Can’t decide between LLC or S-Corp

[Steve Romano]

For flippers in here do you buy using an LLC or an S-Corp? Which is better for tax purposes? I’ve heard you should do flips under an S-Corp and buy and holds under an LLC. Just wanted to get some opinions and why you chose what you chose. I live right outside Philadelphia pennsylvania in a suburb town so if there is also anyone in here that is from the Philadelphia or surrounding area that could point me in the right direction of a good attorney that’s my only missing piece of the puzzle. I have a CPA who also is an investor, I have a contractor, and a real estate agent. Thanks in advance

[Linda Weygant]

There is no answer that is correct. The reason why different people do it different ways is because their situations are different. An LLC may be the perfect route for one person while an S-Corp may be perfect for another.

While on the surface, both are doing the same type of business, the facts and circumstances regarding their financial and tax goals, their other sources of income, their tolerance for regulation, their family status and their retirement goals may be vastly different, which would affect the type of entity that works best for them.

Taxes are not a cookie cutter, one-size-fits-all topic.