Small Land Development business advice needed...

[buc10]

Im looking for some advice on a small land development business. I would be guiding my clients through the process of buying and building their home/property. My two concerns are... 1. What type of tax write offs come with this type of business? and 2. Is there benefits to making this business legit through becoming lets say a LLC company? Or should i just do it on the side without any registration? Im not looking for lengthy technical answers, just something simple to help me get started. Thanks!

[Freelancier]

So you're just offering advice and guidance about how to buy/build a home? That's not really "land development", that's more like "adviser".

Any expenses you incur on behalf of your business is a deduction; any income you make must be reported. Create an LLC if you need the liability protections. Get umbrella insurance policy if you want to be really covered.

[buc10]

Well I will be hiring the contractors to do the building, applying for permits, doing the blueprints and handling all project managing. My position might be called "owners rep". I just didnt know if there are any benefits to just handling all this and collecting a percentage of the entire project "under the table", or if its better to become a registered business.

[Harold Mansfield]

"Under the table" will get you into trouble because it's never truly under the table if someone claims you as an expense.
When you say "doing the blueprints" does that mean you are an architect?
If so, why not just offer this additional services as part of your overall Architect services?

[buc10]

I am not an Architect, but most townships that I work in do not require a registered architects stamp on drawings. But i agree, sounds like I will definitely register to be official. Thank you. Last question, anyone know what percentage of fee I should charge for lets say a 2 story home? I know it depends on how much im involved. But like i said above, I would be leading them through the entire project and handling most things myself. Only thing the customer would do is pick out the finishes(cabinets, flooring, doors, etc). And i will be subbing out all of the work. I will not be performing the work myself. Thanks for all the help people.

[MyITGuy]

I am not an Architect, but most townships that I work in do not require a registered architects stamp on drawings. But i agree, sounds like I will definitely register to be official. Thank you. Last question, anyone know what percentage of fee I should charge for lets say a 2 story home? I know it depends on how much im involved. But like i said above, I would be leading them through the entire project and handling most things myself. Only thing the customer would do is pick out the finishes(cabinets, flooring, doors, etc). And i will be subbing out all of the work. I will not be performing the work myself. Thanks for all the help people.

Sounds like you would be a "Project Manager" or "General Contractor". These types of people do exactly what your describing, then subcontract out anything that they do not specifically care for (Sometimes this can be each and every trade).

Regarding the fee, this is where you need to build a business plan and come up with appropriate expenses, profit and etc and still be competitive in your area.

[nealrm]

If you are going to help anyone buy property or advise on how to buy property, you will most likely need a real estate licence.

[buc10]

Good points guys thanks.

[Fulcrum]

You will need to be careful. Many areas require that a general contractor be licensed and insured before you can "build" a home for someone else. However, if you were to buy the land, build a custom home, and then sell it, you should be able to avoid that license. Check with a competent lawyer before starting any project like this.