Posted by ken in sc on February 13, 2002 at 07:26:23:
If you only have rental properties, rther than buying to immediately sell, then you don’t need a corporation. In fact it would be a detriment in that you do not want to build a large net worth in a corp. It would be hard later in life to get that money out without double taxation.
From all that I have learned - I am no lawyer or CPA - the basic premise is rentals (investments) are held personally or in an LLC, and when you buy to sell (a business, not and investment), then you want a corp. So when you get into the business of flipping, you would incorporate then and buy those properties in the corp name. This way the IRS can tell what properties are investments and thus can be depreciated and exchanged, and what properties are “dealer” and thus cannot.