1120 C-Corp or 1120s S-Corp- Which to choose

[Daniel S.]

I am going to be flipping about 3-4 houses annually and looking to acquire 1 rental property annually as well. I am trying to determine if forming an 1120 C-Corp or 1120s S-Corp will provide the best benefits? I am also looking to obtain bank financing on the rental properties which will be held under the business name and not under my name personally if that influences any opinions.

Thanks for the help!

[Linda Weygant]

Entity formation is soooo much more than just what you're doing in the business.  Things that a professional will need to consider before offering advice:

Your other sources of income (personally and within your family/tax entity structure)

Your tax goals

Your asset liability goals

Your retirement savings goals

Your tolerance/ability for recordkeeping and rules following

Who you're doing business with, how they are structured and what type of business you are doing with others (Partners?  Investors?  Lenders?)

Once a professional is aware of all of these issues, they can then outline an entity structure and overall strategy for you.

Taxes, asset protection and business management are not cookie cutter, one size fits all prospects.