C-Corp or S-Corp
My husband and I set up our business as a C-Corp, in order to take advantage of the tax benefits/write offs as well as the asset protection that the C-Corp allows for. However, the first year I went to have the business taxes done, the tax preparer asked why we were not filing as an S-Corp. According to him, a C-Corp can elect to be designated as an S-Corp for tax purposes, but it depends on the type of business that the corporation engages in. I was told by another in the real estate business, that real estate is NOT one of those that can change over to an S-Corp. Does anyone have any insight into the allowability of us changing to an S-Corp with the IRS, and what that would mean for the tax write offs and asset protection?