Move rental properties into a corp entity (LLC/S-Corp)?

[Uri E.]

Finding confusing and conflicting opinions on the web when it comes to "should I move my rental properties into an LLC".

Have an advice?

[John Duston]

Hi Uri,

Easy part first, NO to S-Corp. It can create basis issues down the road.

The LLC is primary for legal protection as it will not save you money on taxes. It will actually cost you an additional $800 a year as you are a CA resident. (Plus extra tax prep fees)

Whether or not you put your property into an LLC depends on your risk tolerance, the equity in it, and insurance plan.