Posted by JHyre in Ohio on October 19, 2003 at 19:32:31:
Unearned income, so no SS tax either way. S-Corp pass though is quirky on losses and distributions of property. For notes & rentals, I’d probably go with LLC.
John Hyre
Do S-Corp and LLC pass-through the same? - Posted by Dave
Posted by Dave on October 19, 2003 at 10:38:15:
I?m considering setting up either an S-Corp or an LLC, mostly to hold notes and/or act as trustee for my RE and notes, maybe hold RE if it makes sense. Generally, the notes will payoff in less than a year, I will not be selling the notes, only waiting for payoff. I?m not sure if this would be considered earned income (subject to self-employment tax) or portfolio income, I think portfolio. In either case, do both entites pass-through that type of income the same?