LLC vs S corp

[Patty Streufert]

Hi - we are still reading and learning about investing - leaning towards multi-family properties to hold and rent. Anyway - my question is LLC vs S-corp as a vehicle to shield from personal liability and taxes. We already have an S-corp for my husband's consulting business. Would it be ok to use that since it already exists and has been around for over 10 years. Or should we get an LLC for the real estate investments? Thanks -Patty

[Chris T.]

I am not a CPA or lawyer but my CPA would probably suggest you set up a LLC for your rental business. Separate from your other business. And also not commingle the funds.

A key thing is liability. If a tenant decides to sue, you want to have that protection. If you lump it with your husband's business, that part of the business may be at risk.

Just my humble opinion.