How To Set up Your Rental Property Management Entity (LLC vs. Corporation)

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Clint Coons Esq. | Real Estate Asset Protection

Күн бұрын

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🏡 Are you a real estate investor managing your own properties or using an out-of-state property manager?
In this video I'll break down the differences between using LLCs versus corporations for your property management entity and explore the crucial tax considerations you need to remember.
We'll cover everything you need to know about setting up your own property management entity and navigating the complexities of tax status.
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Show Notes:
0:00 Intro
3:53 Anonymity Structure
9:18 Disregarded Entity
14:12 C-Corporation, Avoid S-Corp
19:43 Strategy Session
24:33 Outro
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ABOUT CLINT COONS
Clint Coons, Esq. is one of the founding partners of Anderson Law Group, Clint has grown his legal and tax firm to over 400 employees by assisting real estate investors with creating and implementing solid entity structuring plans. His success in these regards is in large part due to his personal investing experience. A successful attorney, real estate investor, and speaker, Clint has used his innovative and dynamic strategies coupled with knowledge borne from experience to help thousands of people save millions of dollars and build real wealth.
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The information provided in this video should not be construed or relied on as legal advice for any specific fact or circumstance. Its content was prepared by Anderson Business Advisors with its main office at 3225 McLeod Drive Suite 100 Las Vegas, Nevada 89121. This video is designed for entertainment and information purposes only. Viewing this video does not create an attorney-client relationship with Anderson Business Advisors or any of its lawyers. You should not act or rely on any of the information contained herein without seeking professional legal advice.
#realestateinvesting #llc #corporation #propertymanagement

Пікірлер: 62

@ClintCoons Ай бұрын

Hey, are you interested in diving deeper into this topic or chatting with an expert? Feel free to schedule a call here: aba.link/5yf

@trindon9439 Ай бұрын

I forward this video to 6 of my close friends. The first and best video I’ve seen with someone breaking it down in detail like this. I am so glad you elaborated on the use of the Ccorp vs the Scorp for this situation.

@ClintCoons Ай бұрын

Glad it was helpful and thanks for sharing the video

@thedufloth Ай бұрын

Great video Clint! I have to say, you are the first person I see recommended C-Corp for some PM companies. Thanks for all the information!

@ClintCoons Ай бұрын

You bet!

@Frankiep72 Ай бұрын

Another great video Clint! Can you share a sample agreement between the PM entity and the holding company?

@jayanddenissejones6648 11 күн бұрын

Awesome video Clint! Thanks for the info. I have become an Anderson client for all my Estate Planning! You guys are awesome.

@ClintCoons 9 күн бұрын

Thank you soo much.

@Outrageousconduct Ай бұрын

Best video I've ever seen on rental properties protection, outstanding!!!!

@ClintCoons Ай бұрын

Glad you liked it!

@tyjameson7404 Ай бұрын

Epic video ❤️🙌🏾🙏👊🏽👏🏿thank you

@10xAds Ай бұрын

I always find your videos very informative .. please keep them coming as you are doing everyone a favour by educating us .. thanks

@ClintCoons Ай бұрын

Thank you, I will

@victorial.4345 Ай бұрын

Clint , love your info and videos , i did not see any video about how to fill out the EIN application for the LLC to own real estate . can you do a detail video for that ? looks like the IRS EIN under real estate has updated a lot . thank you

@H82Miss Ай бұрын

Thanks Clint, great video and perfect timing. I am in the process of setting up entities for my first property right now and was wondering if I should set up an entity for PM. I'll be contacting Anderson for a strategy session soon.

@ClintCoons Ай бұрын

Doug where did you catch the king in your photo?

@aurelius7435 Ай бұрын

Great video Clint, thank you Wondering if (in addition to the objectives you discussed in the video) there's a way to use the management company to obtain working capital for renovating properties? Or would doing so conflict with the other goals?

@ClintCoons Ай бұрын

Not a conflict. Think of it as an advance.

@rc8850 Ай бұрын

Clint love the video. I am a platnium member. You guys are great. Quick quesiton for you - Wouldn't fringe benefits be taxable?

@ClintCoons Ай бұрын

Yes and no. It depends on the type of benefit. Medical, life, accountable plan etc. are not. Cash bonuses, gifts etc are.

@kimberlindy Ай бұрын

As a Platinun member are you not able to call and get an answer to this question?

@rc8850 Ай бұрын

@@kimberlindyI am sure I could have, but I was watching this video at midnight!

@willie3458 Ай бұрын

@ClintCoons in the beginning of the disregarded entity chapter, you mentioned having the property management entity pay the leftover amount from income to the holding company LLC. However, doesn't that create a paper trail in your property management bank account that links and exposes all of the properties managed under that holding company LLC? Is that something to be concerned about?

@jaychung6293 Ай бұрын

For the disregarded management company, could you instead distribute $ out to each property holding LLC's rather than going through the main one? What is the reasoning behind doing it the other way?

@ClintCoons Ай бұрын

It is a matter of preference

@mike2959 Ай бұрын

Clint. Great video with all the scenarios. Love that you’re talking more about tax planning. We currently have a separate PM for one reason really. Solo 401K. It’s a beautiful thing.

@ciprodriguez Ай бұрын

New SC law in regards in Wholesaling. Make a video please. I think it's a bad thing. Can't market a home with out being on the title. I see everything becoming just that. I Can't be an affiliate marketer because I don't own it. I can't run ads to a product I don't own in SC unless I have a marketing license. Is that where we are going? Do I need to start a Marketer's Association similar to NAR?

@davidlee906 Ай бұрын

What is maximum % you can pay management company under IRS rules? Every advisors tell different opinion, if I create C Corp Election Management Company for my properties, can I charge 15% C Corp Management to my invested LLC properties when I am collecting $40k per month?

@ClintCoons Ай бұрын

Absolutely because you are doing far more to manage your real estate than the typical PM.

@Convict2Corporate Ай бұрын

How about a Holding Company solely for owning, within a Trust and a main c corporation underneath the Holding with every other company with 80% ownership underneath as subsidiaries including an LLC for all my IP, and a s series llc for all rental properties? I'm going for the utmost asset protection and to get a valuation.

@ClintCoons Ай бұрын

If you would like a FREE 30-minute consultation, you can request one here - aba.link/clintss

@aurelius7435 Ай бұрын

If someone who owns several rental homes wanted to create an entity with which to build business credit that for acquiring and renovating additional properties, what is the best structure in which to do so from a tax and asset protection standpoint?

@ClintCoons Ай бұрын

Great question, to assist you further, I highly recommend you request a free 45-minute consultation to discuss this with my team so we can provide with you an answer that is unique to your situation. Visit aba.link/5yf

@avasdv 18 күн бұрын

I don't understand why you get deductions in a c Corp that you don't get in other structures. Maybe I'll ask you when I'm at your training in Dallas this next week

@ClintCoons 17 күн бұрын

Nice. We will definitely cover on day 2

@robertduffy5805 6 күн бұрын

Can you convert a disregarded PM LLC to a C-Corp PM LLC once it makes sense, or is it better to kill the Disregarded PM LLC and replace it with a C-Corp PM LLC years later?

@ClintCoons 6 күн бұрын

Depends. If in the same line of business then just change the tax election.

@yosefabramov2305 Ай бұрын

I am an electrician, what would be the best way to go? LLC or S corp or C corp??

@John-bx6if Ай бұрын

C-corp all the way.

@ClintCoons Ай бұрын

We need to look at your situation and run a comparison. If you would like a FREE 30-minute consultation, you can request one here - aba.link/clintss

@rcruz401 Ай бұрын

Will creating losses affect my chances of getting financing for a mortgage or cash out refinance on an existing mortgage with a lot of equity?

@ClintCoons Ай бұрын

Not typically. RE losses get added back into your income.

@danielnolte3579 Күн бұрын

What if you are in a lower tax bracket but you make around 47k a year in rental income after expenses? What type of entity should I create to minimize my taxes because my properties generate a lot of income but they are low cost properties so the write offs on them are lower.

@ClintCoons 10 сағат бұрын

@danielnolte3579 I am teaching an event this Saturday. If you would like to learn more you can register for one of our upcoming Livestream 1-day Tax and Asset Protection Classes for Real Estate Investors. Here is the link: aba.link/KZfaqAP.

@tyjameson7404 Ай бұрын

This guy is good 👍 🙌🏾❤️🔥🙏sorry Tobi 💔you have serious competition that has showed me two new hacks you never taught me in all your S-corp and C-corp videos 💔😥

@ClintCoons Ай бұрын

I haven't taught him these strategies yet. He can only handle soo much. 😂😂

@tyjameson7404 Ай бұрын

👍🏼🙌🏾👌😆

@kapper7848 Ай бұрын

Hi Clint. Is the property mgmt LLC a WY LLC?

@ajitdivaraniya3666 Ай бұрын

Same question I have

@ClintCoons Ай бұрын

No it would be set up in the state where the property is located.

@joebessette3383 Ай бұрын

If the PM LLC is not owned by the WY. llc than there is no hiding your ownership

@dab4901 Ай бұрын

@@ClintCoons Hey Clint, in your example, if your PM co. LLC - C-Corp is to be set up in the state where the property is located, would you recommend setting the entity up where the member of it is a WY LLC holding co.--different than the WY LLC holding co. that's the member of the real estate LLC's? Or is there no real benefit to having the PM co. LLC being owned by a holding co? Lastly, you keep referring to you being in Washington and the properties and 3rd party PM co. being in Missouri. Would your strategy change if you resided in the same state as your rental properties and 3rd party PM co?

@mackayleebeach Ай бұрын

Does the management entity need to follow state licensing laws?

@ClintCoons Ай бұрын

If you plan to manage property other than your own

@dontae-oi5gw Ай бұрын

How can you remain private when WY LLC are required to file Beneficial Ownership Information?

@ClintCoons Ай бұрын

The information you file is not available to the public.

@dontae-oi5gw Ай бұрын

@@ClintCoons Yeah I guess it'll stay private until the inevitable data breach/leak/hack. This requirement should have never passed. Their reason is to catch the bad guys, but the bad guys will always find ways to circumvent and avoid their procedures. Nothing will stop these criminals from putting random American identities tied to their criminal activity LLC's, ect. Interesting times we live in now.

@gavnonadoroge3092 4 күн бұрын

can you do a video about pitfalls of setting up entities and then not filing taxes correctly. because your videos make it seem like its a walk in the park, but in reality it can have devastating consequences.

@ClintCoons 3 күн бұрын

Noted.

@d3vi0uz1 Ай бұрын

5:56 go ahead and say it. Democrats.

@duppie75 Ай бұрын

Clint, What's the best way to contact you? I've reached out via Linkedin and via email and would just like to know if I'll indeed receive a response? Thanks..

@ClintCoons Ай бұрын

If you would like a FREE 30-minute consultation, you can request one here - aba.link/clintss