All Forum Posts by: Ahad Ali

@Stephen Thomas Get a CPA to carefully examine your finances and income. You can strategize ways to lower the amount of taxes you’ll owe. There’s options, just consult with someone who is well versed on your situation.

@Philip Olivier You should hire a CPA to make your life easier so the bookkeeping is taken care of. If after a few tax seasons you feel comfortable handling it all on your own, then feel free. It’s not an obligation to stay with your CPA forever. But I will say this, meeting with them throughout the year will provide great tax planning and prep that will save you money in the end. You‘ll build trust with them as they get to know you and you can grow financially and know that they will provide support. Can’t get that if you only visit a CPA once a year.

@Dharmesh Shah You should do it through an attorney since it’s your first time filing on your own. Also good to consult with a CPA about liability.

@Agastya Malatker I say it’ll overcomplicate things where now you’ll be charging them or dealing with security issues like sharing an IP address or having their illicit activity come back down on you. Just politely decline.

I suggest forming an LLC after evaluating how high the equity risk is for the property. Find a CPA in NYC (if that's where you're based), many are versed in PA regulations as well. Or you could find one directly in PA. Message me if you need recommendations.

Hi Jeff,

I would recommend separate bookkeeping for each property as well because it will help during tax time and also will help you gauge profitability for each property separately. Your CPA was right.  

@Ahad Ali + adding on, If your LLC is treated as a pass through entity then basically when the income gets passed to you. You will be taxed in the state you file your personal taxes in even if property is in a different state.

@Cynthia Miller Hi Cynthia, So it appears you have 2 questions here. First, you don't necessarily need a separate LLC for each property. You may want to look at your equity risk in each property. Maybe if one of your property has a mortgage on it and your equity is maybe 10-20%, maybe it’s not worth an LLC. You can also hedge risk with good insurance. Because you have to remember it's not just having the LLC. You need to follow all rules so you don't pierce the corporate veil at which point an LLC won’t provide the liability protection you are looking for.

@Pat Jackson After meeting with a lawyer together, you should also consult with an accountant.

@Tim Schroeder As an accountant, I agree with Dan! You should be using Quickbooks for everything.