LLC or S-Corp

you can buy 'stuff' for your business and write it off with an LLC...
here's a link to a thread that you may want to read.

http://www.deangraziosi.com/node/927

Wishing you success,
Valerie

This is only my 2 cents so take it what it is worth. I would wait until you have a couple of deals under your belt before you start thinking of forming an S corp or an LLC. There are expenses involved with either like quarterly reports to you accountant, your accounting fees etc etc. Plus the fees to set one up. Here in NY state it costs 1000. plus just to get set up, so unless you have some cash laying around I would wait.
On the other hand you might want to start the process by talking to a RE attorney and an accountant just to get your questions answered. This way you will know which how and when to proceed. Hope this helps...Jan

Jan hit this on the head--
Since 98% of new REI fail or quit, you'd be wasting money and time.
Wait until you have done a couple or more deals!

When the times comes for LLC or S-corp, I suggest looking up Jay Mitton, Father of Assett Protection

I've got about 500$ off to start one and it would only cost me 500. I'll just check whether I can use the discount at anytime.

What are you going to do with these properties? If you are going to wholesale them you don't need it because you won't be holding the property.

For now since I want to raise capital, me and my partner are going to focus on wholesaling and buy and selling with transactional money. When we get enough we'll start buying properties to hold and rent.

Well, you should hold off like the others are saying until you get a few under your belt. You really don't need it at the moment. But, buy some 18x24 blank yellow corrugated plastic (about 25), red sharpie or a black sharpie (big ink tip), and head over to your nearest home improvement store to make a sign hammer. Check the video link below to see how to make a sign hammer.

http://youtu.be/ahFHyUzioQo

Either type of corporation has not only start up costs, but expenses through out the year, such as quarterly & federal returns which can cost a couple of thousand dollars.
I have had "S" corps for different companies since 1981. You do NOT have to draw a salary with a S corp; any profit or loss reverts back to the shareholders (you & your partner) at the end of the year when the corporate tax return is done.
I would not start up any type of corp. until you have several deals in under your belt.

I'll work on those bandit signs. I'll call them on Monday and ask how long is my discount going to last. Oh yeah, and thanks for the bandit sign video.

If I'm going to buying and selling and wholesaling, how do I deal with capital gains taxes?

David, I could give you many avenues worth of answers here, but I would def suggest you talk to an accountant. There would be many people that would say put it in your pocket and look the other way.
An accountant will give you every legal view as to claiming the money or not. Like I said there are many answers out there, as to which one you take is your call...Jan

Thanks, lucky me and my partner got an accountant lined up.

Jan is right only a CPA can give you the information that is right for you. Like the others have said wait till you have done a few deals before starting any company.

Here is what I have been told for LLC vs S-corp. If you hold properties for rentals you need a LLC. If you flip properties you need a S-corp. But again you need to talk to a CPA to find out what works best for you.

Hope to hear about your REI success soon.

Steve.