Tax Advantages Of An LLC Vs. S Corp For REI
My partner and I are about to close on 3 4plexes in AZ in the coming weeks. We both live in CA and I have been trying to figure out if an LLC or an S Corp is a better fit for our situation. In reading through the forum I have been able to get some answers but I would appreciate any inputs. Thanks.
apparently to rent an llc...flip properties quick s corp.
You may not be in the right pew here...there is a Tax & Tax Strategy Forum, so I'd suggest you repost there.
[ Edited by DaveT on Date 03/02/2004 ]
Actually you really only have two choices, a corporation or a partnership. You have to elect how you want your LLC to be treated for tax purposes, and the only elections available to you with an LLC are partnership and corporation.
The default corporation is C-Corp so you have to make a further election to have your corporation treated as an S-Corp.
Suggest that you and your partner work with an attorney to work out a mutually agreeable partnership agreement.
An llc and s-corp are both pass through entities to your personal taxes. I use llc's for my rentals,as a method of wealth protection. I use a c corp for dealing/flipping.
I would use an LLC for the properties and a c-corp to control them for tax reasons. Too much info for the forums, get a couple of books to research. :-?