Questions for CPA - LLC Taxation status for Note Business, Performing and NPN

[Jeff V.]

I will be setting up my LLC in Louisiana, in Jan 2024 and I have a few questions for any CPAs in the group that would be willing to provide some assistance.

1) What is the preferred taxation type for a single member LLC, in which I will be buying Performing notes for passive cashflow, and re-investing a percentage of that cash flow into buying Non-Performing Notes? Taxed as a C Corp, S Corp, or disregarded entity?

I'm aware taxed as C Corp pays taxes at the entity level, but there are some double taxation issues... 

I believe taxed as S Corp, requires member to draw a salary and remaining profit is passed through as a dividend with a preferred tax rate I believe to the personal tax return.  Usually for more active type businesses.

Disregarded Entity, just passes through all profits to the personal tax return on schedule C I think...

So that's, what I think I know, so please advise if I'm off on any of my assumptions.

2) Should those activities, one being more passive and the other being more active, be done in the same entity?  I think the income type will be the same as ordinary income, but not sure.  Please advise if this is generally okay to do or will I run into some tax consequences that I'm not aware of?