(Attention Real Estate Investors…)

LLC’s Have Great Money-Saving Benefits, But Most Are Worthless!

 

Before telling you why, first the “Potential” Power of LLC’s

for real estate…Limited liability companies (LLC’s) are powerful

entities because they have all of the legal benefits of a corporation;

yet all of the excellent tax advantages of a general partnership; yet

avoid the legal disadvantages of a general partnership and avoid

the tax disadvantages of C-corps, S-corps and limited partnerships.

They also avoid much of the legal complexity of corporations and

limited partnerships. In short the best of all worlds…unlike any other

entity.

LLC’s can be used for all types of real estate

transactions…Residential rental, commercial, wholesaling, short

sales, rehabbing, new construction, sub-divisions, condo

conversations, etc. So powerful are LLC’s, they have diminished

the importance of limited partnerships, family limited partnerships,

C-corporations, S-corporations and land trusts (although they can

be combined with land trusts).

Plus, a properly structured LLC should…

• Protect your personal assets
• Save you substantial amounts of taxes
• Defend you against IRS attacks
• Prevent legal disputes and save you legal fees and hassles
• Enable you to successfully operate your real estate business.

But Most Do NOT!

Notice the above words “Potential Power”. Below are the

reasons why most LLC’s never reap the power of their great benefits.
Just about all attorneys, CPA’s and others, who form LLC’s, use

barebones, boilerplate LLC documents. Consequently, your LLC is

set up and operated WRONG, because these poorly documented

LLC’s…

Do not shield you, causing your personal assets to be totally

exposed. You therefore are not protected from legal actions

(when you should). It is not the size of the entity, but rather the

existence of complete and proper documents which provides the

protection from personal liability for the LLC members.

Do not save you in taxes (when they should). Having certain Tax

Elections and Tax Matters in the operating agreement and other

LLC documents can generate for you, yearly tax savings you didn’t

even know about.

Do not defend you against IRS (when they should). IRS auditors

typically examine LLC legal documents to see if they support tax

deductions and strategies. If they don’t, you are out the deductions

and A LOT OF MONEY!

Do not prevent legal disputes with partners or others (when

they should). Having the proper language would do this and save

you from costly lawsuits.

Do not give you important operating guidelines for

successfully running your business (when then should). LLC

documents (esp. the operating agreement) should also be your

roadmap to help you implement a profitable real estate business.

In short, most LLC’s simply do not give you

the significant dollar-saving benefits that a

well designed & documented LLC should give

you!

Now there’s a SOLUTION!

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