RALF - Business Structures for RE holding and managing companies

Rental Property Investor · Seattle, WA · Member since 2017 · 44 posts · 17 votes

Context: My three business partners and I want to run a residential assisted living facility business. We want to acquire a property, remodel it and open a RALF business in South Florida. We want company A to own the real estate and company B to run the RALF business. Company B pays rent to Company A.

What business structure to choose for each company? We're thinking to choose LLC for both. Any benefits to choosing S-corp for either of those? Comments appreciated.

If you're in this line of business in Florida, I would like to connect with you.

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Ashish AcharyaBusiness Member
CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
4y
Depending on how you run RALF, S-Corp for the RALF might be beneficial.
If your business specified business for QBI, you might need to not separate your LLC for QBI purposes. You need to talk to your tax professional. You have more things going on then you realize.
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Bruce D. Kowal
Metro NY + New Bedford · Member since 2022 · 294 posts · 216 votes
4y
Three partners will own equal shares in each entity? Are the all the Partners US residents? No Foreign Nationals? That affects S Corp status. If this is your first venture into the RALF business, you might want to join a trade association, and see what others have done. Ask questions of the Staff, find articles already published on this. Maybe there is a local Florida trade association. Pick brains freely for this.
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