Building the Business Structure
First, you need to decide what type of property interests you as a buyer and investor. Buying distressed houses in New York provides the lowest business entrance barrier and can deliver the best returns; this makes distressed properties a favorite amongst new investors. If you decide to pursue this avenue, you’ll want to consult with a legal advisor to choose an appropriate business structure—sole proprietorship, LLC, S Corporation, etc.—that suits your objectives. This will have a major impact on ownership, liability, and taxability (as well as tax deductions!) for your business.
The New York City Department of Small Business Services can connect you with attorneys who will provide free one-on-one advice to guide you in the right direction. It’s precisely what you need to get your business off to a strong start. Once you have determined your business structure, an attorney can also help you file the correct forms with the Department of Corporations for New York state. Here are a few of the forms that you’ll need to get an idea of the current task scope.