I run a real estate company and we pay a lot of contractors for all types of things, work related to flips, inspections, running errands for us, surveys, etc. It's my understanding that any person/LLC we pay (Cash, Zelle/Quickpay, Check) over $600 that IS NOT an S/C Corp, should get a 1099. We've never done this. We still write those costs off as expenses (because they are), but we've never collected W9s from people we work with, or created a 1099. What's the risk here? It's my understanding that the risk here is that we can get penalized for this, but from a tax perspective, we can still write off those expenses and it doesn't affect anything there, is that right? From my understanding we'd have to issue 1099s to the following folks: General contractor Sub contractors Survey company Inspector Cleaner Anyone that gets over $600. Before we pay them, we should be asking for them to fill out a W9, right? Am I missing anything? I watched the video about this.

Have a question on LLC business structure, is an S-Corp supposed to be at the holding company level or individual LLC Level? I have two options here, I've confused myself - is one better than the other? I'd prefer to just have one holding company, ideally, but I'm not sure that's best and any tax implications, etc. surrounding that? My concern is that having mutliple S Corps would be a huge burden with payroll, etc. It would prob be easier to have all my active LLCs under one holding company that is an S Corp, and then all my passive LLCs that own properties, under another holding company that is passive. What's the right answer here? Whatever it is, would you mind explaining why one is better than the other?

Hey Guys, Just joined. How do I know I'm old? On a Friday not, I'm on a website that teaches you how to lower your taxes ; ). In all seriousness, excited to be able to lower my tax liability. - Why do you want to save money on taxes? Not just “to save money” — but what does that money mean for your life? Saved money is investible money, and my goal is to be able to recycle money and plant those money trees that will allow my family to be taken care of forever. - Where are you right now in your journey? Just starting out? Own rentals? Flipping or doing STRs? I own a real estate wholesaling company, and I'm starting to do more flips this year. Hoping to do 10 flips personally and 8 flips through my company, which I own with a partner. I own 2 short term rentals and double digit units. - What’s your #1 challenge right now — your “big domino”? The one thing that would make everything else easier? - The #1 challenge is growing and scaling the wholesaling business. I've hired an employee and training her to take my spot so I can focus on bigger picture things within the business. - Thanks!

We often get asked the "how to" instructions for setting up entities. I filmed this short video to help with the process. Please comment any questions you might have.

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