LLC Or Sub S ?

heathermarie profile photo

We plan on purchasing some rental properties and also my husband will be doing rehabs and construction side jobs. How do ya'll have your business structured? I know that it is not a good idea to have land/rental properties in a Sub S so I assume we need the rentals in a LLC. But for SE purposes on the contruction part and rehabs, I thought a Sub S would be better.
Any comments?

Comments(1)

  • cjmazur23rd June, 2004

    I think a couple big factors in my mind are:

    1) are there quirky state tax rules against LLCs (there are in CA)

    2) talk to a CPA to understand SE tax issues in S-corp v. LLC (drawing "reasonable" salary)

    3) if you have regular 9-5 jobs, does one structure over another benefit more?

    4) is a c-corp a reasonable soln give the fringe benefits that can be taken.

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