To incorporate or not?

[versatile66]

I am very new to real estate investing, have yet to purchase my first. I am hoping some of you might share some thoughts on incorporating my business. I know I must consult with a good accountant to help with this but I am looking for food for thought at this point in my research. I want to avoid as many mistakes as possible in getting started.

Thank you in advance for your input.

J

 

[Thomas Beyer]

QUOTE (versatile66 @ Apr 3 2010, 08:49 PM)
Thank you in advance for your input.


more thoughts here:



http://myreinspace.com/public_forums/Real_Estate_Discussion/62-10292-54272-To_create_a_company_or_not.html#54272

 

[invst4profit]

Incorporating would be your first mistake entering into this business in my opinion.

Much higher tax rate and no better protection than not incorporating for a small investor.
Even incorporated you will still be personally held liable for all debts of the corporation and
subject to law suites.
Insurance is far more protection and less expensive than incorporation.

 

[MikeMcCrae]

From the financing perspective...it is way easier to get financing if you hold the property personal. (if it is a residential less than 5 suite property) There are a few exceptions to this but more lenders are available if it is privately held.