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re: TOS: Being a landlord
Posted on 6/13/15 at 11:39 am to deeprig9
Posted on 6/13/15 at 11:39 am to deeprig9
LLC that is a single member can elect to be a
1) Disregarded Entity
2) A Corporation
3) An S Corporation
If electing a Corp or S-Corp then a separate return has to be filed. If Disregarded Entity, LLC is only for legal protection under the law and segregation of assets. If an S-Corp, you are correct in that some sort of "Salary" would have to be paid to the manager of the S-Corp and thus Payroll taxes would come into play. That's why we suggest NOT electing Corp Status.
Multi Member LLC's are by statute Partnerships unless they also elect to be tax as a corporation or s-corp. Multi Member LLC's cannot be Disregarded Entities.
1) Disregarded Entity
2) A Corporation
3) An S Corporation
If electing a Corp or S-Corp then a separate return has to be filed. If Disregarded Entity, LLC is only for legal protection under the law and segregation of assets. If an S-Corp, you are correct in that some sort of "Salary" would have to be paid to the manager of the S-Corp and thus Payroll taxes would come into play. That's why we suggest NOT electing Corp Status.
Multi Member LLC's are by statute Partnerships unless they also elect to be tax as a corporation or s-corp. Multi Member LLC's cannot be Disregarded Entities.
1
Posted on 6/13/15 at 11:28 pm to Dawgman77
Dawg man...good point. We're not involved with a lot so our LLC is a pass through as far as taxes. Profits or losses get passed through to our personal taxes so our marginal rates apply. I can't remember the reasoning but establishing a corp didn't make any sense based on what we are doing.
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