S-Corp and LLC? Tax Attorneys in Austin, TX area

[Stephanie Banno]

Hello All!

I was recently advised that the best way to setup a new investor business is create two separate companies. Both a S-Corp and LLC. I was advised that an LLC should ONLY hold property (up to $1M) while the S-corp will pay employees, business expenses, receive rent etc. Benefits from having both is that you can not be double taxed on money with a S-Corp. In addition, when a property is passed from you, to S-Corp to LLC, there is no paper trail associating you with any homes if, for any reason, the LLC is sued, it can not be traced back to you personally.

Can anyone shed some light on why (or why not) you would want to create both a S-Corp and a LLC? In addition, can anyone recommend a good Tax Attorney for advice on this topic in the Austin area for further information?

Appreciate your help in advance.

Thank you!

Stephanie