LLC or S Corp

[Rocky Verteramo]

Hi guys! I am new to BP and I am loving it! I was hoping someone could help me out with something. I just bought my first rental property a few months ago and opened up an LLC to put it under. I have been doing my research and I feel that I am going to be investing with a partner with fix and flips. So to get my feet wet, I am in the process of purchasing a cheaper home / reno to understand the process better. So I assumed I would just put the cash purchase of the home under my LLC. Then my bookkeeper informed me I should just put it under my personal name for now and then set up a possible S corp for my fix and flips, since fix and flips will be treated differently.

I have contacted my lawyer and am waiting to hear back on what to do, but with all this experience here I was hoping to get a little insight on your opinions and if it makes any sense!

Thanks guys!  

[Matthew Kreitzer]

For all matters related to legality, listen to your lawyer. I could point out a number of legal issues with what your bookkeeper told you (especially if he implied a knowledge of the law), but listen to your lawyer.

In terms of finances? It might be irrelevant anyway, since your LLC is most likely going to have the same tax treatment as an S Corp anyway....Ask a CPA.