Dallas-Fort Worth Real Estate Investor Club

Legal Entity Formation - Tax Advice

  • 30 Oct 2012 2:57 PM
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    Message # 1118906
    Anonymous
    After graduating and settling into the "real world" and working in a cubicle for close to a year, I've rediscovered that I don't want to be an big corporate office cubicle monkey for the rest of my life. I'd like to start taking action on the sound REI principles I've soaked up at the weekly meetings. It's time to start making it happen.

    To that end, I'm writing a business plan and considering entity formation(whether I need it at this stage, whether I should form a legal entity now in light of my long term strategy, etc). I saw the post a week or so ago regarding recommendations for a RE attorney. I'd like to ask for similar recommendations regarding CPAs with a REI specialty. Specifically, I'm trying to understand the tax the tax implications of forming one business entity over another as it relates to Real Estate.

    Any recommendations y'all could provide would be greatly appreciated, as well as your own general thoughts and comments on the legal entity issue. Perhaps y'all have walked down similar roads in the past? I'd love to learn from your experiences.

    Thanks,

    ~Austin McConnell
  • 31 Oct 2012 5:18 AM
    Quote
    Reply # 1119539 on 1118906
    Deleted user
    Austin,

    Congratulations on becoming awake and aware. That's the first step toward becoming independent.

    The best recommendation I can give you regarding accounting / tax / legal formation advice is to talk to your chosen attorney first. They will visit with you about what might happen. Then, talk with an accounting professional who really understands real estate investing and has several clients who are investors. They will provide you with advice on things that will happen - frequently; namely, paying taxes.

    I highly recommend Jacenda Anderson (817) 885-9189. She has many investors as her clients, does a great job of keeping up with tax changes, and is highly affordable.

    As for corporate entity choice and formation, it's my understanding you should chose that based on what you are going to do. that said, it's rare I see someone here who ends up needing more than a simple single member LLC. Milt Colegrove can help you set those up quickly and easily.

    Let me know if there's anything else you need.

    _Greg

    Greg Wilson
    The REI Mentor
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