Real estate management company: when is it convenient to open it? In this report you will find out when it is convenient to open a company to manage income from the rental of real estate.
One of the problems that we often face in the Firm is linked to the possibility of setting up a real estate management company how to get a real estate license in Las Vegas, NV.
Especially for people who own several properties (houses or offices) it may be convenient, under certain conditions, to think about opening a property management company.
This is not a trivial choice, you need to make important assessments before tackling a choice like this. The establishment of a real estate company always involves considerations to be made on the revenues deriving from rents and management costs . All aspects that differ from the collection of the same proceeds as an individual.
For this reason, a choice of this type is never easy. I recommend that you contact experts in this area who can help you make the best choice.
Real estate income: a concrete case
As mentioned, to assess the situation I want to start from a concrete case of a person who turned to us to assess his situation.
This is a rather common situation to encounter, which is why I thought it useful to explain it in this contribution.
Establishment of a property management company
In a situation such as the one described, to understand if there is an advantage in taxing income with a company, rather than as a natural person, it is necessary to make an assessment .
It is a question of carrying out a simulation of the taxation required in both hypotheses: that of the private and that of the company.
These are two different types of taxation, with different rules and considerations to make.
The aspect that may be important to underline are the variables involved that can shift the convenience of one choice rather than the other. In particular, these are the following:
Analysis of the possibility of selling the properties in the future , also thinking about a future generational change;
Assessment concerning the person’s personal income without considering rental income;
Analysis concerning the indirect costs related to the transfer of properties to companies ;
Assessment of the income obtainable from the lease , also in light of the regulations on shell companies.