LLC Tax Election?

Question

currently weighing my options on how i want my LLC to be taxed.

Business activities will be receiving royalty income from my buy n hold properties..

s-corp or partnership????? is the million dollar questions

and i want to pay as little as possible on taxes.

please help.

Bill Walston · Answer

I'm not sure how you're getting "royalty" income from your own buy and holds, but I digress.  As a general rule, unless the profit is substantial or the corporate rates are lower than personal rates there is no tax benefit derived from having passive income taxed in a corporate entity.    Is your LLC a single or multi-member?

As @ChrisS. said, it pays to hire a good tax pro.

Steven Hamilton II · Answer

How has it been treated since you opened it?  What are you doing with it? What is its purpose? What is your tax bracket? What will it become? etc. I Could ask TONS of questions but until I sit down with someone and discuss what they need I can't make a recommendation.My advice is to find someone to sit down and talk with and they do not need to be local, they just need to be knowledge able.

Chris Soignier · Answer

There are no simple answers here, optimizing tax strategy depends on understanding your complete personal financial situation as well as your business interests.   It really does pay to hire a good CPA.