All Forum Posts by: Zachary Bohn

The big issue  with a 1031 is that there are time requirements for you to find and close on a property after selling the original so they probably just want more control over the closing date

Sort of. S-corps have a list of eligible shareholders and can be a SMLLC if owned by a US citizen or permanent resident. I don’t know why you would want to do that though. If you are going to have an S-Corp then create an S-Corp. Why are you wanting to do that?

Do not use an LLC if you will be flipping or wholesaling, an S-Corp would be better but if you will be doing buy and hold an LLC would be best.

@Mary Jay I'm not sure if turbo tax has a 1065 form setup. Since it is still an LLC you do still have the legal protection as long as you follow the rules for an LLC. Some partnerships don't have legal protection but that is if you don't setup an LLC or any other type of legal formation.

@Russell Gronsky is right. If you are a multi-member LLC then by default the IRS views you as a partnership and you are required to file a 1065 with each members profit from the business passing through to their personal return.

If you are planning on a buy and hold strategy I wouldn't suggest an S-corp for your business, a partnership will be fine. If you are flipping properties an S-corp is probably better. You will be required to take a reasonable salary for the services provided to the business. For a person who is maybe a small owner and doesn't provide any services to the business they are not required to take a salary.