LLC vs. S Corp for buy and hold

[Lance H.]

Hi Everyone,

In searching through the forums I have seen people say regularly that LLC is preferable to an S Corp for passive business income like buy and hold. My question is why?

I ask because I already have an S-Corp and I'm considering moving my rental into it, but being the typical recommendation is LLC I need to figure out if forming an LLC for the rental is a better move. My attorney said that either would protect my interests from liability to a satisfactory degree, and I will of course talk to my accountant when he returns from vacation next week. I'm just trying to gain some knowledge before going into that conversation.

Thanks

Lance H