All Forum Posts by: Alex S.

Thank you all (David, Damian, Robert, Jenifer, Tom, William)

You have all pointed out very helpful strategies and information. For the long term and passive approach it does seem like the LLC will be a good choice for me as a first timer.

Hi Folks,

I am looking to purchase my first investment property (either a SF home or less than 5 MF units) and plan to hold it in an LLC, with myself the only member and the member-manager. A couple questions about the legal structure:

1. Would it make the most sense (tax, legal, etc) in this scenario to hold the property in an LLC or an LLC classified as an S Corporation? I would segregate assets/keep funds separate in order to limit liability to the amount of investment in the LLC. But where I am also confused is on classifying this LLC setup.

Would I want to avoid the LLC being classified as "single member" or "disregarded as separate" as this would remove the veil between personal and business funds?

Or if the LLC is elected to be taxed as an S Corp, does being "single member" or not no longer apply?

2. Is there a major disadvantage in purchasing a property and using a sole-proprietorship for the first six months or so, then creating the LLC and moving the property over? For example, if the property is deeded to the LLC after the LLC is formed, would the property then be considered as separate from the owner?

Thank you very much.

Alex