Hi everyone
Im going to try and keep this as short as possible but still give enough details to hopefully get the advice I need. Thank you in advance for any help!!
My partner and I started a Real Estate company almost 3 years ago going through the ropes of building our reputation and getting the contacts we needed. We started out dealing with multimillion dollar homes discounted from the appraised value for purchase by investors. Long story short,..we're now dealing with Hotels/Casinos and other very large properties/businesses developments etc.
A little over a year ago we thought a deal we were working on was actually going to close so we (very hastily) set up a S Corp in TX (where my partner lives) She was told by her personal CPA (she doesnt deal much in businesses) that an S Corp was the way to go to avoid double taxation?
Please bare with me as I've only recently take over this job of figuring out what we need to do and am a complete idiot when it comes to what taxes are what, which is the better way to set up our company, if it needs changed etc.
So last night I was informed we are having 2 - 1 Billion dollar deals going into contract tommorrow(today)
My partner is under the impression that if we stay in TX we'll have Corporate Taxes to pay, possibly along with Self Employment Taxes, as well as our own personal taxes for federal, state, etc.
So we have both heard that setting up an LLC or other Corp in NV will help us avoid having to pay (some kind of) tax on the income our company receives and that we'll just have to pay tax on what we pay ourselves.
I was going to have her disolve the S corp in TX and I was going to set up an LLC in NV until I read somewhere that even though NV doesnt have corporate taxes etc that we may still be responsible for taxes because we live in a state other than NV. Im not completely sure which taxes the article was referring to as Ive been reading all kinds of stuff since 5am this morning....its all kind of a jumbled mess in my head right now
I know we will each still have to pay federal income tax and state tax(me only since she is in TX) but what Im wondering if its even worth it or necessary to move the company to avoid double taxation.
Reason being is I read somewhere else that that is one reason of having an S Corp since its supposed to be a "pass through" entity.
We do need to make some ammendments if we stay with the one we have now becuase 2 of the people we started the company with are not going to be with us anymore and were adding another.
Also with our company we are (or will be) paid by commission if/when something closes. The check would be made out to our company name and distributed to each of us how we have decided.
I am not a licensed agent and I dont do any negotiating or work that only licensed agents should do like negotiating or dealing with buyers/sellers but I do the due dillegence, run our website, work on Fee agreements, NCNDs locate buyers/sellers etc and basically assist my partner with whatever she needs. She is the licensed Real Estate Agent and we are bringing in her Broker to our company for a very small % because supposedly she has to be part of the company so our company is working legally. (She doesnt actually do anything though)
That brings me to another question if anyone happens to know. Am I even able to be paid if something closes since RE Agents are not supposed to pay or share commissions with unlicensed people? She says that I would be considered her Assistant and its ok, but I wanted to make sure.
I know I should be consulting an account and attorney for all of this but I do have any right now nor the money to pay one to help me figure this mess out. Hopefully all of this makes sense, Thank you so much again for any advice you can give. It is appreciated greatly!!
Im going to try and keep this as short as possible but still give enough details to hopefully get the advice I need. Thank you in advance for any help!!
My partner and I started a Real Estate company almost 3 years ago going through the ropes of building our reputation and getting the contacts we needed. We started out dealing with multimillion dollar homes discounted from the appraised value for purchase by investors. Long story short,..we're now dealing with Hotels/Casinos and other very large properties/businesses developments etc.
A little over a year ago we thought a deal we were working on was actually going to close so we (very hastily) set up a S Corp in TX (where my partner lives) She was told by her personal CPA (she doesnt deal much in businesses) that an S Corp was the way to go to avoid double taxation?
Please bare with me as I've only recently take over this job of figuring out what we need to do and am a complete idiot when it comes to what taxes are what, which is the better way to set up our company, if it needs changed etc.
So last night I was informed we are having 2 - 1 Billion dollar deals going into contract tommorrow(today)
My partner is under the impression that if we stay in TX we'll have Corporate Taxes to pay, possibly along with Self Employment Taxes, as well as our own personal taxes for federal, state, etc.
So we have both heard that setting up an LLC or other Corp in NV will help us avoid having to pay (some kind of) tax on the income our company receives and that we'll just have to pay tax on what we pay ourselves.
I was going to have her disolve the S corp in TX and I was going to set up an LLC in NV until I read somewhere that even though NV doesnt have corporate taxes etc that we may still be responsible for taxes because we live in a state other than NV. Im not completely sure which taxes the article was referring to as Ive been reading all kinds of stuff since 5am this morning....its all kind of a jumbled mess in my head right now
I know we will each still have to pay federal income tax and state tax(me only since she is in TX) but what Im wondering if its even worth it or necessary to move the company to avoid double taxation.
Reason being is I read somewhere else that that is one reason of having an S Corp since its supposed to be a "pass through" entity.
We do need to make some ammendments if we stay with the one we have now becuase 2 of the people we started the company with are not going to be with us anymore and were adding another.
Also with our company we are (or will be) paid by commission if/when something closes. The check would be made out to our company name and distributed to each of us how we have decided.
I am not a licensed agent and I dont do any negotiating or work that only licensed agents should do like negotiating or dealing with buyers/sellers but I do the due dillegence, run our website, work on Fee agreements, NCNDs locate buyers/sellers etc and basically assist my partner with whatever she needs. She is the licensed Real Estate Agent and we are bringing in her Broker to our company for a very small % because supposedly she has to be part of the company so our company is working legally. (She doesnt actually do anything though)
That brings me to another question if anyone happens to know. Am I even able to be paid if something closes since RE Agents are not supposed to pay or share commissions with unlicensed people? She says that I would be considered her Assistant and its ok, but I wanted to make sure.
I know I should be consulting an account and attorney for all of this but I do have any right now nor the money to pay one to help me figure this mess out. Hopefully all of this makes sense, Thank you so much again for any advice you can give. It is appreciated greatly!!
