Tuesday, January 25, 2005

Enterprise Organizations

That sounds impressive, doesn't it? No, I'm not talking about the TO&E chart on Star Trek. Every business has to have a form, and real estate businesses are no different. Go get one!

But which one? It used to be that incorporating was the smart choice, but it could create some paperwork hassles (including taxes). Now, though, you have the limited liability company, which is treated like a corporation for liability purposes (It shields you from liability.) but has the simple tax treatment of a partnership. So if you're in business, get your LLC on. Whatever you do, don't go as a sole proprietorship (which leaves you individually liable for anything that goes wrong) or a partnership (which leaves you liable for your partners' screwups as well).


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