Best way to setup a company?

[Michael McIntosh]

Hi all, I will hopefully be purchasing my first rental property next week in Pontiac, MI and I’m looking for suggestions on how, or if, I should create a company. I’ve read a lot on real estate investing but I’m still unclear on what the advantages are between an LLC, corporation, etc. Thank you in advance for your help!

[Brian Schmelzlen]

Michael, it depends upon a lot of factors.

For people involved with REI, it depends upon what you want to do with the business as there are different tax rules based on type of entity.

For holding rentals, I generally recommend an LLC if you are setting up an entity at all.

For flipping and development, I generally recommend an S corp.

For wholesaling, my recommendation would depend more upon your specific business.