Yahoo Answers is shutting down on May 4th, 2021 (Eastern Time) and beginning April 20th, 2021 (Eastern Time) the Yahoo Answers website will be in read-only mode. There will be no changes to other Yahoo properties or services, or your Yahoo account. You can find more information about the Yahoo Answers shutdown and how to download your data on this help page.

Should I Incorporate or get LLC for my Student Housing Company?

My business structure:

I am starting a new student housing company (I parted ways with my old partner so i'm not necessarily new to the business but new to the company formation). We sign master leases with large apartment complexes and house international students in them every year. The students pay us "x" amount and we pay the apartment complex the market rent while keeping any profits we obtain from the students.

Our revenue on each apartment is about $24,000 per year while our profit is about $6,000 per year (therefore we realize about 25% profit of our revenue per year). I am anticipating at least about $240,000 of revenue within 1 year of business ($60,000 profit).

For tax purposes, I don't want to be hit too hard with double taxation as I am also a real estate agent/independent contractor on the side. Please let me know if you can help as I am ready to move forward with all of this.

My question is:

Should I incorporate under a C Corp or file under an LLC? I am a one man team (may have 1 assistant in the future) at this point and do not anticipate going public/looking for venture capital funding any time soon. I will however be looking to utilize this company name as my new real estate brokerage so that I can hire agents in the future. Perhaps it's better to start at a C Corp now instead of having to transfer over later?

1 Answer

Relevance
  • 9 years ago
    Favorite Answer

    You are not ready to own a business if you don't know this stuff already. Get an experienced business attorney asap!

Still have questions? Get your answers by asking now.