Otherwise, not necessary)Mortgage PayableTenant Security Deposits HeldEquityTotally depends on your structure, but could be:Owner Contributions (for sole prop)Owner Draws (for sole prop)Member Contributions (for LLC/Partnership/Joint Venture)Member Draws (for LLC/Partnership/Joint Venture)Capital Stock (for S-Corp or C-Corp)Additional Paid in Capital (S-Corp or C-Corp)Shareholder Contributions (for S-Corp)Shareholder Dividends/Distributions (for S-Corp)Retained Earnings (all forms)If a few number of partners/members/shareholders, then one Contribution/Draw account per person/entity.  

Or is there a number for the entire building that every coop shareholder needs to use for their unit?

Wachovia just raised $7 Billion from existing shareholders and cut their dividend.

It files an information IRS form 1120-S and the profits and losses "flow through" to the shareholders.

These investors would rather deploy capital into bad investments than to have the capital sitting on the sidelines -- this allows them to push off the problems of dealing with irate shareholders to tomorrow instead of today.So, we are able to wholesale non-rehabbed properties at essentially ARV to investors planning to hold as rentals.

You are running a business and you have a legal obligation to return a profit to that businesses shareholders........If you want to be altruistic, offer to find them another property they can rent/lease purchase from you.

c) Exceptions The term ''personal holding company'' as defined in subsection (a) does not include - (1) a corporation exempt from tax under subchapter F (sec. 501 and following); (2) a bank as defined in section 581, or a domestic building and loan association within the meaning of section 7701(a)(19); (3) a life insurance company; (4) a surety company; (5) a foreign corporation, (6) a lending or finance company if - (A) 60 percent or more of its ordinary gross income (as defined in section 543(b)(1)) is derived directly from the active and regular conduct of a lending or finance business; (B) the personal holding company income for the taxable year (computed without regard to income described in subsection (d)(3) and income derived directly from the active and regular conduct of a lending or finance business, and computed by including as personal holding company income the entire amount of the gross income from rents, royalties, produced film rents, and compensation for use of corporate property by shareholders) is not more than 20 percent of the ordinary gross income; (C) the sum of the deductions which are directly allocable to the active and regular conduct of its lending or finance business equals or exceeds the sum of - (i) 15 percent of so much of the ordinary gross income derived therefrom as does not exceed $500,000, plus (ii) 5 percent of so much of the ordinary gross income derived therefrom as exceeds $500,000; and (D) the loans to a person who is a shareholder in such company during the taxable year by or for whom 10 percent or more in value of its outstanding stock is owned directly or indirectly (including, in the case of an individual, stock owned by members of his family as defined in section 544(a)(2)), outstanding at any time during such year do not exceed $5,000 in principal amount;"End quoteMy first followup question:It's my understanding that I need not be concerned about the impact of the Safe Act and licensing requirements if I'm using just my money to loan to others, and that I have a broker creating the loan documents.

Given this situation, I assume that the best way to set this up would be to create an LLC with both of us as equal partners/shareholders, and have all cash flow and expenses deposited and paid out of an account opened under the LLC?

- QuoraActively Seeking WorkAlthough an S corporation shareholder/employee is technically eligible for unemployment, most will fail the second threshold test: States require unemployment-benefits recipients to be "actively seeking work."

The bank was confused because I was also the major shareholder so they considered me as self-employed; which I wasn't I reported to a Board.