Business

So, you’ve decided to take a more proactive approach to your investing, and have decided to start investing in real estate, or have decided to invest in a business. While the long-term potential is much greater than that of the more traditional investments (stocks, bonds, mutual funds, money markets, etc…), there are also some pitfalls for the unwary investor. Some critical questions you need to ask now are: “How do I protect myself if the investment fails?”, “How do I reduce my tax liability?”, “How do I manage my investment?”, “How do I bring other people into the enterprise?”, and “How do I transfer my investment when I’m ready to dispose of it?”. The answers to these questions will outline the goals for your business, and will be largely determined by the form of business entity you choose for your new investment. In this article we will briefly examine some of the more common forms available.