If you are going into a real estate business with a partner, the best thing is to set up a LLP. It is very inexpensive and you can do it your self. It will generally cost around $150-$200 for the application charge. You can go online to your state’s Secretary of State website and print off the application. You just fill it out and mail them the money. They will set you up in a couple of weeks. Then go to the IRS site and file for and tax id#. You can do that online and will take a few mins. You can get an attorney to draw you up a S-Corp, but that will cost you at least $1000 and you will not get any major benefits in that business.
Real Estate/rental Property….llc, Llp, S-corp?
I am in the process of starting a part-time (full-time at some point) residential rental property business with a family member. There is a possibility we may venture into commercial real estate. We will be in business in Indiana and have no debt. I will be providing some financing with the majority coming from the family member. The long-term plan is to have me be the employee and slowly purchase a majority of the business from the family member. Are we better off as an LLC, LLP, S-Corp, etc?
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Chris D
June 30, 2009