C Corp vs LLC

[David Cheung]

I would like suggestions on which incorporation vehicle is best for me in Florida I currently have a FL LLC to use for making hard money loans or flipping properties. I plan to buy and hold a 10 unit multi family apartment. I do not want the income to flow through to my personal return because I want less income to be reported for better college financial aid for my kids. Jay Butler of www.assetprotectionservices.com has suggested a Nevada C corp to own my FL LLC, keep my existing FL LLC to make hard money loans, create another FL LLC to flip properties, and then a Nevada Series LLC to own long term rental properties. Any input would be appreciated from experienced owners. Thanks.

[Doug Rose]

As a general rule you should use an S-Corp for everyday business (flips) because of the tax advantage of the salary dividend split. LLC's are for passive business (rentals). You should never use a C-corp unless you have more than 15 employees... If its just you, use either an LLC or S-Corp.