Investor · San Francisco Bay Area · Member since 2023 · 1 post · 1 vote
Hi folks, what are the opinions on setting up a separate LLC or an S-Corp for marketing purposes (e.g. to be put on our company website, communicate with brokers)? This entity would not hold property, other assets, or receive income.
For context, my business partner and I have a separate LLC entity structure for our investment properties: one holding LLC in WY that owns two child LLCs in NC. Each investment property we have is held in the respective NC LLCs. We do not want to use our WY LLC as our marketing face for liability purposes.
Sounds reasonable... But, what would its income be? Just looking at if the IRS will declare it a "hobby," or won't you care since its for branding purposes and it directly won't make any money?
Subsequent to that, I tend to think the S-Corp is oversold when its one person, even two, especially when you are starting out. Of course, the accountant will want to set one up and bill you annually for the additional filing and maintenance fees. But, does it really save you that much in FICA / SE taxes? Especially when the members have day jobs so already many time nearly maxing out their FICA limit? Also, if you aren't making that much, then the S-Corp is costing you much more..
Sorry I am not immediately understanding what are you marketing when it appears you have two rentals(?)