Incorporating for Quickturn

[AnitaKuehn]

Hi there,

I understand that it is important to incorporate for Quickturn -- can someone please tell me the reasons for this. I assume mostly for legal reasons, & that there are some tax advantages, but I just wanted to know the details. Thanks.

 

[Thomas Beyer]

QUOTE (AnitaKuehn @ Dec 1 2010, 09:41 AM)
Hi there,



I understand that it is important to incorporate for Quickturn -- can someone please tell me the reasons for this. I assume mostly for legal reasons, & that there are some tax advantages, but I just wanted to know the details. Thanks.


In case the deal goes sideways .. so you are legally protected ..



HOWEVER I think you will get personally sued anyway IF something goes majorly sideways most likely anyway !



Quickturn is NOT FOR NOVICES .. do it only once you have done 2 or 3 "normal" deals !! Without experience the risk you screw up is quite high as the complexity BY FAR exceeds that of a normal real estate deal !



related posts on incorporation:



Pro`s and Con`s of creating a company for real estate holding:

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



Raising money/OPM options (JV vs. securities): http://myreinspace.com/search/public_forums/Real_Estate_Discussion/62-16913-85903-Raising_Money_for_your_venture_-_The_legal_way.html#85903



JV options: Pro`s and Con`s of LP vs. Corporation

http://myreinspace.com/public_forums/General_Discussion/61-10979-JV_vs_Limited_Partnership.html

 

[AndrewMacDonald]

Another of the primary reasons to incorporate is to keep your Quick Turn business separate from your buy and hold business. With Quick Turn you`ll be buying and selling houses so which is classified as "active" income By keeping your two businesses separate you avoid jeopardizing the more favourable "passive" income tax treatment of any traditional buy-and-hold investments you may already have.

 

[Thomas Beyer]

QUOTE (AndrewMacDonald @ Dec 1 2010, 01:53 PM) Another of the primary reasons to incorporate is to keep your Quick Turn business separate from your buy and hold business. With Quick Turn you`ll be buying and selling houses so which is classified as "active" income By keeping your two businesses separate you avoid jeopardizing the more favourable "passive" income tax treatment of any traditional buy-and-hold investments you may already have.
not really ..

you can mix passive and active income in ONE corporation !

however, from a liability point-of-view, it probably makes sense to separate them !

Be aware of initial and ongoing accounting costs though for many corporations !

 

[Aaron Moore]

I`m of the mind set to go out and make some money before you incorporate. When you`re making $100,000 per year with quick turn then you definitely want to get some advice on incorporating.
You can also get a deal under contract in your personal name, get advice from your lawyer & accountant, then close the deal in a business name.