Corporate Entity Question - Posted by Scott

Posted by Bill Jacobsen on April 09, 2007 at 20:54:27:

I would think that a PC taxed as an S-corp would work for the consulting business. I would use LLC’s for any real estate.


Corporate Entity Question - Posted by Scott

Posted by Scott on April 08, 2007 at 08:23:53:

I do telecom consulting work on the side which will fund my REI. I understand that in general for RE, S-Corp is best for flipping and LLC is best for rentals.

Should the consulting company be kept separate from the REI company(s), and which entity would be best for it.

I believe it should be separate, but I second quessed myself because the income from it will fund the REI. But again, which entity is best for the consulting firm.


Re: Corporate Entity Question - Posted by Rich-CA

Posted by Rich-CA on May 15, 2007 at 23:09:35:

The comments by John also apply to LLCs. And consult a CPA on allowable expenses. “All expenses paid” is not true except if there is no “vacation” component.

For BIG earnings, use “C” - Posted by John Merchant

Posted by John Merchant on April 20, 2007 at 11:05:50:

I’ll predict you may eventually want to be using a C Corp because it allows you lots of deductions, such as your Board Meetings in HI or Europe, all expenses paid by Corp.

Your C Corp might just have so many big “expenses”, all deductable, that it’s kind of weak on taxable distributions, salaries, etc.

Also of course the right to defer big earnings and set your own tax year.

Jimmy Napier put out a great book some years back on his use of C Corp and it’s just full of creative ideas on the subject.

Re: Corporate Entity Question - Posted by DJ-nyc

Posted by DJ-nyc on April 10, 2007 at 20:40:59:


I have a consulting company since 1999 in an S-corp. It has flow through capabilities as does the LLC from business to personal income. I choose to keep my consulting firm separate from the LLC’s for my real estate; but for flow-through purposes I could still use the S-corp, but choose not to.

The LLC’s work fine for my REI buy and hold. I have used the S-corp for some creative stuff (flips)I had to do.