How to Tax my Income in a LLC

How to Tax my Income in a LLC

Real Estate Investor · Madison, WI · Member since 2016 · 19 posts · 2 votes

Hello All!

I'm very excited to announce that I am in the process of purchasing my first two single-family homes to begin my real estate career. I am purchasing these properties with another local investor where we formed a LLC. I have done some research and I have seen many different views on how you should tax your income. Would the best (tax efficient and easiest to do) way to file my taxes is add the income from my LLC to my 1040 Schedule E or should we file as a C-Corp or other entity? I am a beginner to this industry to any advice from other professionals or others who have had personal experience in this issue, the help would be appreciated.

Stay great and get ready to rock 2017!

Jason Meyers

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  • Daniel HymanBusiness Member
    CPA · Milwaukee, WI · Member since 2016 · 2k+ posts · 1k+ votes
    9y
    Jason Meyers very exciting news! I wish you well on your first purchases. Keep in mind that the default treatment of a multi member LLC is a partnership. Each partner would receive a K-1 that would flow through to the individual tax returns. Whether or not that type of entity is in your best interest will depend on your overall tax situation. My recommendation is to get with a CPA who can advise you based on a big picture view. Best of luck!
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  • Real Estate Investor · Madison, WI · Member since 2016 · 19 posts · 2 votes
    9y

    @Daniel Hyman Thanks for helping me get in the right direction with this issue. Much appreciated for your input of information!

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