LLC And Sub Chapter "S"
I recently went to form an LLC and the attorney said that I could form it with a sub chapter "S". I was wondering if anyone could comment as to whether or not this is possible.
Thanks in advance! 
I recently went to form an LLC and the attorney said that I could form it with a sub chapter "S". I was wondering if anyone could comment as to whether or not this is possible.
Thanks in advance!
Prior reply is correct. Not sure the rule of thumb is a good one, but certainly the LLC is different than a S corp. A S corp is just that - a corporation - but a LLC is not a corporation. The law of your state will have separate rules and regs for both.
Your advisor may have referred to how a LLC is similar to a S corp in one respect---- they can get pass-through taxation and avoid the corporate level tax.
An LLC and sub chapter S (also known as an s-corp) are two totally different entities with different characteristics and advantages/disadvantages depending on your individual situation.
A general rule of thumb is that you use an LLC for rentals or other long term holds and an s-corp for rehabs and other types of flips.
My comments here are as a layman and not as an attorney or accountant. You should seek competent professional advice before making any decisions.
GOOD LUCK
crf3boys is correct. Except the LLC would file with an S-Election, not as an S-Corp.