Taxes and wholesaling (LLC or not)

[Ronald P.]

Hey all,

As I step forward into my first deal different things are coming into my head and this time it's taxes. I am pretty ignorant when it comes to this topic because I never had any real world experience yet.

Let's say I get a deal under a contract and assign it over to an interested buyer and I receive my check. How would I file my income tax on it? I am also wondering if I should open a LLC or s-corp to further have benefits on taxes. I know I haven't done a deal yet, but I do have some starting money. People were advising me not to sign contracts under my name, and to do it under a LLC for "protection." I know this question probably sounds really silly, but I am just trying to do everything the right way. Thanks for your further replies.

[LeTonya Moore]

What Greg said...lol. Seriously, consult with a competent professional about your long term goals, this will help to make sure your entity is set up correctly from the outset.  You also want to create a business entitity to get the tax advantages associated with it as well.