PA & NC Houses, Solar Fields, S-Corps, & other shenanigans - biz structures?

[Scott Reynolds]

Hey BP, I am deciding on business structures. I own three properties in NC (where I live and have a W2 job), which I manage with an NC LLC I just started. I also own a SFH and farmland in PA. I'm soon to be leasing the PA farmland to a solar company on a long-term lease (more yearly than my W2 job, and 3% escalator, compounding).

With such an advantageous situation in PA, I want to be able to maximize my potential. Most of the PA income I plan on reinvesting into NC properties, and as such want a tax efficient structure. Plan is to reinvest most of the profits for 2-5 years before I quit my W2, go into real estate full-time, and live off the profits while continuing to invest. I've also considered forming an S-Corp in PA, as I want to have a self-directed retirement account someday, and it would be easy to max out with the revenue from the PA solar farm.

If I had a self-directed account, I would likely do some investing in securities, but most in real estate (likely in NC). I'm also open to holding off on the self-directed account and/S-Corp if it makes sense to do something else, or do it later.

If you were in my situation, how would you handle the business structures? Form a separate PA business? Use a new NC business to do business in PA? LLC? S-Corp? etc.

Here are some other bullet points if you need more info:

- The PA properties are owned free and clear, in my name

- The PA SFH is likely to be a long term rental (renovations currently) and will net around $1,500-$1,700/month if I don't borrow against it

- The NC properties have mortgages, and are held in my name

- I have a lawyer negotiating the solar deal, and have not signed anything yet, but is nearly a done deal

- Unsure if solar proceeds have to go directly to me, or can go to a business I own

- I'm unmarried and investing by myself/no partners

- W2 is between $70-$85k/year

- I don't yet have an accountant, but am going to be hiring one and discussing strategy with them

Thanks so much for your opinions!