All Forum Posts by: Paul Choate

Welcome, glad you are here!

Welcome!

Welcome! It sounds like you have a lot to contribute. I would be interested in learning how you manage everything from so far away. I can barely handle it while living in the same town.

Welcome! I am from Shawnee. Please add me to your contact list. I am interested in the East OKC area.

Welcome from Shawnee! Read everything you can on here and enjoy. I wish I had this resource when I started. Good Luck!

-This discussion is about the selection of tax treatment under an LLC-

@Ben Sinkunas Can you tell me the difference between an S-corp and a partnership in how they are treated on taxes? I am not doing real estate full time although it will account for about 40% of my income (because of principal pay down- not cash in my pocket!). I assume I will not have to pay self employment tax until I am doing it full time. Please correct me if I am wrong.

Can you give a quick rundown on the differences between the partnership and S Corp elections in how the IRS treats them differently?

I don't know why you would have any restrictions on borrowing money as an LLC. You will probably have to personally guarantee any loans until the LLC has a track record and assets. That would still apply if you are a partnership or a corporation as well. The biggest issue for me is the tax implications of your structure and I am having that same issue myself. I am currently set up as an LLC (single member) and working on refinancing some of my properties to get cash for more purchases. I have not had any issues with the bank because I am an LLC. I have just set up another LLC for a partner and I and have elected to be treated as a partnership for tax purposes. I can't wait to find out what happens tax wise this next year!

I would like to know how others are set up as well.

Welcome from Shawnee!

@Steven Hamilton II

It did very much... I need to tweak my stratgy now by learning all I can about this issue. I am going to be walking a fine line for the next few years between growth and cash flow. Thanks for your advice.

Thanks for the book suggestion. I looked at it and it seems right up my alley!