Should I put my investing business in an LLC, S corp or C corp

2 Replies

My family and I are just starting out in real estate investing and I have been reading a lot of forums and watching webinars. I have read that you would want to put your business in an LLC. But then I also read about S corp and C corp, how do you know which one is best? Also, must it be set up before any investments are made or can it be done at anytime?

@Debbie Camara Before you decide, go and speak with a good CPA. Find someone who has investment properties and interview them. Our CPA saved us 15,000 in taxes for my wife, a Realtor, here in Florida. So he has more than paid for himself. 

@Debbie Camara

Entity selection can be confusing. An LLC is a state recognized entity, not a federally recognized entity, such as a corp.

The two main advantages to placing property in an entity are for asset protection and tax savings. Consult with an attorney for your specific asset protection needs and a CPA for tax saving strategies. The decision will be heavily based on the type of investing that you are planning to do. 

There are tons of great BP posts on this subject, but nothing can compare to having tailor made advice for your needs.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Create Lasting Wealth Through Real Estate

Join the millions of people achieving financial freedom through the power of real estate investing

Start here