Generally speaking LLCs are ‘pass thru’ entities. As a result income will be taxed at your personal rate which is most likely higher that the corporate 15% rate (up to $50K).
Given this, active income are better done through C-corps.
However, in NYS you can elect that your LLC be taxed as a C corp if you so wish.
I saw your lease options FAQ post below and would very much appreciate an e-mail of your L/O letter also. (vvss@mindspring.com)
Since the post was down the page, I didn’t want to take the chance of you not seeing my plead.
Thanks so much.
Wow…thanks for the quick response.
I’m curious as to your PA Home Solutions, Inc. in your question and answers post. I would assume you are buying or leasing your properties in a C corp?
I’m about to set up a LLC for lease option transactions. Do you feel the LLC works as well for the L/O’s?
Yes, I think an LLC would work well for L/Os. I set up my business as a C corporation to allow for future growth like setting up benefits packages, hiring employees, etc. I also was looking at simply buying, rehabbing, and selling or simply flipping when I set up my corporation, which is another reason that I went with a C.