Andersen Law firm/ C-Corp

2 Replies

Anyone familiar with using these structures for airbnb income?   Seems like a lot of layers, but for me the most important thing is:

1) Protecting my new assets from risky assets I currently have

2) Anonymity (hence NV or WY LLC)

3) Most efficient tax structure as I plan to buy properties for AirBNB

I spoke with the Andersen  Law firm -- does anyone have any experience using them?

* was told to use the C-Corp on top because it's Active income and thus the C-Corp would be the management company that would accept payments from guests.

*C-Corp would avoid double taxation for small business since say business earnings are $200K before deductions and $50 in deductions, I could pay myself the remaining $150K and eliminate any tax from the C-Corp.  Wouldnt this just make it so my income gets taxed at the higher personal income tax bracket though?  

* was told this structure would allow anonymity

* that it would prevent the due-on-sale clause since the assets are in land trusts and not sold to the Wyoming LLC

Any advice is much appreciated. thanks!

This structure can work for what you say you want, but in general I think creating so much complexity ultimately creates more problems then it solves. This is especially true for most business owners who tend to operate pragmatically rather than following all the formalities required to have all those entities be respected.

And you are correct, if you pay yourself all of the profits out of the C Corp it will avoid double taxation but you will be taxed at your ordinary income rate not the new 21% corporate rate.

@Noah M. - I second @Brian Schmelzlen . Too heavy for my taste. This is not to argue with lawyers, as I'm sure there are legitimate benefits they would point out. It's a question of whether your legal risks justify the cost and the hassle of this setup. And maybe they do, not my call.

There are several older threads on this forum discussing Anderson Advisors.

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