s corp or LLC for business

[Robert D.]

Hey all,

i ve gotten a boatload of great information here on this board regarding real estate. Now I dont know where to turn to short of visiting my CPA. which is going to be costly. what im looking for is folks with real life stories/examples/advice.

ok i am a general contractor. i wish to start an s-corporation or LLC. I have no employees, officially at this moment anyhow. Can anyone help, which of the 2 am i better off with? I am a small peanuts business at this time but who knows it may take off one day.

here is what i do know. s-corp is a pass thru entity. taxes are paid on 4-15 every year along with my taxes. LLC same except not so formal/strict. seems like llc is less redtape. HELP

if you had/have a corrp now id like to know if you have any regrets with your form of corp. thanks in advance

[Steve L.]

Originally posted by Cain Kiser:

In an LLC you will almost always pay less taxes.

You get the benefit of a partnership with the liability protection of a corporation.

LLC has additional taxes based on revenue (at least in California). You really should talk to a lawyer and accountant. Everyone's needs are unique.

Here is my setup, LLC holds rental properties (long-term), S-Corp does all operational business activities and holds title to flips. If you want to get fancy, you can setup a Land Trust for each property and make the beneficiary your LLC.

http://www.pahl-gosselin.com/the-california-llc-fee.aspx

$0 for LLCs with annual gross revenues of less then $250,000;

$900 for LLCs with annual gross revenues of at least $250,000 but less than $500,000;

$2,500 for LLCs with annual gross revenues of at least $500,000 but less than $1,000,000;

$6,000 for LLCs with annual gross revenues of at least $1,000,000 but less than $5,000,000;

$11,790 for LLCs with annual gross revenues of $5,000,000 or more.