LLC? S-Corp? Land Trust?

Question

How do you your rentals structured ? Do you own them in your personal name? In an LLC, and S-Corp, C-Corp? A land trust that is owned by an S-Corp? Curious to hear everyones setup!

Randy Rodenhouse · Answer

Any long-term assets over one year hold time is best in a LLC. You can have the LLC taxed as an S Corp. when you have enough income to make the change and reduce your self employment tax.  If you setup your LLC to be taxes as an S-corporation, you can classify some of your income as salary and some as a distribution.  You will still be liable for the self-employment taxes on the salary portion of your income but you'll just pay ordinary income tax on the distribution portion.

Usually the LLC will be the beneficiary of the trust that you deeded your property into but that is a little more complicated but does afford you anonymity.

Sarah Kensinger · Answer

Never personal unless you want to be high risk for losing everything in a possible lawsuit. We have a S-Corp LLC for our business. Then depending on the state we purchase property in, we would have a land trust or an LLC under a WY holding LLC.

Chris Seveney · Answer

Personal with an insurance policy if they are single families.