Should I Incorporate or LLC

4 Replies

Hello everyone, this is my first time posting. I currently own 3 rental properties with mortgages and currently working on my 4th. Should I have my properties in either a corporation or LLC? Any insight is appreciated thank you.

Originally posted by @Eli Fazzo :

Hello everyone, this is my first time posting. I currently own 3 rental properties with mortgages and currently working on my 4th. Should I have my properties in either a corporation or LLC? Any insight is appreciated thank you.

Never do corporations for various reasons. 

You don’t get a debt basis, meaning your loss gets limited during tax filing.

Also, there is taxation when you distribute property. 

There are many other threads on this. Let us know if you have questions after reading those. 

 

@Eli Fazzo

C Corps or S Corps will rarely make sense if the majority of the revenue generating assets are appreciating tangible property.

I wouldn't go so far as to say they never make sense.  But...they generally don't make sense -- except in limited fact patterns.

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