Entity for WA newbie with a high-income day job - Posted by JoeWA

Posted by Dan(MD) on October 14, 2003 at 21:44:07:

I went through this very question about 6 months ago and I went to a see an accountant and left more confused than when I got there…then I went to a local real estate meeting where John Hyre was going to make a presentation and I asked him…so here is what I did (remember to take this advice with some skepticism since I’m not a lawyer or anything)

I ended up forming an LLC and I will file as an S-corp at tax time. I did this for two main reasons

  1. LLC’s are easy
  2. The real tax advantage to an S-corp is the social security tax savings as a self employed tax payer but since you have a regular job where you are paying SS tax you wont get that tax break. You max out your SS taxes at $88K (or so) income. Any income earned above that is not SS taxable (ie your lonnie deal income) so an S-corp may not be your solution.

Hope that clears it up a bit…


Entity for WA newbie with a high-income day job - Posted by JoeWA

Posted by JoeWA on October 13, 2003 at 15:40:49:


  1. I have a day job with income >$95K
  2. I want to do Lonnie Deals in the state of WA

QUESTION: LLC vs. LLC filing as an S-Corp?

Is there an advantage of setting up the LLC to file as an S-Corp?

Thanks for the wisdom…


P.S. Apologies for “yet another entity question.” If it’s worth anything, I did my due diligence in reviewing the archives before posting. You should have seen how confused I was before reading them! :slight_smile:

Re: Entity for WA newbie… - Posted by Lyal

Posted by Lyal on October 14, 2003 at 06:39:29:

We can answer general questions here but this is pretty specific. Check with a local attorney / CPA that understands the ramifications…better yet, for advice from someone who specializes in this stuff, drop John Hyre an email and set up an appointment for a consultation. Well worth the investment (never used him in that capacity myself but heard him speak and he knows this stuff cold).
All the best, Lyal