Help! Forming LLC taxed as S-Corp

[Alex M.]

In need of some expertise here.  Thanks in advance.

I have 6 rental units in NYC that I airbnb. 

Im also looking to buy a house for airbnb, likely in Tennessee or Georgia with an investing partner.

Question:

1) Should I form 2 separate LLC's?

2) I think I want to be an LLC taxed as an S-Corp to benefit from lower self-employment tax. Do I need to file this before 12/31/2017 to get it in effect for next tax year? Is this even possible this late in the year?

3) I am also looking to get Florida residency for tax purposes. Does this have any effect on where my LLC should be incorporated?

thanks in advance.

Noah

[Jon Holdman]

The general advice is to form your LLC in the state where the properties are located. If you don't, you usually have to register as a foreign entity and the fees are typically the same as if you did it in that state to begin with.

You can use SDIRA funds to buy and rehab a property. If you do that you probably want to set up an IRA-LLC so you have a checkbook. That puts ALL the responsibility for following the rules on you. All money into the property must come from the SDIRA and all returns must go back to the SDIRA. You cannot use the property or do any of the rehab yourself. You definitely want advice from a knowledgeable attorney before going down this road. There are some specific provisions that need to be in your operating agreement. You should not just create an LLC and try to DIY a IRA-LLC. I was advised that managing a rental would be OK, but I'm not sure that would extend to an AirBnB that requires a lot of management. Your IRA may also need to file tax returns and pay taxes on some of the income. Again, get professional advice.