All Forum Posts by: Casey Lance

Great, this is what I was hoping for. I guess there is a Franchise tax form that has to be completed in TX for an LLC, but it seems pretty basic. So it sounds like there are not too many extra steps, that is great to know. Thank you for the reply

I was not sure where to place this post, so feel free to move it if necessary.  My apologies in advance.

I have an RV park that has been running for 3 years and I have been filing taxes under my name, and just running it as a self employed type of business. I would like to start an LLC in order to separate business from my personal assets. I am not sure how the tax process works with an LLC in Texas though.

Can I just file my taxes the same way I have been, with the same/similar forms for profit/loss? Or does an LLC have similarities to a corporation where I would need to file a lot of extra paperwork explaining what assets the park had, how much inventory of any products used at the park were left over at the end of the year, how many feet of toilet paper is left in the bathroom, ect (basically making the tax filing really complicated and a lot of extra things to keep up with)?

I read that there is some tax advantages to filing taxes with an LLC compared to a corporation because it could be done under the owners name, but I don't really understand what the differences are. If anyone could explain what I would need to do differently once the LLC is formed that would be great.

Thanks for the replies and advice.  Travelling can have a lot of sudden expenses, and the RV park have some sudden really really big expenses, so this is probably the best route to go, keeping my savings.  Having the 5200 payoff nearby by dumping it on the note is tempting, but keeping the savings is probably the smarter option.

A lot to explain here, so I will try to make it short and easy.  I currently own 2.5 acres with a covered extended stay RV park.  I owe 47K on the property, and the value is slightly over 200k.  I want to add a final half acre that is available, to make this a full 3 acres and extend the park.  The cost of building the new section of park and buying the half acre is 100K. I have 30K in savings I could also dump into this myself.  Here are the options I have with the bank.

Finance all 150K for 10 years, giving me a monthly income of 3,300.

Finance all 150K for 20 years, giving me a monthly income of 3,800.

Or include 30K of my savings and

Finance 120K for 10 years, giving me a monthly income of 3,600.

Finance 120K for 20 years, giving me a monthly income of 4,100.

I also have an option of a private loan of 60K, include my 30K, and just finish paying it all off in the next 6 years.  This option would give me a monthly income of 2,700 per month.

All loans are around a similar interest rate it looks like. (5%)

Amounts are after utilities, taxes, and all other expenses.  After the park is paid in full, I will have a monthly income of 5200 per month at full capacity (which it has stayed at for the 3 years since I built it).

The biggest deciding factor among these options are my lifestyle.  I am trying to travel most of the year and live mainly off the income from this property.  Part of me wants to dump all my savings into this, go with a shorter term, and get it paid off faster, although I would have a lower income for the next 10 years.  But that 5200 would be closer down the road, especially with route of the private loan on 6 years.  The other part of me says keep all my savings for travel and emergencies, and finance all of it, and stretch it out for 20 years.  This would let me keep my savings, have around 4K a month income, but wouldn't see the 5200 until I was in my mid 50's.  

I am fairly new to the investing scene, and still learning.  I would like some opinions or things to consider from some experienced investors or whoever else may have advice on these options and idea.  Thanks!