Re: LLC CLASSIFICATION - URGENT - Posted by Marc Donovan
Posted by Marc Donovan on April 04, 2006 at 20:41:46:
If the LLC has one member, it is a “single member LLC” regardless of type of entity. A partnership is owned by more than one entity by definition.
Dont classify as a corp when holding - double taxation on cash out.
I prefer partnership returns for the flexibility. Try to go with that even if you have to create another entity to be the partner. Its more paperwork, but you can move profits and losses around very easily which can provide large tax savings if you have a good CPA, or if you learn the laws and tricks yourself.
You should also setup a C corp to manage the property. This can provide big tax savings for things like healthcare plans, retirement plans, 401K, and the like.