Posted by John (TN) on October 10, 2003 at 11:49:02:
Really, it is dependant upon your specific situation and goals. It is worthy of your time to study, learn and research the answer. Assistance from a competent professional is generally advisable.
Check the archives - I believe you’ll find lots of food for thought there.
In VERY general terms, the rule is a LLC for holding long-term keeper property, notes and other devices that produce passive income.
Dealer property (flips, rehabs, and the classic Lonnie deals) fare best in a corporation since the character of the income is changed when you pull money out. You don’t have to take it all out as salary - some can come out as dividends on which you do not pay SE tax.
There are other factors - perhaps the experts will chime in.
Best wishes for your success,
John
