First time watching one of your videos. PadSplit signs membership agreements with each member then signs a lease agreement with host. It’s a membership agreement not a lease agreement. I recently became a host after investing a year in research coliving. If you run the nonprofit and own the LLC I’m curious how IRS would treat this agreement bc you as the house owner benefiting if you charge more than median rents.
@lasvegashouston We are familiar with Padsplit and good on you for being a host! As to your question, the nonprofit is for public benefit. The LLC is a for-profit entity. There are reasons why you would not want the nonprofit to own real estate. Their missions are inherently different and within the codes it makes sense. I would recommend that you watch class No. 11 of our playlist about "How to start and operate a co living". Class No. 11 gives an option for a nonprofit attorney and they also have CPAs. This is a niche part of real estate and tax so I would suggest only dealing with licensed people who specialize in this very specific area. www.youtube.com/@KatiesHouseFoundation
First time watching one of your videos. PadSplit signs membership agreements with each member then signs a lease agreement with host. It’s a membership agreement not a lease agreement.
I recently became a host after investing a year in research coliving. If you run the nonprofit and own the LLC I’m curious how IRS would treat this agreement bc you as the house owner benefiting if you charge more than median rents.
@lasvegashouston We are familiar with Padsplit and good on you for being a host! As to your question, the nonprofit is for public benefit. The LLC is a for-profit entity. There are reasons why you would not want the nonprofit to own real estate. Their missions are inherently different and within the codes it makes sense. I would recommend that you watch class No. 11 of our playlist about "How to start and operate a co living". Class No. 11 gives an option for a nonprofit attorney and they also have CPAs. This is a niche part of real estate and tax so I would suggest only dealing with licensed people who specialize in this very specific area. www.youtube.com/@KatiesHouseFoundation