Entity Structure for Wholesaling
Disclaimer: This article provides general information about business entity structures. It is not legal or tax advice. Entity selection has significant legal and tax implications. Consult an attorney and CPA before forming any business entity.
Sole proprietor (simplest, no liability protection), LLC (liability shield, pass-through taxation, most common for wholesalers), S-Corp (saves on self-employment tax above ~$50K profit, more complexity), series LLC (available in some states, separate liability per deal).
Key areas to understand
When to form an LLC (before first deal), state filing costs, registered agent requirements, operating agreement basics, and EIN registration..
Your profit calculator can help streamline this aspect of your business.
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