bombercpa

thanks for the comment!

Just stopping by to say hi. I'm an admin for a mid sized CPA firm in Carlsbad, CA. Here's the website if you ever need to refer someone out here. www.ceallp.com

It's slowed down in the office with the summer (as usual) and the economy (not so usual). So with the blessing of my company, I've been working on my RE business between projects and even taking an afternoon off here and there to go look at houses or to meet with investors.

What's your thoughts on forming an LLC? I haven't really increased my income significantly yet so thought I'd wait till the end of the year and decide. My CPAs don't see it as necessary even if I were to start bringing in cash from wholesale deals but they are not RE investors and may not understand the special needs as well as you might.

Hope you have a great weekend. And stay as cool as you can out there.

Wendy

i wanted to share this with you. i belong to a private org. member only, membership by invatation only, i like to invite you in to it

www.globalinformationnetwork.com
code 1500379

Hey Alaska,

Well, I wish I was in your neck of the woods. 114 today in AZ! Thanks for the invite. What are your experiences and has it been positive for you?

Seems great, but I definately can't afford the membership right now, Once I don't have to buy a million diapers for my triplets anymore, I might be able to afford it! lol

Definately give me a break down about your involvement in the program please.

Good look with REI stuff in good ole Alaska! Can't you see "Russia" from there? For some reason, I heard that recently!

Hi Wendy... My fellow bean counter!

Thanks for the message. Sounds like you are working for a pretty good group over there and I will refer anyone that needs help in that area. I'm also happy to see you are exploring REI. I trully believe it is the path to financial freedom!

Well, should you start a LLC? That really is a good question, and I agree with your guys that it may not be necessary at this time. First off, have you received any monies from REI efforts as of yet and what type of income? Reason I ask is because let's just say you are "birdogging" right now so all you are really recieving is fees for your services. In this case, there really isn't any liability exposure which is definately one of the reasons for a LLC. And the amnount you are receiving makes a difference too becuase if your only receiving a few thousand dollars a year then the cost benefit relationship really isn't there especially with the high fees assessed by CA. There is also the cost for accounting, tax preparation, etc but you probably would be able to get a pretty good deal for anything you could not do yourself!!

I know that for me personally, if I was generating enough income from services, such as birddogging, I would most likely go the S-corp route rather than an LLC. See, big requirement of an S-corp is that you take a reasonable salary. So if you do that at say $30k and then you have another $30k in profits, there is no additional taxes for payroll (self-employment taxes essentially) on the $30k profit. Some like to call it the FICA tax game but as long as you are paying yourself a reasonable salary, your in good shape. There is a LOT more to it, but this is one of the keys to look at, and potentially safe money with in the long run. Then down the road, as you actually acquire property to flip or hold, you could then set up additional LLCs, possibly owned by the S-corp (maybe!! lots to look at here), or even better, have a trust own them. Whew.... Sounds confusing huh. It can be, an there is no way to answer your question in one fell swoop!! But, I think you are on the right track, so keep inquiring and definately ask some more questions about options from your group too.

I hope I helped a little bit, but as I said, a lot of times it takes many meetings to figure out what is the best way to structure your business.

Take care,

Robert M. Burkett CPA

Well hello!
I just saw you're online...
Keep on keepin' on!

Hey Lean... Thanks for saying hello. Right back at ya!

Hey Robert,

I was wondering what is the easiest way to do a change of address on an LLC. Also what amount fees(if there is any) am I looking towards paying being im in California.

Thanks in Advance, Ron

Well, I'm in AZ but I'll give you the best advice I can. Most likely, you would want to change the address with whomever you actually set up the LLC with. Probably the CA Franchise Tax Board, but like I said, I'm not too sure. Who ever it is, you just want to amend your Articles of Organization.

To change it with the IRS, there are 2 ways to get it done. If you haven't already filed the tax return, then you can make the change on the return and mark the "Address Change" box on the first page. Otherwise, go to www.irs.gov and download form 8822 and that should do the trick. It should have the instructions but it is pretty self explanatory.

I'm not sure if there are any fees to make the change in CA, but I know for sure there is nothing from the IRS. Surprising huh!! I do know that even if you have 0 profit, the CA Franchise Tax Board requires you to pay a minimum of $800 per year, which is pretty steap.

Hopefully the info I did provide helps out a little!

Take care and good luck with your REI career. If you need a good CPA for your tax & accounting needs, just let me know!

Thanks,

Robert M. Burkett CPA

I enjoy your journal and reading about your progress along the way. It seems like real estate may become more of a passion for you than accounting. Yes, I can relate. At least you will be able to keep an eye on the numbers as the deals role in! Good luck with real estate investing. Believe and Achieve! - Joe

Just wanted to say hello. It's good to have professional people here on this site. My wife is a CPA too. Believe me that is both good and bad. She keeps an eye on the money that I'm racking up on my deals. But, she won't let me spend any of it---except only on more deals. Something about, I have to learn how to grow the asset before I can spend it. I'm an Architect so what do I know about assets. I only understand materials and how to spend my clients money.

Hey, I'm glad you're here, and best regards on all your real estate endeavors.

southstar

I just updated my journal but I wanted to come here and thank you again.

I just went to your cpa webpage... Just wanted to kindly note, I dislike quickbooks.. makes my eye twitch

Not really, its just that I use to do all the finances for justins dad construction company two years ago and when i started the lady before me had just made a HUGE mess of the program. it showed that the company was over 1 mil in debt but obviously that wasnt the case. it was just... grrrrrrrr... I still have nightmares.

happened to be online for the first time in quite awile and saw you're username, so I read your Bio, and thought i'd just give ya a lil shout out cuz of ur invite... started about a week b4 ya in june also, have ya been able to put anything 2gether yet?I signed up for Dean's coaching about a month ago and am try'in to get my first deal done by years end. Also am in the process of finding a new home for my wife and I. Really want that gov. incentive money for future deals or put back in for more equity in our home later.. wud'ya think? Jeff

I have wanted to stop by your guestbook for awhile now!

Love your profile! Wow...triplets at 3!! It must be hectic around your house. But a lot of fun too!

We don't have children yet as we're still newlyweds (but we plan on it) which adds to the urgency for me of getting all of this real estate stuff in motion!

Anyway, I absolutely look forward to being updated on your real estate happenings through your journal (I have it bookmarked), staying close DG buds, and keeping one another other encouraged.

Hope you have a great week this week!
Louisa
p.s. Great info you share above on setting up an LLC.

Just wanted to drop in & say hello. How is everything going with REI? Keep in touch on your end.

Everyone Can Make A Difference!
John A.

Hello Robert,

With your kind invitation, I'm writing a note. I was bookmarking a few journals to keep up on and saw your entry on Louisa's journal. Now I will bookmark yours as well! I was glad to see someone from the Phx area. Hope to be sharing info on deals in the near future!
Liz
Phoenix (Ahwatukee)

How are you? And, thank you for signing my page! I would love to connect with you when we can. Although, the meetings have kinda gone by the way side as of late, I do plan on attending others in the area or continue to try and set up an EDGE - AZ Group whenever possible.....

It's really difficult these days without the time that everyone so desperately needs.... But, never quit I say!

Let's make sure to stay in touch okay? Do you have a journal yet?

Thanks,

Robert

Heah, my name is Javron I am definitely , DID I SAY DEFINITELY ,Yes interested in meeting up with a few of you. Did you guys ever set up a meeting?I am a busy man but I will make time for success,to learn, and anything else I can do to help each other out. Plse let me know, My number is 602-663-0975, my email is moniejavron@****

Whats up buddy!! I had to stop buy your spot on this New Years Day. I wish you and your family a healthy and wealthy New Years. By the way I was serious about you getting on the ball and making things happen in the REI world. Somebody has to introduce me to the beautiful Real Estate world of Texas when Im ready to cross that plateau. LOL

Best Regards,
Shane Gore

Let's see a CPA that is also a DG student and will understand what and how I do what I do. Give me a few months and I am going to need a cpa, and probably going to have a zillion questions.
You are in Az but Shane mentioned you showing him Tx. I am in Waco at the moment. I will be spending some time in Az very soon(Tucson)then moving from Waco to Victoria, Tx.

Scott

Hi there. I have been reading various user journals and noticed you have posted in every journal I have read. Alot of what you write I find absolutely funny and appreciate all that you bring to your posts.

I am a fellow Arizonian (Scottsdale and Northern Phoenix) but have been away for 15 years. I someday hope to return and bring my daughter Marina who was born there in Phoenix back home to see all she has missed. The colors of the rocks and the way Camelback mountain looks is so missed.

Anyways, Im sorry I was rambeling, just wanted to say hello and thanks for the laughs.

Kevin

hey pal just wondering if all well with you.miss chatting with you !!pm me if u ever need anything and cant wait to hear from you again !!
jay

not sure if you still visit this site, but I thought I'd sign in your guestbook and say Hi. Congrats on your triplets... my brother has triplets (2B, 1G), they're grown up now, but I do remember the days when they were 3!

hope you're still doing rei; plus being in Scottsdale already, you're practically DG's neighbor!

Cheers,
Valerie