LLC taxed as an S-Corp??

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Kenneth Garrett · Answer

@Sonny Pacheco

Check out Mark Kohler on youtube he is an attorney and CPA covers this topic extensively.  @Logan Allec has it correct.  You can go to kkoslawyers.com and/or Mark holds a podcast (Refresh Your Wealth) each week with his business partner who specializes in SDRF.

Good Luck.

Logan Allec · Answer

I second Mark Kohler.  He puts out a lot of good stuff along with his partner Mat Sorensen.

Logan Allec · Answer

@Sonny Pacheco, as a CPA, I am not qualified to speak to matters of asset protection and insurance.  I know two things: tax and accounting.  Your question regarding setting up an LLC is better directed toward an attorney, and your question regarding insurance is better directed to an insurance agent -- with hopefully both of them working in tandem with your CPA, who can advise on the tax and accounting implications.

Logan Allec · Answer

@Sonny Pacheco"Should i start up a investment property business LLC and tax it as an S-corp?"

No.  There are no tax benefits to doing this in your case.  From a tax perspective, the S corp could help you save on self-employment taxes.  However, the rental income from your multiplexes is not subject to self-employment tax anyway.  There are other benefits to existing in corporate form, but it will not help you with taxes in this situation.

"I need to do something because if i stay as a sole proprietorship then it will probably kick me into the next tax bracket."

I'm not sure, but I'm thinking that you may have some concepts jumbled here.  Probably best to speak to your new CPA about this question.  Also, when he brought up the notion of starting a business, I believe he had in mind an ordinary trade or business like selling widgets or providing services.

LLC taxed as an S-Corp??

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