LLC, S-Corp, or LP Holding Company?
I'm just ending college in May, and my friend and I are looking to buy our first investment house in a partnership within the next year. Before we do that, I want to be protected from as much liability as possible and reap any tax benefits from having a corporation. I thought of two ways to structure our partnership; creating either an LLC or S-Corp with a 50-50 share of interest between us, or creating an LP with both of us as equal limited partners and either an LLC or S-Corp as the general partner.
Now from anyone who has experience in holding their RE (in this case probably single family) in a corporate entity, what is the most practical method of setting up this structure in order to get both tax benefits (preferably pass-through), protection from liability, and as little trouble as possible if it ever had to dissolve?
And are there different methods for different kinds of RE?