Best Business Structure for Real Estate Investing

2 Replies

Sorry, I know there's a lot of material out there on this topic but I still can't seem to make a decision on what type of business structure makes the most sense for me.

I'm just starting out, but my plan is to start out with wholesaling and "fix and flips", and eventually get into buying rental properties. Everything that I've seen says that an LLC is best for long term investments (rentals), and an S Corp is best for short term investments (fix/flip). Does this mean that I need to separate my business into two businesses?

Thanks,

Daniel

Ive been looking to do the same thing. IF anyone could respond and give some insight that would be great. 

What I have come up with so far is that I will have an LLC holding company. I will have an LLC that just does rental properties, and an S-Corp that deals with wholesaling. The LLC holding company would be taxed as an S-Corp. I am not sure if LLC can own S-Corps. I would say that you do have to operate your business a little.

Why not just not worry about it right now and start your "business" just as yourself? Trying to structure entities and all that before you've technically even started your "business" is really putting the cart before the horse. Start doing it just under your name (you can still write off all the expenses, so no less tax breaks doing it personally rather than under an entity), see if it takes off, and if it does, deal with entity structuring if/when it comes.

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