Juanita lives in Florida and wants to do business both there and in other states. She is wondering how to set up her entity structure. Here is her specific question.

Q: We are in the process of setting up a business in realestate buying and holding to rent. We are also planning on wholesaling. We are not married. We live in Florida. We are purchasing in other states. How should we set up the company? Thanks

A: Good news for you - the fact that you are not married probably increases your asset protection, especially in Florida. Last year, a judge allowed a single-member LLC to be liquidated in order to pay debts of the member. That said, I would still rather form a holding company in Wyoming or Nevada, since they clearly have better laws. Be sure to talk to an asset protection attorney about this, like my friend and co-instructor, Garrett Sutton. You can reach him at http://www.sutlaw.com.

Be sure also to sit down with a CPA to work out your tax strategy. Remember that businesses, such as wholesaling, need to be in a separate entity structure than buy and hold real estate. For a referral to a good real estate CPA, feel free to call Siggy at my office - 866467.5809.

Warmest regards,

Tom