LLC / S-corp?

I have been told and always thought it’s better to keep long term properties in LLC and so short term prop/ buy-sell/ flips in S-corp. But the 2 activities should be done under separate entities. But the s-corp is such a hassle (tax withholding, filing. payroll etc). How feasible/ different would it be to convert the S-corp to an LLC and continue the buy-sell. The long term properties are in a different LLC



Comments(3)

  • finniganps23rd February, 2010

    You should talk to your CPA about this. There are a lot of potential issues with a conversion (potential built in gains tax) and you need to talk with someone who is very familar with your facts and goals.

  • ITBInvestor24th February, 2010

    Ditto what finniganps says... Or you can start a new LLC with a different charter (spelled out in the operating agreement)... keeping properties where they are... in any case, make sure your professional tax adviser is in the loop.

  • ITBInvestor21st October, 2009

    Tell your closing attorney what you are trying to do. There should be no extra costs other than minimal deed filings, depending on your state. I have done this several times in NC.

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