| A TIC investment can be very profitable and well | | | | Flexibility is one of the key draws to a TIC: LLC |
| worth your time, but before you get too far into it you | | | | placement, as the LLCs carry fewer placements than |
| need to be aware of all that is involved here and learn | | | | other entities. They are easy to operate, easy to get |
| about the different elements that are contained within | | | | into, easy to control, and offer the possibility of great |
| the investment. | | | | profit. |
| TIC: LLC Placement | | | | The members involved in the TIC are able to decide |
| A TIC: LLC placement refers to a "limited liability | | | | on their own how they want to split the profits and this |
| company", which is a type of business entity that is | | | | adds a lot of convenience and removes a lot of the |
| one of several forms of legal business organization. It | | | | hassle. There is no limit on the number of members |
| is important to decide if LLC is the best entity for your | | | | that an LLC can have, which is another major |
| business in particular, because this is not always the | | | | advantage. |
| case. | | | | The LLC is such a terrific, flexible entity, but remember |
| TIC: LLC placement companies are a bit of a hybrid of | | | | that there are certain risks and downfalls that are |
| other forms of business. They are treated more like | | | | possible with it as well. There is the self-employment |
| partnerships, particularly for tax purposes. There are a | | | | tax issue for one, which is something that tends to turn |
| few characteristics of TIC: LLC placement that you | | | | a lot of entrepreneurs away, but which should not |
| should be aware of, including the fact that all members | | | | always be discouraging. Because LLCs are formed at |
| of the LLC have limited liability. | | | | the state level and states differ in regards to their |
| LLC owners are referred to as members rather than | | | | individual tax treatment, there may be certain issues |
| partners, and one-person LLCs get sole proprietor | | | | that you will need to be concerned with depending on |
| treatment. As well, earnings with an LLC are subject | | | | which state you live in. |
| to self-employment tax, so this is a situation where | | | | Make sure that you are aware of all the details before |
| some people prefer an S corp, where the profits from | | | | getting into this, and make sure that it is going to be a |
| the corporation are subject to ordinary income tax but | | | | worthy investment for you. |
| not to self-employment tax. | | | | |