Real Estate Syndication company, which is a better S Corp or LLC

[Gaspare U.]

Balancing the Pros and Cons for a Real Estate Syndication company. I live/work in NJ but will be syndicating deals out of state as well. My NJ accountant says LLC in NJ, Garrett Sutton (www.corpartedirect.com) goes into great detail why use Nevada or Wyoming.

RE Syndicators please tell me what you picked and why.

Thanks!

Gaspare

[Michael Plaks]

@Gaspare U.

There is no S-corp v LLC. LLC is a legal entity that can make an election to be taxed as an S-corp. For syndications, S-corp is almost always the wrong choice, whether it is a "native" S-corp or an LLC taxed as an S-corp. Stay with an LLC or maybe an LP if your attorney recommends an LP.

Which state to form it in is a legal question. Usually syndicators form an LLC in the state where the property is located. Sometimes there're legal reasons to form it elsewhere or have a 2-tier structure. I'm not an attorney, so no advice from me.