LLC vs. S Corporation vs. Neither

[Greg Stepich]

I know this has been touched on in the past, but I'm still unclear on what my best options are regarding incorporating. I currently reside in a house with an apartment attached that is being rented out, and I own another single family residence I rent. I've been preparing myself and I'm now looking to build on my rental portfolio with the purchase of a two-flat, then more to follow. I spoke with a real estate attorney and asked his opinion, and he recommended an S corporation. Everything I've been reading leans towards an LLC because there's more flexibility, etc. if I even need liability protection outside of good liability insurance. My accountant hasn't gotten back with me, and I will wait to hear from him before I make a decision, but I was hoping to hear some recommendations. My plan right now is to purchase small multi-units, and holding them. Any advise would be much appreciated.

[Natalie Kolodij]

General rule of thumb- Rentals in an LLC almost never in a corp.

Definitely sit down with your CPA to discuss your specifics- but above is a fairly common guideline