Creating a new company is an exciting but often confusing venture. There are so many decisions to be made, and each choice will impact your business for years to come. The first thing that every new business owner must decide is which business structure works best for their needs. For small business owners, the three most popular options are Sole Proprietorship, Limited Liability Company (LLC), or S-Corp.
During this trying time, it is hard to place our minds anywhere else other than the pandemic at hand. But as I stepped onto my apartment balcony this morning and heard the birds singing, I realized those birds never stop! Amidst the ups and downs of my daily life, those birds can be counted on to sing a glorious song every morning. (By the way did you know that an issue that has come to light in Wisconsin is the taxation of gamebirds?)
The allure of real estate with the possibility of positive cash flow is an intoxicating one to invest into. Some investors look to purchase fixer-uppers and invest the money into repairing them and then selling for profit. Others look to go into rental properties and over time build up multiple units. REIT’s (Real Estate Investment Trusts) are also growing in popularity for those who wish to invest in real estate on a small scale without spending a lot out-of-pocket. There are inherent risks of real estate investing and we’ll look at five of them below. These five risks will cover those looking to invest in rental properties and general real estate (non-REIT).
- Market Risks
- Legal Risks
- Poor Tenants or Property Damage
There has always been a line in the sand when it comes to taxes for individuals and taxes for businesses and corporations. As you might expect, businesses and corporations are entitled to many tax breaks that individuals aren’t eligible for. One such tax break is the research and development tax credit.