"S" vs llc
I posted this on another BiggerPockets Forum and did not receive any replies...so I will try here:
Starting out with a buy and hold real estate strategy...mostly single family or small 2-4 unit multi...currently my (untested) model is looking for $200 a door monthly margin.
I was all set to establish 2 llc(s) one for holding the property and one for the property management. It seems as though if not now soon the tax regulations for llc will require payment of self-employment tax. My wife and I are both employed elsewhere so we are not intending to pay ourselves from real estate investment, only looking to build a profitable portfolio.
I think I can avoid self-employment tax by setting up an "S" corporation for the entity that "holds" property. There are just two of us and we can meet all criteria for "S".
Although I feel like an "S" Corp is the best way nearly no one speaks about an "S", most all discussions support an llc -- what am I missing?
I understand the "consult a tax adviser" stance and that is good advice which I will take; however, at this point I am trying to understand why the overwhelming majority of free advice is llc...other than you get what you pay for
Thank you for your thoughts and perspective -- b