I know this has been touched on in the past, but I'm still unclear on what my best options are regarding incorporating. I currently reside in a house with an apartment attached that is being rented out, and I own another single family residence I rent. I've been preparing myself and I'm now looking to build on my rental portfolio with the purchase of a two-flat, then more to follow. I spoke with a real estate attorney and asked his opinion, and he recommended an S corporation. Everything I've been reading leans towards an LLC because there's more flexibility, etc. if I even need liability protection outside of good liability insurance. My accountant hasn't gotten back with me, and I will wait to hear from him before I make a decision, but I was hoping to hear some recommendations. My plan right now is to purchase small multi-units, and holding them. Any advise would be much appreciated.
Plenty of the right insurance coverage is your best and financially easiest route to take.
The jury is out on the advantages of a LLC or S corp. About 50% of investors use them.
The biggest issue is that although many recommend the perceived protection of a LLC none have ever posted first hand experience of ever having needed the protection.
The major disadvantage may be gaining financing.
Thank you for your input Thomas, that seems to be a common angle. I appreciate your feedback.
General rule of thumb- Rentals in an LLC almost never in a corp.
Definitely sit down with your CPA to discuss your specifics- but above is a fairly common guideline
Thank you Natalie.
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