Starting a “side hustle” or obtaining a rental property is not as simple as just going online and setting up an LLC and buying property. There are so many things to consider and if you don’t have the ‘big picture’ of how to structure your business entity, you could be missing out on considerable tax strategies. Knowing the implications of operational income verses
investment income makes a huge difference.
Cleaning up a business entity is NOT what you want to have to address. It is far better to set it up properly BEFORE you begin. It is also more cost effective. Ask yourself “why” you are starting this business or ‘side-hustle?’ Take time to plan, strategize, and consider your goals, retirement plan, asset protection, and even an estate plan. You want someone on your team who is looking out for your best interests when it comes to tax planning. You’ll be glad you did!