Why Put Management in an S Corp? - Posted by Tjent

Posted by Rich-CA on January 05, 2008 at 10:29:41:

The case law behind separating a Corp from the owners is well established and the US Constitution declares a Corp to be a separate individual. That makes it more unlikely that a lawsuit will penetrate to the owners. Not impossible, however.

The LLC does not have a constitutional foundation and is reliant on current state laws and court decisions for its protections.

I prefer to keep management in a separate company because I create this company inside the state where it will be operating, whereas all my ownership is through LLCs established in my state of choice. I do maintain “Operating Agreements” between the companies and make sure all documentation is in place as though they were actually owned and operated by different people.

Why Put Management in an S Corp? - Posted by Tjent

Posted by Tjent on January 04, 2008 at 11:01:21:

After scouring the archives for an hour and a half I still need an answer to the questions: 1) If all my properties are in LLCs, does it help me to have a management company in a seperate entitiy; and 2) Why do most people choose an S. Corp for management instead of an LLC?