LLC or S Corp for My Rental Properties

[Joey Montefinese]

Hello everyone, 

I am in the process of finding my first investment property and I want to be prepared in case the multi-family unit I go under contract with is already rented out. I am looking to open a business account for the rent, plus another business venture I am starting and I wanted to know your thoughts on LLC vs S corp? Also, if I declaire one of those in my home State of NYC can that still be used for a property out of State?

[Brian Boyd]

@Andrew Freed- S corps are good for lowering your self employment tax if you are able to take a salary. If you are not able to take a salary, then you are simply creating more corporate formalities. Alternatively, you can form an LLC and elect to be taxed as an S Corp by filing form 2553.