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Craig

LLC

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If I start a LLC in NY etc. can I sign a option to purchase property out of sate and assign the option for profit without filing a LLC in that specified state?

 

Craig

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If I start a LLC in NY etc. can I sign a option to purchase property out of sate and assign the option for profit without filing a LLC in that specified state?

 

Craig

 

Maybe Jaret would be able to give me his opinion on this.

 

Should I be filling for a LLC or a S-corp? Should I file in NY or in another state?

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Craig,

 

Let me be sure I understand you correctly. Your NY LLC obtained an option to purchase out of state property (the "Forum State) and now you want to assign the option to another person / entity and have your NY LLC receive a profit / fee.

 

I dont see why this would be a problem. It is an issue that must be determine under the laws of the forum state. Absent some leglistaure that I am not familiar with this is probably ok (Remember though... i am only licensed in Florida and have no idea what state you are referring to)

 

The only caveat, is that some states have tax withwholding laws which come into effect when an out of state LLC or other entity does busines and profits in its state. The purpose of the withholding laws are so that the forum state can prohibit the out of state entity from profiting and not paying the forum states taxes ( IE income taxes). The way it often works is that the entity or individual that is making payment to the out of state LLC is obligated to withhold a certain portion of the profits. This is similar to the way FIPTA withholding works.

 

I hope that helps.

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Craig,

 

Let me be sure I understand you correctly. Your NY LLC obtained an option to purchase out of state property (the "Forum State) and now you want to assign the option to another person / entity and have your NY LLC receive a profit / fee.

 

I don't see why this would be a problem. It is an issue that must be determine under the laws of the forum state. Absent some leglistaure that I am not familiar with this is probably ok (Remember though... i am only licensed in Florida and have no idea what state you are referring to)

 

The only caveat, is that some states have tax withwholding laws which come into effect when an out of state LLC or other entity does busines and profits in its state. The purpose of the withholding laws are so that the forum state can prohibit the out of state entity from profiting and not paying the forum states taxes ( IE income taxes). The way it often works is that the entity or individual that is making payment to the out of state LLC is obligated to withhold a certain portion of the profits. This is similar to the way FIPTA withholding works.

 

I hope that helps.

 

 

Thanks for the information. You understood correctly.

 

If I am doing Lease Options and holding property is the LLC the way to go or should I do a S-corp? I would much prefer the LLC just to shield my assets.

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Craig,

 

 

LLC's are generally easier from a managemenr perspective, especially if you plan on having multiple members. Additionally, S Corp's may be subject to certain restriction (they may of may not be applicable in your case). If you have or have heard of any reason as to why an S Corp would be more favorable, I would certainly be interested in hearing it. Also, if you ever excercise the option, the LLC would have the option to purchase and presumably take title. I believe it is preferable to hold real estate in an LLC as opposed to an S Corp.

 

 

 

Sincerely,

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Craig,

 

 

LLC's are generally easier from a managemenr perspective, especially if you plan on having multiple members. Additionally, S Corp's may be subject to certain restriction (they may of may not be applicable in your case). If you have or have heard of any reason as to why an S Corp would be more favorable, I would certainly be interested in hearing it. Also, if you ever excercise the option, the LLC would have the option to purchase and presumably take title. I believe it is preferable to hold real estate in an LLC as opposed to an S Corp.

 

 

 

Sincerely,

 

Thanks for the info

Craig

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Craig,

 

Both the LLC and the S-Corp shield your personal assets from liability when your entity is sued.

 

Only the LLC shields the LLC assets from liability exposure when you are personally sued.

 

LLC is the way to go. If you need an S-Corp, have the LLC treated as an S-Corp for tax purposes.

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