question for my buisiness

[Harry Kamperides]

Hi guys, I have a question, I'm just starting should i start a corporation or an LLC for my investing

[Jon Holdman]

Neither.  Forming entities is a secondary task for someone starting out.  Learning values and making offers is your first order of the day.

To actually answer your question...

If you're fix and flipping creating an s-corp might help with taxes.  Income from fix and flipping is ordinary income and is subject to self employment tax.  If you're making quite a bit of money from this you may be able to do it inside a s-corp and distribute part of the profits as distributions from the s-corp.  You would still have to pay yourself a "reasonable salary" and that would still be subject to SET.  The part distributed as distributions is not.  Same for a lot of other RE jobs like wholesaling, property management, developing, etc.

If you're holding rentals then owning them by an LLC might give you some asset protection. No effect on taxes at all, unless you elect special tax treatment. Holding in an LLC makes financing more difficult. If you want 30 year fixed loans the ONLY way to get those is to buy and mortgage in your own name.