![]() ![]() While money going out can involve repairs and other payments to vendors for maintenance. Income can include rent and other revenue streams received from renters, for example. ![]() They can also help you track money coming in and money going out. There are comprehensive property management accounting platforms that can not only help you keep track of rent and fees, but can monitor expenses and pay regular bills. Keeping track of your owners’ properties can be easy as updating a spreadsheet (although we don’t recommend that). Keep all of this in mind as you start planning out the financial future of your company. How much income do you expect? What are your expenses going to be? How much should you put aside for the unexpected? Learn more about filing the tax status of your business here.ĭo you have a revenue goal in mind for your first fiscal year? If not, start thinking about one-it should be in your business plan. The profits are taxed as personal income instead of business income. S-corporations pass through the taxes to the shareholders, so there is no chance for double taxation. You will have to think about whether you want to file as a pass-through business like an LLC-where money passes through the business directly to you-or whether you want to file as a C corporation and be paid as an employee.Ĭ-corporations risk having a double taxation problem, but you shouldn’t have to worry about that if you have a good accountant who knows the laws. Most property management firms are set up as an LLC, or limited liability corporation, but S-Corps and C-Corps are also strong contenders with more legal protections. This is critical so that your personal assets are protected and separate from your business. Next, you’ll need to file your business for tax purposes and choose a legal entity. How Do You File Your Property Management Business? Get a breakdown of licenses, certifications, and associations through our blog post: Property management certifications that give you an edge.
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