Seperate Corp to Manage Properties - Posted by TJ

import · March 24, 2002, 12:24am

Posted by TJ on April 09, 2002 at 16:56:37:

I have LLCs, not C Corps. Does it help me at all then?

import · March 24, 2002, 12:24am

Posted by TJ on March 24, 2002 at 01:24:49:

Can someone explain the legal advantage of forming a seperate corporation to manage properties already in their own corporations or LLCs? I’ve heard this is the way to go but am not sure why. All responses appreciated.

import · March 25, 2002, 12:54pm

Re: Seperate Corp to Manage Properties - Posted by JHyre in Ohio

Posted by JHyre in Ohio on March 25, 2002 at 13:54:09:

C-corp double taxation can be avoided via two routes:

Bailing excessive income out via loans, salaries, etc.; or
Controlling the amount of income that goes into the C-corp to begin with.

#2 is easiest…you determine how much income you want the C-corp to generate, and pay it that amount (assuming “arm’s length” payments).

John Hyre