Legal Structure for IRS

[Anisha Spand]

My husband and I just filed our Articles of Organization with the state of SC for our LLC and now I can apply for the EIN. I don't know whether to do LLC, partnership or corporation. The business is for wholesaling and purchasing properties (homes and multifamily) for ourselves. I want the best option to avoid high taxes and getting doubled taxed.

[Natalie Kolodij]

You want two different entities 

Never hold rentals in an S corp- keep these in an LLC that you and your husband file as a disregarded entity on your schedule E.

For regular income- like from wholesaling. You want S corporation treatment. 

For now- Just set up an LLC. Start wholesaling in it. File it to be taxed as an S corp come tax time. You don't need to actually set up an S corporation, just choose to have your LLC taxed in that manor.

Once you buy a buy and hold set up a new llc to keep that in.