LLC Tax Election?

3 Replies

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.   

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.     

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.

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.

Medium hta logoSteven Hamilton II EA, Hamilton Tax and Accounting | [email protected] | (224) 381‑2660 | http://www.HamiltonTax.Net