Updated about 7 years ago on . Most recent reply
LLC vs. S-Corp? New flipper with regular w-2
Hi All.
We have decided to explore an LLC for liability reasons for some house flipping. We are trying to see if there are tax benefits and liability benefits to an LLC vs. and S Corp. We have steady income (W2), this is a side hobby. Lamens terms would be great :)
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- Tax Strategist| National Tax Educator| Accepting New Clients
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Hi Steve
Congrats on getting into REI.
Start with just an LLC. An S corp CAN save you some money on SE tax but it also costs money to maintain a corp, run payroll ect. '
I normally tell people once you're looking at income of around $70k for the year to talk to your tax person about turning your LLC into an S corp.
FYI: An S corp is most commonly an election (form) you file with the IRS that changes how your LLC is taxed. So LLC is step 1.
Hope this helps!
