Hey all - I am US-based. I already have one business but am looking to diversify. We travel to Florida quite a bit as it is and I am thinking about killing two birds with one stone and starting an LLC or something and purchasing a place with it. I want to walk before I run and take our time with it so as a worst-case, it would be somewhere we’re using ourselves and testing out with rentals along the way. Best case, we like doing it and expand it. I figure it gives us a vacation spot, tax advantages, and a business opportunity.
I am looking for general advice on the startup, best practices, pitfalls to avoid, etc. from anyone who has ventured down the same road. Thanks in advance.
You don’t need to set up a business. Just buy the property in your name. Don’t overcomplicate a simple situation.
The business part is what I am trying to do though. For tax and liability reasons. I guess could you provide more detail if you don’t see a reason for that?
You’re just making a simple thing complicated. For a start, do you have the cash to buy a property? If not, you need a mortage. Who will lend to your new LLC? Probably no one. What then?
You can buy liability insurance as an individual.
What’s the difference in tax? Will you save enough to make all the complexity worth it?
Ok well assume that I don’t see it as overly complex and wouldn’t be using outside cash. Do you have experience in the space? If so, I’d love to hear what you did to be successful or if you went the non-entity route, what that looked like for you. Thanks!