The proper entity structuring (forms of ownership) is extremely important for both beginning and veteran real estate investors. The wrong entity (or entities) can cost you thousand dollars in taxes, or in lawsuits! The three principal reasons for astute entity structuring Are:

1. Asset Protection - To protect your personal assets from being attached

2. Tax Reduction\Tax Savings - You want to legally pay as little as possible

3. Audit Proofing From IRS your taxes - NO audits = big savings!

In most cases the single best form of ownership that can do all three of the above is a Limited Liability Company (LLC) that is elected to be taxed as a partnership. An LLC is an unincorporated business entity filed under state law, in which all owners (called “members”) have limited legal liability.