entity structure - Posted by Matt_MO

Posted by Matt_MO on May 23, 1999 at 14:32:12:

Hi all-

I am currently in the process of getting real estate out of my name by setting up a C corp and an LLC this week. I was foolish enough to just start buying and selling with everything in my name. DUH!

Here’s my thoughts and I would appreciate help from those I consider experts (JPiper, JP, Bill Bronchick, Kaiser, Karp etc…) as well as anyone else experienced in this area.

I’ve heard that the Nevada corporation is preferable to all others for privacy and no state income tax. Now, if I do rehab flips in Missouri with this corporation, do I have to file a Missouri corporate income tax return?..if so, what is the advantage of Nevada being a income tax free state. It would be easier and cheaper (not having to file w/MO in addition to NV) to just be a domestic corp. that being the case. Anyone know?

Also, for L/O’s…what is the best entity? Would that also be my corporation (S OR C) or would the LLC be better if one wanted to avoid that pesky 15% self-employment tax…that is the goal here…that’s a steep price to pay and I want to avoid it at all costs. I know Mr. Bronchick has stated that rentals belong in an LLC with your C corp managing it for a fee (thus having more than one TYPE of biz for your corp…helps defeat the SE Tax).

Thanks everyone for your responses in advance.

Matt in Misery (MO)