LLC or S-Corporation? - Posted by Frank Notaro

Real Estate Investing
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Posted by Lyal on January 07, 2003 at 08:19:10:

Frank,
Check the archives on this board and the legal forum. This has previously been discussed at length. Then check the articles section.
In general the approach is to use a Corp for active investing (rehabs, flips…)and an LLC for passive investing (buy and hold rentals) BUT it really depends on your specific situation.
All the best, Lyal

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LLC or S-Corporation? - Posted by Frank Notaro

Posted by Frank Notaro on January 06, 2003 at 22:18:51:

I am in the process of buying my first investment property, a 3 family in NJ. I need some advice as to which kind of entity to set up to minimize taxes. Should I start an LLC or a corporation? Do I have to pay social security tax (self-employment) tax on the profit? If so, is there any way to get around it?

Thanks in advance for your advice.

Frank Notaro