Finance

Have Finance Questions? Ask a Financial Expert Online.

Ask an Expert,
Get an Answer ASAP!

Finance
This answer was rated:

ok, now please answer the question :)

ok, now please answer the question :)
Ask Your Own Finance Question
Answered in 5 minutes by:
8/27/2013
Lane
Lane, JD, CFP, MBA, CRPS
Category: Finance
Satisfied Customers: 12,875
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified

NPVAdvisor :

Thx, you bt

NPVAdvisor :

(bet)

NPVAdvisor :

First ... Sole proprietorships, LLCs partnerships and S-Crops are all pass-throughs (for tax purposes) .... this means ....

NPVAdvisor :

that you get to use losses against other income, get lower capital gains rates, etc. that a C-Corp, where everything is taxed TO the corporation at Corporate rtes.... Further

NPVAdvisor :

a C-Corp has that doble taxation you've heard about .... first the c-corp is taxed, then if you wan to distribute dividends, you pay personal taxes on that again

NPVAdvisor :

and finally, on that...

NPVAdvisor :

THe other side of that coin is that profits on those pass-through are taxes immediately whether their paid out or not ... the C-Corp can hold the earnings and apply toward, R&D, for example, and no one pays that on that piece

NPVAdvisor :

Now, from a protection standpoint, SOLE PROPTIETORSHIPS and PARTNERSHIPS are no-nos

Customer:

lol, yes i have heard they are no no...i just used them to get started

NPVAdvisor :

your personal assets and income are not legally separated from the business... so business lawsuits, creditors, etc can come after you personally

NPVAdvisor :

I personlly believe the LLC is the best place to start (has the flexibility of the partnership, but the liability of the corporation)

NPVAdvisor :

Further, you can alwasy elect to have the LLC taxed as an S-corp later (by using form 2663) once you have that good problem of having to npay toommuch self employment tax

NPVAdvisor :

but the LLC doesn't require nearly as much "administrative ocerhead as the S-Corp)

NPVAdvisor :

sorry for the typos "overhead," ... corporate tax return (even though its distributed and taxed to the person, just as the LLC is as a default)

Customer:

Ok, so from a tax and protection standpoint, given my current circumstance:

- I own multiple pieces of income property at this time all in my name.
- I plan to own more pieces of income property. Some completely held by me and some held by me and investors
- i own a service business at this time...in my name

My THOUGHT based on what you are saying is
- i need to set up all of my ownership(s) to Real Estate title in one company
- my ownership + investors ownership to Real Estate title in another company
- the management of those properties in another company
- my service business in another company

What are your thoughts on which entity to choose so that i have the best protection and tax savings? ALL THESE IN LLC? OR DO I NOT EVEN NEED ALL THESE SEPARATED?

NPVAdvisor :

What state are you n?

Customer:

...i also heard trusts are good for holding title???

NPVAdvisor :

The reason I ask is that you may want to consider a Delaware "SERIES LLC"

Customer:

CA right now

Customer:

but my properties are in CA, AZ, CO

Customer:

i also plan to acquire more in LA, TX, FL w/ help of investors

NPVAdvisor :

ok, many form an LLC in order to protect personal assets from a legal claim relating to their real estate investment or business liabilities. ... Further, ...

NPVAdvisor :

Additional liability protection may be gained by properly forming and maintaining a separate LLC to hold each property or business entity

NPVAdvisor :

A "Series LLC" may be able to pay a single set of annual state fees and may be able to file one income tax return each year. In addition to the administrative streamlining, the key value is that liability incurred by one unit does not cross over and jeopardize assets titled in or allocated to other subsidiary units of the same Series LLC

Customer:

AHHHHHHHHHH

Customer:

i see

NPVAdvisor :

You're really beginning to sound like a series LLC or the Delaware Business Trust may make sense for you

NPVAdvisor :

With that many locations, the COST of several LLC's and the need to registed in all those state can get high

Customer:

so in effort to streamline all this protection and tax benefit(s) how would you set this up as me? Given what i said above w/ my current circumstance and future projections

NPVAdvisor :

Delaware is more expensive at the onset, but have BY FAR the largest body of business law, underwriters and angels are familiar, and if it's been don in business structres, Delaware's done it

Customer:

im small now, comparatively speaking, but want to set myself up right so that i have all these "containers" to go dumping the proper allocations in (i.e. title here, mgmt there, business there, etc.)

NPVAdvisor :

Right... Spend a little time with this huy's piece ... It's advertising but he's right ... and it sounds like this is where you may be headed

Customer:

ok. let me open up a new question w/ you.

Lane
Lane, JD, CFP, MBA, CRPS
Category: Finance
Satisfied Customers: 12,875
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified
Lane and 87 other Finance Specialists are ready to help you
Ask your own question now

Thanks Arah ... I do have a 4:30 (ea) but lets see what we can get done


lane
Lane
Lane, JD, CFP, MBA, CRPS
Category: Finance
Satisfied Customers: 12,875
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified
Lane and 87 other Finance Specialists are ready to help you
Ask your own question now
Ask Lane Your Own Question
Lane
Lane
Lane, JD, CFP, MBA, CRPS
Category: Finance
Satisfied Customers: 12,875
12,875 Satisfied Customers
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986

Lane is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Rakhi Vasavada

Rakhi Vasavada

Financial and Legal Consultant

2,608 satisfied customers

Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years

Megan C

Megan C

Certified Public Accountant (CPA)

2,218 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

Manal Elkhoshkhany

Manal Elkhoshkhany

Tutor

1,919 satisfied customers

More than 5000 online tutoring sessions.

JKCPA

JKCPA

CPA

844 satisfied customers

Bachelors degree and CPA with Accounting experience.

Eric

Eric

Financial Manager

559 satisfied customers

Loan servicing, counseling and real estate expert. Foreclosure Expert and Financial Planner.

R. Klein, EA

R. Klein, EA

Accountant

480 satisfied customers

TurboTax Expert. QuickBooks Certified Pro Advisor

Dimitry K., Esq.

Dimitry K., Esq.

Attorney

332 satisfied customers

NASD Licensed Rep, 1997-2001, Business Attorney

< Previous | Next >

Related Finance Questions
I'm trying to fill out a W4 and i'm working on the 2
Hi, I'm trying to fill out a W4 and i'm working on the 2 earners/ multiple job section. my total withholding needed is $5050. It then says to divide that by the number of pay periods left in the year.… read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
734 satisfied customers
Husband and wife submitted a joint tax return. However
This question is for Lev. Husband and wife submitted a joint tax return. However husband in a year prior to his death opened an art business with him as a painter. Thus, he attached schedule C to the … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I have done quickbooks for years. We are trying to go into a
I have done quickbooks for years. We are trying to go into a new partnership and we do oilfield work. The job we do is billed at a daily rate of about 5800.00 per day. The new partners want to know wh… read more
ABC Accounting Group
ABC Accounting Group
Bachelor\u0027s Degree
682 satisfied customers
A person was an artist fro 10 years and over those years he
A person was an artist fro 10 years and over those years he painted a large number of paintings. One year prior to his death he decided to be a professional artist. He filed a Schedule C for that year… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
If I have to issue a 1099 to someone that will apply for
If I have to issue a 1099 to someone that will apply for ITIN number, can I issue the 1099 with no social security or ITIN number?… read more
socrateaser
socrateaser
1,031 satisfied customers
I recently got divorced. As part of the divorce decree I was
I recently got divorced. As part of the divorce decree I was to make a one time payment of 10k to my wife that was to represent her equity in the house. I was unable to do a cash out refi because we d… read more
abci168
abci168
Principal
27 satisfied customers
I own a company with the stock symbol AGNC. I am looking for
I own a company with the stock symbol AGNC. I am looking for advice on whether or not this stock has a high probability of bankruptcy. I've owned it for over 6 years and currently have a paper loss. I… read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
734 satisfied customers
What would the best life insurance policy be and my partner
What would the best life insurance policy be it's me and my partner his earning potential ya about 150k per year mine is about 40k . We are both in our late 30s with little savings. We still rent and … read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,473 satisfied customers
I am 70 years old taking care of my mother who is 88. I have
My name is***** am 70 years old taking care of my mother who is 88. I have a mortgage of 50,000.00. I live in a very rural town of 320 residents. My mother and I probably will not live long enough to … read more
Curtis Mathews
Curtis Mathews
President
MBA
0 satisfied customers
I want to know how the Tax Reform Bill will affect the way
I want to know how the Tax Reform Bill will affect the way gambling winnings are dealt with. Now, you can write off your losses up to your winnings. I was told that the tax reform does away with that.… read more
TaxRobin
TaxRobin
Vocational, Technical or Trade School
1 satisfied customers
1. Should the option prices change when a company
1. Should the option prices change when a company surprisingly eliminates its dividend but its share price stays the same?2. Give two reasons why "short interest rebate" would be a negative interest r… read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
734 satisfied customers
I have a film production company LLC registered in Florida.
I have a film production company LLC registered in Florida. However, my husband and I just moved to Colorado. I'm putting together a co-production deal with a company out of Indiana. We'll be doing th… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,473 satisfied customers
I have set up an llc for the sole purpose of owning shares
I have set up an llc for the sole purpose of owning shares in a C-corp. The C-corp currently has no business activity and a value based on 44 million shares and par value of 0.00001$/share. The C-corp… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I am receiving a payment from my prior employment disability
I am receiving a payment from my prior employment disability insurance. Will I be taxed for that? … read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,473 satisfied customers
I'm getting ready to get a home equity line of credit. I own
I'm getting ready to get a home equity line of credit. I own my home outright and have no other liens. I plan to get about $ 50,000 line of credit, which is about 30% of home value. I plan to use proc… read more
Chad CFP ®
Chad CFP ®
Certified Financial Planner(R), Pro
Master\u0027s Degree
734 satisfied customers
I am considering, possibly, moving my 401k to a IRA. I am
I am considering, possibly, moving my 401k to a IRA. I am just in the starting phase of this. I still need to speak with my accountant.The retirement company that handles my account has sent, at my re… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
I have a Texas LLC and we sell agricultural parts for
I have a Texas LLC and we sell agricultural parts for tractors, we have a contract manufacturer make our proprietary parts, then sell them to farmers. Farmers are obviously tax exempt, but are we also… read more
abci168
abci168
Principal
27 satisfied customers
In 2017 my brother, my sister, and I inherited about 18,000$
In 2017 my brother, my sister, and I inherited about 18,000$ from our Father. The money came from stock shares that our Father left for us in his will. Our Father passed away in 2011. After several ye… read more
Barbara
Barbara
Enrolled Agent, Paralegal
3,473 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x