OfflineI was told yesterday by an expert in such matters that the proper way to form a company for short term investing (wholesaling, 3-6 month flips) is to form an S-corp, and for long term investments (rentals held for income, for instance), the best form is an LLC.
Also, on building business credit, is important to know the three different types of business credit which are tier 1, tier 2, tier 3 and tier 4 and to not get them out of order. Do not open tier 2 & 3 accounts until you have tier one accounts in place with a good payment history.
Of course, it's good to have business credit to finance down payments and repairs.
Rick Allison, Realtor
Amarillo, Texas USA
Find comps, private lenders and cash buyers nationwide: www.TheRealEstate.PRO
Foreclosure and pre-foreclosure search engine: http://tinyurl.com/b6w7h6o
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By the way, I found LegalZoom.com extremely affordable and easy last night as I was getting ready to do my S-corp. If you use Hannity on the check out page you'll save $10.00. Also, it's important to think about who you want to list as your "secretary," "president (probably yourself)," stock holders, etc. will be. It can be just you and your wife or partner, and you must issue stock certificates, although stock certificates can only be valued at $1.00, and you can even issue them to family members. It's not like you have to have a full board of directors seated, etc.
It is important to maintain your corporation, like have kitchen table or online board meetings and have the secretary keep minutes of the meetings.
Rick Allison, Realtor
Amarillo, Texas USA
Find comps, private lenders and cash buyers nationwide: www.TheRealEstate.PRO
Foreclosure and pre-foreclosure search engine: http://tinyurl.com/b6w7h6o
The People Helping People Movement: www.greatEPXsite.NET