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.

Comments(6)

  • jjetts41st March, 2004

    apparently to rent an llc...flip properties quick s corp.

  • JohnMerchant2nd March, 2004

    You may not be in the right pew here...there is a Tax & Tax Strategy Forum, so I'd suggest you repost there.

  • DaveT2nd March, 2004

    [ Edited by DaveT on Date 03/02/2004 ]

  • DaveT2nd March, 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.

  • InActive_Account2nd March, 2004

    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.

  • chomsky821st March, 2004

    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. :-?

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