All Forum Posts by: Joshua Saunders
Joshua Saunders has started 1 posts and replied 3 times.
Post: LLC Setup for STR Business with Stay-at-home-spouse
- Posts 3
- Votes 1
Quote from @Katie Ripp:
You will still be able to benefit from the losses whether its set up as a MMLLC or SMLLC since you are married.
Main thing to keep in mind from the tax side of things is that MMLLC may have a Form 1065 filing requirement each year and increase your tax prep fees. SMLLC is disregarded and does not have a separate filing requirement (gets reported straight on the Form 1040).
I can't speak to the implications of a potential divorce, I would consult an attorney.
Thanks for the info!
Post: LLC Setup for STR Business with Stay-at-home-spouse
- Posts 3
- Votes 1
Quote from @Sean O'Keefe:
If your wife is a stay-at-home mom and is involve with managing the rentals you may want to explore Real Estate Professional Status as an alternative tax strategy or along side your STR tax strategy.
That's the longer term plan once the last kid goes to school. Right now she'd struggle to meet the 750 hour requirement for REPS.
Post: LLC Setup for STR Business with Stay-at-home-spouse
- Posts 3
- Votes 1
Hello all,
I'm needing some advice on LLC Setup (or not) for a STR business. Here is my situation:
- I'm a W2 employee that earns north of $500k a year
- My wife is a stay-at-home-spouse
- I'm looking to buy ~ $1,000,000 in STR Real Estate by the end of the year (as an investment and to offset my tax bill)
I'm fairly well versed in the rules surrounding using STR to offset active income. My wife will materially participate in the business and I'll provide the financial backing.
I've talked to a couple local CPAs and done a fair bit of internet searching on legal entity setup for my situation, but haven't been able to get a straight answer. I *think* I'd like to set up an LLC to house the STRs, but I'm struggling on the implications of single-member vs multi-member. In my mind, a multi-member LLC where my wife and I are 50/50 partners make sense, but I don't know if that will cause problems at tax time with counting losses from the LLC against my active income. If I were to create a single-member llc and give my wife 100% control, that seems like I would be at risk of losing everything in case of divorce (god forbid). Any advice is appreciated.