Updated over 4 years ago on . Most recent reply
How to structure my real estate businesses
I am looking for some advice on how I should structure my real estate businesses to get the most . Right now I currently own a fourplex in which I Airbnb 3 out of 4 units plus a single family that I just bought in Nov 2020 that is now my residence. The 4th unit in the fourplex has a great long term tenant. I am also a real estate agent in the area so that is my main source of active income. I started an LLC for the Rental property about 6 months ago but technically have not done anything with it (filed taxes or started a business account with its EIN) because I feel like there is a smarter way to structure these different types of income after doing a little more research. Keep in mind I want to buy many more properties in the future and turn them into short term and/or long term rentals. I found that maybe I should start a C-corp for the Airbnb business and lease the property to that c corp using a master lease. I would then take a salary from the c corp in a w-2. When I go to get a loan they will see my w-2 income and my 1099 income from my RE commissions with Remax. Should I structure all my personal income as W-2 income? How would I structure it to best suit my future self that wants to continue to buy RE and save the most money in taxes. Does anybody else have a similar situation being an agent and running Airbnbs? If so I would love to hear your stories. Thanks!