Question....S-Corp vs. C-Corp - Posted by Brian

Posted by David Alexander on November 22, 2000 at 11:08:29:

My Opinion…

Because with C Corps the corps are no longer a part of you, they are a seperate entity. With S Corps, and LLC’s they are still a part of you, and taxed down to you.

It all depends on your plan as to how you structure yourself. Multiple enitities working together and/or seperate can play a part in the whole process.

David Alexander

Question…S-Corp vs. C-Corp - Posted by Brian

Posted by Brian on November 22, 2000 at 07:48:30:

Hi all…
From what I have read, most of the hard-core investors
out there have set up C-Corps for their flips and L/O’s…
And also set up LLC’s for rentals…

Let me ask two questions??

  1. Why do some many choose to set up C-Corps in lieu of
    an S-Corp…? Isn’t the C-Corp a more difficult set-up
    as far as paperwork…the feds…etc…
    What benefit is their to the C-Corp over the S-Corp??

  2. What is the main reasoning for choosing a LLC for
    rentals? What is the advantage to keeping them in an
    LLC instead of let’s say a C-Corp…
    What is the benefit to splitting rentals and flips, etc.?

Thank You all so much,
without this site, I don’t think I would have the
courage to begin…


Re: Question…S-Corp vs. C-Corp - Posted by Bud Branstetter

Posted by Bud Branstetter on November 24, 2000 at 15:16:26:

C corp are more helpful in deductions for the business. Flips and L/O are current income and as such get taxed at short term gain rates. A L/O or Pactrust deal that is several years long you want to treat as an investment for long term capital gains tax rates. Long term items go into the LLC because the gains can pass directly to your individual tax bracket without the medicare tax. Rents flowing through the c-corp would be charged both corporate tax and individual tax rates when taken out. The mainstay for an LLC is, however, the protection you get from the fact that only a charging order can be entered but not force a sale.