Which is better for an LLC a S Corp or C Corp?

[Cynthia Harrison]

Getting everything ready to form my new LLC for my REI company and not sure which is the best way to go for tax purposes. S Corp or C Corp

For now it will be owned and operated by myself but my two sons may join later.

Any advice will be greatly appreciated!

Thank you!

[Eamonn McElroy]

@Cynthia Harrison

You shouldn't let an attorney advise you on tax matters unless they are a tax attorney.  It's advisable to consult both a business attorney and a tax CPA/EA pre-entity formation so you get both sides of the coin.

Generally you should separate wholesaling or flipping activities from rental real estate activities for both legal and tax reasons.  i.e. don't put them in the same entity.

The best way to start out initially might be an LLC taxed as a disregarded entity. The administrative overhead of a corporate tax entity would outweigh any potential benefits if you're starting from nothing.

Best of luck.