How To Set up Your Rental Property Management Entity (LLC vs. Corporation)

I am an electrician, what would be the best way to go? LLC or S corp or C corp??

What is maximum % you can pay management company under IRS rules? Every advisors tell different opinion, if I create C Corp Election Management Company for my properties, can I charge 15% C Corp Management to my invested LLC properties when I am collecting $40k per month?

Thanks Clint, great video and perfect timing. I am in the process of setting up entities for my first property right now and was wondering if I should set up an entity for PM. I'll be contacting Anderson for a strategy session soon.

Clint, What's the best way to contact you? I've reached out via Linkedin and via email and would just like to know if I'll indeed receive a response? Thanks..

Hi Clint. Is the property mgmt LLC a WY LLC?

Great video Clint! I have to say, you are the first person I see recommended C-Corp for some PM companies.
Thanks for all the information!

Does the management entity need to follow state licensing laws?

Great video Clint, thank you

Wondering if (in addition to the objectives you discussed in the video) there's a way to use the management company to obtain working capital for renovating properties? Or would doing so conflict with the other goals?

For the disregarded management company, could you instead distribute $ out to each property holding LLC's rather than going through the main one? What is the reasoning behind doing it the other way?

New SC law in regards in Wholesaling. Make a video please. I think it's a bad thing. Can't market a home with out being on the title.

I see everything becoming just that. I Can't be an affiliate marketer because I don't own it. I can't run ads to a product I don't own in SC unless I have a marketing license.

Is that where we are going? Do I need to start a Marketer's Association similar to NAR?

Another great video Clint! Can you share a sample agreement between the PM entity and the holding company?

Clint. Great video with all the scenarios.
Love that you’re talking more about tax planning. We currently have a separate PM for one reason really.
Solo 401K. It’s a beautiful thing.

I forward this video to 6 of my close friends. The first and best video I’ve seen with someone breaking it down in detail like this. I am so glad you elaborated on the use of the Ccorp vs the Scorp for this situation.

Clint love the video. I am a platnium member. You guys are great. Quick quesiton for you - Wouldn't fringe benefits be taxable?

Will creating losses affect my chances of getting financing for a mortgage or cash out refinance on an existing mortgage with a lot of equity?

Clint , love your info and videos , i did not see any video about how to fill out the EIN application for the LLC to own real estate . can you do a detail video for that ? looks like the IRS EIN under real estate has updated a lot . thank you

How can you remain private when WY LLC are required to file Beneficial Ownership Information?

This guy is good 👍 🙌🏾❤️🔥🙏sorry Tobi 💔you have serious competition that has showed me two new hacks you never taught me in all your S-corp and C-corp videos 💔😥

Epic video ❤️🙌🏾🙏👊🏽👏🏿thank you

If someone who owns several rental homes wanted to create an entity with which to build business credit that for acquiring and renovating additional properties, what is the best structure in which to do so from a tax and asset protection standpoint?

Best video I've ever seen on rental properties protection, outstanding!!!!

How about a Holding Company solely for owning, within a Trust and a main c corporation underneath the Holding with every other company with 80% ownership underneath as subsidiaries including an LLC for all my IP, and a s series llc for all rental properties? I'm going for the utmost asset protection and to get a valuation.

I always find your videos very informative .. please keep them coming as you are doing everyone a favour by educating us .. thanks

@ClintCoons in the beginning of the disregarded entity chapter, you mentioned having the property management entity pay the leftover amount from income to the holding company LLC. However, doesn't that create a paper trail in your property management bank account that links and exposes all of the properties managed under that holding company LLC? Is that something to be concerned about?

Awesome video Clint! Thanks for the info. I have become an Anderson client for all my Estate Planning! You guys are awesome.

Can you convert a disregarded PM LLC to a C-Corp PM LLC once it makes sense, or is it better to kill the Disregarded PM LLC and replace it with a C-Corp PM LLC years later?

can you do a video about pitfalls of setting up entities and then not filing taxes correctly. because your videos make it seem like its a walk in the park, but in reality it can have devastating consequences.

What if you are in a lower tax bracket but you make around 47k a year in rental income after expenses? What type of entity should I create to minimize my taxes because my properties generate a lot of income but they are low cost properties so the write offs on them are lower.

Any harm (tax-wise) by having the Blue Box select to be treated as a S Corp. In particular, will I lose out on accelerated or bonus depreciation? The Red Boxes are still plain Jane LLCs.

You are so extremely help and such a wonderful teacher THAAANK You💛

Do you need any documentation around how you pay your PM LLC? for ex. you mentioned 20%+ 1month for every turn? Or can you just pay that out?

Don’t you need to be real estate broker in order to establish property management company?

Great video, but what if im only setting up a property management entity without owning property? Only management. Wouldn't S - corp make more sense then?

Thanks!

Thank you Clint. Please advise how to set up the WY Holding LLC for tax purposes? SM or MM partnership with my wife.

Can you buy prooery in another state with a Wisconsin LLC

You're awesome! Thank you for sharing your smarts and expertise, God bless you!

Do you keep family and business separate?

Think AI can replace tax advisors?

Grate information

Amazing

I’m I correct by saying that the c corp that u set up in this example will be taxed at 20% but it’s still better because if u didn’t set up the c corp it would be taxes at the federal tax rate
So that’s why u set up the c corp so u can get a deduction and avoid the federal tax rate which is higher than the c corp rate ? But ofc this is only smart to setup if u have a net gain at the end of your tax year because the goal is to create a loss or 0 gain so u pay no taxes

My husband have property in Jamaica and his family is doing a terrible job of managing it we live in the states what should we do??

You mention not to have payments going to holding company. Is it a problem to have the holding company as primary on the bank account with property llcs named on account. Payments go to property llcs but all go to same account to simplify banking? Separate books are kept for accounting purposes.

Does the management company LLC go under the holding company? If not, why?

Why wouldn’t the PM entity pay the rent (minus 10% management fee) to the LLC that owns the property & that LLC pay its own expenses/taxes and then whatever is left over transfer that amount to the holding?

this is the best explanation I have seen for the topic. Excellent!