The Hardest Decision - Which To Choose?

Its everyones question, I know the difference between an LLC, S-Corp, C-Corp, etc. but I just cannot put it together for Florida.

The deal is this, I want to begin a real estate investment firm in south Florida (Yes, I know everyone else does too). But I would like to file this week and I just cannot pick one. My options are this:

1) LLC In FL
2)S-Corp in FL
3)LLC In Nevada or Delware and file a foreign corp fee in FL

The infamous question is which one makes the most business sense? The company i am starting is a buy/hold/sell. Any thoughts or suggestions? I am looking at this mainly from an investor / tax perspective. I appreciate all responses! mad

Comments(4)

  • joecrane21st May, 2005

    Try this article:

    http://www.thecreativeinvestor.com/residential/Article452-Should_I_use_an_LLC_or_S_Corp.html

    If you then have a specific question, let us know.

  • bscivolette21st May, 2005

    Thanks for the article it was very helpful. A few direct questions from the article:

    First, the author says "First, transferring property to/from an LLC is not a taxable event thus saving you transfer taxes"

    Should I assume this means transfering to/from an S-Corp requires transfer taxes?

    Second, "I recommend an S-Corp for short-term wholesaling/rehab so you can save the 15.3% self employment tax."

    This is stated here but right below in the Q&A portion a member says with an S-Corp you must still pay the 15.3% True?

    Lastly, Another in the Q&A of this article - this questions was left unanswered, "good article. i believe that if you are a single member llc that you do not have to pay self employment tax. Is this correct?"

    Thanks for your time, these three answers should help me make my final decision.

  • bscivolette22nd May, 2005

    Mr. Crane,

    You certainly are filled with knowledge. I appreciate you taking the time to respond.

  • joecrane22nd May, 2005

    Thank you for the kind words. TCI has taught me a bunch and I try to give back to "the community".

    Joe

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