Posted by The Baze on April 02, 2000 at 19:21:49:
If your property management company is a sole proprietorship, then you should file the income & expenses associated w/ it on Sch C. I know Bill Bronchik doesn’t like Sch Cs, but I love them, to a point. True, the likelihood of an audit is greater, but if you’re doing what you’re supposed to be doing anyway (documenting all of your business deductions) then there is nothing to fear. Small little mom & pop sole proprietors can do things (i.e. shifting of income to lower income family members) w/ less expense than setting up a full blown C-corp. Like I said though, to a point. Once the income becomes large enough, then creating a corporation is the appropriate course of action.