All Forum Posts by: Chris Shon

Quote from @Michael Plaks:

Here is an example of what it costs you to avoid professional advice. Your LLC saves you absolutely nothing on taxes, unless you will end up making a killing on this deal or have other juicy deals - and that is a big IF.

But what you did accomplish is that now you owe $800 per year to your greedy state of CA, even though the LLC is formed in another state. I would have advised you against an LLC, most likely, contingent on your attorney's legal protection concerns.

This is assuming that by "we" you meant your spouse. If you partnered with someone other than your spouse then yes, LLC was a good idea, since you now have a partnership. Which is very complex and costly and likely warrants professional help.

Now, if it's just you and your spouse, then your 2024 tax preparation is likely relatively straightforward:
- you will create a Schedule C on your personal tax return
- you will NOT report any costs of purchasing the property or its rehab, not in 2024
- you will report your business overhead expenses such as marketing, driving, technology etc
- you will end up with a business schedule showing zero income and some expenses - not breaking the rules but potentially raising an audit flag

Can you do it yourself? Probably. Can a professional accountant do it better? Probably. Is it worth it? Hard to say. Please read this:
https://www.biggerpockets.com/forums/51/topics/1088325-expla...

Thanks for the detailed response! Wanted to clarify a few things if that helps. 
1. I don't think we owe $800 in CA, we incorporated in GA and have a registered agent in GA. 
2. The LLC is a partnership between myself and another friend who's also an investor. Not my spouse. 

Anything else that might be worth mentioning based on this?

Hello BP community!

We started an LLC last year and are about to file our first return for 2024. We have purchased a property for flip that's currently under renovation. I wanted some advice on whether we need a specialized tax accountant for Real Estate. They seem to be very expensive and I'm not sure if it's something absolutely necessary or not.

It's a GA LLC, but we're based out of CA.

Any direction would be much appreciated!

Hello BP Community!

My business partner and I are looking to invest in single-family homes and duplexes in and around Atlanta. We're based out of California, but have a solid team in Atlanta, including a contractor and realtor.

Due to the distance, we've had some challenges with in-person meetups. So, we're trying to find other ways to connect with people who are active in the city. 

I'm already part of a few Facebook groups, but I'm also open to chatting or catching up over a phone call. Any advice or insights about the city would be greatly appreciated. I'm here to learn as much as I can.

Thanks in advance for any tips or introductions you can provide. Looking forward to connecting with you all!

I didn't think this was a small addition. It's adding another 50% of the entire footprint. How would I get plans for the city permits without an architect? It needs structural engineers to sign off as well. 

We're closing our first BRRRR property and looking for an architect! We're adding a 400-450 extension to the house to add a bed and bath. It will go from a 2/1 (891 sqft) to a 3/2.

220 Mt. Zion Rd., Hapeville, GA 30354

I've spoken to SketchHaus and an independent architect and it's averaging around $4,000 - $5,000 including the layout and plans to have approved permits. Does anyone have someone else that might be cheaper? Our budget is around $2,500. We have rough plans below (red outline is the original footprint). 

Any suggestions are welcome! 

We just formed our LLC and got our EIN. We will be buying, rehabbing, renting, refinancing and/or flipping. Is sales tax registration required? Would love to get some direction here. I don't want to waste time filing each period if it's not necessary, but I also don' t want to have to deal with audits and penalties if it is.

Thanks in advance!