Forming a 2 Person LLC New Jersey

[Alexander Flores]

So I currently own one rental property I own and manage through an LLC where I am the sole proprietor. My question is if my sister and I form a new LLC where we are co owners and each own 50% of the LLC, how would we be taxed in New Jersey or federally.

She has access to the capital required to start investing into more real estate and I am the one who has done it before and knows more of the rehabbing side of the business. I have tried looking up this through the internet but could not find anything that was very clear in the way it described the situation, any insight would be helpful thanks!!

[Karolis Matulis]

You have a choice of a partnership or an s-corp in multi-member LLC scenarios. The choice depends on the type of activity the LLC will be doing. Pure rental property LLCs are best treated as partnerships.