Rental LLC election Partnership or S-Corp
I have a LLC that is owned by my wife and I. Ever since it was created, we have elected it to be treated as partnership and pay self employment tax on income (if there is income in a given year). My current accountant prepares K-1 for my wife and me and then it goes to my 1040. I was recently consulting with a new CPA, and he suggested that I should change the LLC election by filing with IRS and have it treated as S-Corp. In his opinion, my wife can draw salary and pay tax on it as a general partner (depending on how much we decide) and then rest will be distributed to both of us (don't know in which term) and will count towards our ordinary income, saving 15% in FICA/SS tax. I know there are some very competent accountants here and I would like to know their opinion on this matter. Should I change the election of my LLC from partnership to S-Corp? or leave it alone? what is good for long term where I definitely will have profit every year on my rental even after claiming depreciation.