LLC Vs S Corp
Just looking on the low down.
As far as tax purposes am I better off using an LLC with a Sole member with me paying myself the profits that the LLC makes?
or
Is it better to have an S corp?
(Not sure on how the S corp works, maybe someone can clarify)
The short answer is...it depends.
Without going to full lengths on why (PM ME if interested) an s-corp is better for wholesaling or rehabbing while an LLC is better for long term holds such as rentals.
Actually just got through this conversation with my accountant today. His opinion is that the LLC is the best way to, especially if there is more than one person with ownership. Taxes can be higher with an S corp.
I would talk to your accountant for advice taylored to your situation.
> Without going to full lengths on why (PM ME if interested) an s-corp is better for wholesaling or rehabbing while an LLC is better for long term holds such as rentals.
Could you post your full lengths answer without PM you? I think many would like to hear that.
Thanks
I second the "full-length" request! Thanks,
Tim
I talked with a very well known asset protection attorney yesterday, and he said that LLC is better for flipping AND holding because of what is called a charging order.
In addition, you can choose to be taxed as a partnership, s corp, or c corp with LLC, so you get the best of both worlds. Of course, you should be holding property in some form of trust, which is owned by an LLC for max. protection.
Dave