sale and fix-and-flips are o.k. for S-corps.