Setting up a corporation for note investing

[Donald D Michna]

I have been doing research to set up a corporation. I think that an S-Corporation would be the best setup, but I see that no more than 25 percent of the gross corporate income may by derived from passive income. I also see that financial institutions that are banks can not be an S-corp. Being a note investor you are in all reality a bank.

I am not looking at a C-corp obviously due to the double taxation.

I plan to talk to speak with a lawyer about this but wanted to get some feedback from some other note investors out there.