Tax Structure? and has anyone used Turbotax for Business?

[Mike Geier]

I'm closing my first deal at the end of this month. I'll be doing all transactions from a business account set up under my LLC.

Any recommendation on whether I should set up my LLC tax structure as a sole proprietorship or C-corp?

Also, has anyone used turbotax business?  My situation is pretty simple and the cost of turbotax business is very appealing.

[Chris K.]

@Mike Geier:

If you have a single-member LLC, you can basically tell the IRS to tax you in one of the following three ways: (1) as a sole proprietorship; (2) as an S-Corporation; and (3) as a C-Corporation. Talk to your lawyer and CPA to confirm this, but the general advice is that you should buy-and-hold as a sole proprietor (or a partnership if you have a multi-member LLC) while flip as an S-Corporation.

Here is a good article explaining one of the reasons why many people advise not to elect to have your LLC treated as a S-Corp or C-Corp if you intend to buy-and-hold. If you talk to a good CPA about this article, they may add a few caveats. But it does a decent job explaining one of the issues.

http://www.forbes.com/sites/anthonynitti/2014/01/2...