Purchasing Property Under Corporation

[Shakir Evans]

I am looking to purchase a multi family unit and I want to know if it is better to purchase through my business or to personally purchase. Of course when you purchase under a business such as a LLC you remove yourself as being liable but I want to know what the downfalls of purchasing under a LLC/Corporation are.

Also, Is there a difference in purchasing a multi family property under a S Corp versus a LLC? Which would be better to use for real estate?

Thanks!

[Ed Matson]

LLC's are entities that can elect to be taxed as C Corps, S Corps, or LLC's. Being taxed as an LLC is like being taxed as a partnership, and it is the default election. LLC taxation is most appropriate for buy and hold rental real estate. There is no requirement to pay salaries or payroll tax for passive real estate investing. BTW, I am only an investor, not a CPA or attorney. It is often easier to finance a property if purchased as an individual.