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AVOID DOUBLE TAXATION. Pass-through entities like LLCs and partnerships allow business income to flow directly to your personal income tax return, eliminating the need to pay corporate taxes first. This can significantly reduce your overall tax burden. MAXIMIZE DEDUCTIONS. Claim various business expenses, depreciation, and other deductions to reduce your tax liabilities. OPTIMIZE LIABILITY POTECTION. Separate your personal assets from business debts and lawsuits, ensuring your financial security against unforeseen circumstances. MINIMIZE SELF-EMPLOYMENT TAXES. Depending on your entity structure and income level, you may benefit from reduced self-employment taxes compared to sole proprietors.
environment and favorable tax laws. This entity serves as the parent company and holds ownership interests in other entities. Subsidiary LLCs are then formed in the states where the real estate investments are located for passive income, or in your home state for active income. These LLCs manage the day-to-day operations of the properties and generate income.
and tax advisors who specialize in real estate. Our team at PRIME Corporate Services is always happy to help! CONSIDER YOUR FUTURE NEEDS. Choose a structure that can accommodate your growth plans and adapt to evolving regulations. REVIEW REGULARLY. As your business evolves, revisit your structure and ensure it continues to meet your needs. STAY INFORMED. Keep up to date with changes in tax laws and regulations to optimize your strategy.
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This strategic approach offers several advantages: ▷
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TAX OPTIMIZATION. Holding companies can be structured to minimize income taxes by offsetting profits against losses. Additionally, income generated by the subsidiary LLCs flows through to the holding company, avoiding double taxation. PRIVACY AND ANONYMITY. Holding companies provide an extra layer of anonymity by shielding your personal information from public records. ASSET PROTECTION. By separating your personal assets from business holdings, you can protect your wealth from potential lawsuits or creditors.
BUILDING YOUR LEGACY, ONE BRICK AT A TIME
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Choosing the right entity structure and maximizing tax opportunities are crucial elements of a successful real estate investing journey. By understanding your options, seeking professional advice, and taking proactive steps to optimize your structure, you can unlock significant benefits and build a lasting legacy for yourself and your family. Remember, the foundation of your real estate empire starts with a solid legal and financial framework, and proper entity structure is a cornerstone of that foundation. •
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RISKS AND CONSIDERATIONS: NAVIGATING THE LANDSCAPE It's important to acknowledge that each entity structure comes with its own set of risks and considerations; therefore, consulting with legal and tax professionals is crucial. They can assess your specific situation, recommend the best structure for your needs, and guide you through the setup and compliance process. Remember, a well-planned and optimized structure can become a powerful tool for building your real estate empire.
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Remember: Although holding companies offer significant benefits, it's crucial to comply with all legal and regulatory requirements. Consulting with experienced legal and tax professionals is essential to ensure your structure is properly set up and managed.
TAX BENEFITS: BUILDING YOUR WEALTH BRICK BY BRICK
OPTIMIZING YOUR STRUCTURE: A ROADMAP TO SUCCESS
TOMMY THORNBURGH
Tommy Thornburgh, president of Prime Corporate Services, is an accomplished and highly sought-after business consultant specializing in entity formation and tax-saving strategies. With more than 15 years of
It's not what you make, it's what you keep President, PCS
The true power of proper entity structure lies in its ability to unlock significant tax advantages. By choosing the right structure, you can:
Here are some key steps you can take to optimize your entity structure: ▷
industry expertise, Tommy has helped tens of thousands of individuals structure their businesses, minimize tax burdens, and maximize profitability. Under Thornburgh's leadership, Prime has helped more than 160,000 entrepreneurs structure their businesses and save hundreds of thousands of dollars in taxes.
Tommy Thornburgh, President of Prime Corporate Services, is an accomplished and highly sought-after business consultant specializing in entity formation and tax-saving strategies. With more than 15 years of industry expertise, Tommy has helped tens of thousands of individuals structure their businesses, minimize tax burdens and maximize profitability. Tommy gives all the credit to his team for truly making a difference over the last 11 years he’s been at PRIME and oversees more than 70 Corporate Advisors. Under his leadership, PRIME has helped more than 160,000 entrepreneurs structure their businesses and save hundreds of thousands of dollars in taxes. Tommy takes immense pride in the remarkable scalability and growth of PRIME. Over the last 11 years, the company has expanded its workforce to a talented team of 200 professionals, including attorneys, CPAs and dedicated administrative support. Tommy has been self-employed since he was 18-years-old and is an avid real estate investor. He has brought on many friends and family to the PCS team and is proud of fostering the close family culture that exists today. In his free time, he loves spending time with his wife and two young daughters. He'll take any chance he can get to play a round of golf.
CONSULT WITH PROFESSIONALS. Seek guidance from experienced legal
www.primecorporateservices.com
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