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Old 04-16-2008, 11:16 PM
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Dilemma

Hi there,
Can you tell me please which option is better for a real estate investment for income: the LLC or the corporation? i want to buy a "rooming house", but I don't want to pay double tax on the income that is going to bring me.
Thank you.



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Old 04-18-2008, 09:44 AM
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Generally speaking, I along with almost all the CPA's and Tax Experts would strongly recommend the LLC as the better choice of entity whenever a Real Estate Activity is concerned.

Clearly, you will avoid the double tax that is common with the C Corporation. In the case of the the LLC, you would choose it as a passive activity, so that all the pass thru income would not be subject to Self-Employment taxes.

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