Investing with an existing business

[Tyler Duzick]

So I own a business in the state of florida set up as an s corp. My question is could I use that structure to invest in rental properties out of state? I dont want to just invest as me personally without structure (liability reasons) really dont want to start a whole separate entity if I dont need to.

[Jake Hottenrott]

@Tyler Duzick - Good morning (where I'm at)! While you COULD technically use your S Corp to invest in passive real estate, it's almost never advised from a tax perspective.  The potential cost of additional taxes from the S Corp structure would likely be much higher than the cost of setting up a new entity.  You may potentially be the exception to every rule, so I'd recommend sitting down with a tax professional and assessing your situation to see what's best for you.