Hey all, I wanted to run by a question to the seasoned vets here at Bigger Pockets. I am in the process of purchasing a couple of properties in southern New York for rental income. There will be no mortgage on either, and they are both cash deals. Each one will be in their own entity. Normally, when I buy them in other states, like CT or NJ, I just put them in a LLC, which in turn, is owned by my main LLC. However, NY has the dumb rule of making each LLC publish themselves as soon as filing, which could be an additional 500.00 per LLC. Would it be better to just form it into a Inc instead? Am I losing any protections when switching from an LLC to an Inc?
Calvin T. You'll want an LLC. An In, (S Corp) has tax advantages for different types of businesses, I believe. And I think it is more expensive to set up. An LLC is still a corporation and protects you as well as an S Corp.
INC may not be the best at this time. It is expensive to set up and there are lots of other things you have to do as well, such as have meetings and log minutes, board of directors, etc.
Yep, that's what I figured. I filed for a NY LLC. Just was trying to get around the publishing requirement. It's a bit of a pain. Appreciate for the insight. :)
I'd just like to add that if one has an out-of-state LLC and wish to foreign file in NY, one still must publish. Is there any other state which makes small business owners go through this 19th century nonsense?