Is S-Corp the best structure?

[Andrew Erickson]

I am setting up a legal entity for my real estate project, and I would appreciate your advice on which type of legal structure would best suit my situation.

Important details

• The property and I are located in San Diego, California.
• The property, currently personally owned, is valued at $900k.
• $200k equity
• I am on the verge of securing a $2.2M loan to refinance the property and construct six ADUs. 
• Total costs (including capital) are projected to be $2.5M.
• The After Repair Value is estimated between $3.2M and $3.5M.
• Expected net profit is $700k to $1M.
• My holding period will be 2-3 years, but could be extended if there are benefits such as tax incentives.

In light of these factors, would establishing an S-Corporation be the best option? Alternatively, are there other business structures that might be more suitable for my situation? Thank you. 

[Ashish Acharya]

Absolutely not! 

Start with SMLLC.