Is an LLC or a S-Corp the right entity for a rehabbing business?

[Adam Jaspon]

I'm currently a landlord and utilize an LLC for that side of my investing, however I'm preparing to start a rehabbing business and I'm unsure whether an LLC or an S-corp will be more beneficial.Any advice is much appreciated.

Thank you.

Adam

[Basit Siddiqi]

@Adam Jaspon

Bob is correct in the sense that there are potential self-employment tax(payroll) savings with an S-corp.

The savings comes from an example below
All of the LLC's net income would be subject to self-employment tax
Only the portion of the S-corp that is designated as salary would be subject to self-employment tax. The difference between net income  and salary is safe from self-employment tax.

One other item to be wary about is
MA LLC's do not have a minimum tax
MA S Corps have a tax on net worth, along with a $456 minimum tax.

Is the potential payroll tax savings going to be more than the minimum tax, fees paid to your accountant for income tax return filings, fees paid to your accountant for payroll tax filings etc.

These are just some things to keep in mind.