C Corporation for Rental property

[Rod Lloyd]

I have been investing in Rental property for over 25 years and have been interested in forming a corporation to limit my liability, but my wife has always been negative on the cost of creating a corporation and a fear of the unknown.

I have recently been reading "Rich Dad Poor Dad" and "Quadrants". This is a must read for all investors or want-to-be investors. It strongly recomends creating a C corporation.

I am interested to hear some feed back on this and should each property have its own corporation or just one for all properties.

[Ned Carey]

@Rod Lloyd Holding property in some type of entity is generally considered a good idea. However there is a cost to running them as your wife points out.

My understanding is a C Corp is not a good way to title property. Besides double taxation you miss out on some other tax benefits. If you have a large enough operation there may be an advantage to having a C Corp as part of your structure but in general you are better off with an S Corp of LLC. As Tom said you should discuss this with your attorney and CPA

Keep in mind your attorney and CPA may give very different advice becuase they will approach the issue from different perspectives; liability vs taxes.

Good luck - Ned