Choose Your Entity

Default LLC has no specific tax treatment and will provide liability protection.  Frequently used to hold rental properties and is created in the same state as the property itself.  There is no limit on the number of properties that may be held in one LLC, although all of the properties in one LLC would be involved in any legal action against the LLC. Is also used as the initial form of a cash machine until revenues warrant an “S” tax election.

“S” LLC takes advantage of the rules of sub-Chapter “S” to reduce the salary tax paid on earned income and provide better tax deduction treatments for the owner(s).  Frequently known as a “Cash Machine”.  Like all LLCs, this entity provides liability protection for the owners.

“C” LLC takes full advantage of all of the Chapter “C” rules to maximize benefits and lower tax rates.  When used as a “Mother Ship”, this entity provides excellent asset and liability protection as well as cash management for the “excess” income being generated by cash machines.  When used as a General Partner, this entity shields owners from liability and reduces taxes.

LP is used in some states to reduce the setup fees charged. In most cases, a Limited Partnership is used in conjunction with a “C” to manage the tax consequences of ‘re-habbing’, flipping or pre-construction investments that do not qualify for the long term capital gains treatment.

“S” Corp takes advantage of the rules of sub-Chapter “S” to reduce the salary tax paid on earned income and provide better tax deduction treatments for the owner(s).  Frequently known as a “Cash Machine”.  Like all Corporations, this entity provides liability protection for the owners.

“C” Corp takes full advantage of all of the Chapter “C” rules to maximize benefits and lower tax rates. When used as a “Mother Ship”, this entity provides excellent asset and liability protection as well as cash management for the “excess” income being generated by cash machines.  When used as a General Partner, this entity shields owners from liability and reduces taxes.

We’ll guide you through the selection process and send you a personalized written report specific to your situation so that you understand the “whys” and “whens” for each step you will be taking.

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