Recommendations for new gig

[Alejandro Bautista]

Good evening! Wanted to inquire from a few experts on what route to take for a side hustle I plan on running out of my garage. My wife and I are past 150k W2s and I also have an S Corp out of IL for rentals I own. Which this new business out of Tennessee I am looking at either LLC or C Corp (S Corp is not recognized at a state level here). Would it make most sense to do S Corp federally with C Corp state or LLC state but S Corp federally. I will be investing roughly 10k into equipment for this new gig.

[Michael Plaks]

@Alejandro Bautista

Too late, but you should never put rentals in an S-corp. And you should never create entities without having a clear business plan of how such an entity would benefit you. Most of them do not and can even hurt you - as your S-corp with rentals.