LLC Vs Sole Propietership?

Any advantages to having real estate inside and LLC? How does the income hit me then? Would that be salary income or dividends?

Comments(2)

  • jeff120029th January, 2005

    What are you trying to accomplish with a business entity in lieu of doing business personally?
    A sole proprietorship provides you with virtually no asset protection, I don't know about the tax implications with an SP.
    An LLC is taxed as a flow-through entity. Any income by the LLC gets reported on your tax return as income. With an LLC you have much better asset protection. Your personal assets are not subject to liability when the LLC is sued.

    Good luck,
    Jeff

  • yzerone9th January, 2005

    I am aware of the asset protection and pass through income. I have just been told that all properties if possible should be within a LLC. I didn't know how that affects taxe rates and holding periods for a them vs personally.

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