Thank you all for the replies.

I may have figured out why she did not want me to do this anyway. I received a call to do some computer work at her business, my primary business is IT Services and I found out she sold her business to someone else and is no longer in accounting. It has only been maybe 2 weeks since we spoke about setting up the corporation. I only found this out after inquiring about how it will be nice that the load is off her a little and this new person will be able to help and the new person told me she is now the owner. I have spoken to my backer who has one of his other businesses with her and we have both come to the conclusion that this change over was handled very poorly and we will be looking at other options. I have been on the fence with her anyway and this just made my decision easier.

There are different aspects to the question.

1. There is the credit side and having a company that is over 2 years old.

2. There is the liability side. Starting out with a company rather than keeping the liability directly in your name when you get started. Granted the person running the company will still attract much of the liability exposure even when there is a company holding the asset.

3. The hassle and the cost of the company when there is little benefit is an issue. Either you are investing in the future and plan to get to the future to gain the benefits or you are just wasting time and money now.

So, the accountant is partially right. It really depends on the objectives and time horizon. If you are dabbling with 1 or 2 investments then the accountant will still feel a company is not going to benefit you much. If you are starting a new business and expect to be in business for a while, getting all the normal business things sorted is the right way to go. That includes creating the company legally.

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John Corey

Real Estate Investor (REI) with over 20 years of experience.
Multiple states and countries; present portfolio spans 11 time zones.

Always open to answering questions. See the contact page on my blog; link below.

Pay it forward.
www.ChelseaPrivateEquity.com/blog

829,

Any updates on this? I am rather curious as to how you are moving along.

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You can roll with me or under me. I don't care which one you choose! - - "me"