Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Personal Finance
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 6 years ago on . Most recent reply

User Stats

8
Posts
1
Votes
George Xu
  • Rental Property Investor
  • New Haven, CT
1
Votes |
8
Posts

Best entity to hold properties for high income earners

George Xu
  • Rental Property Investor
  • New Haven, CT
Posted

My wife and I are fortunate to have steady, high-income producing jobs. Our rental real estate portfolio is also starting to produce a decent income. Our properties are currently held in pass-through LLCs which are not tax advantageous for us given our higher tax bracket. I'm thinking we should change ownership of the LLCs to a corporation, which will get taxed at a flat 21%. We don't plan on taking distributions and will re-invest the money earned in additional properties. 

Is forming an S-Corp to hold the LLCs the best approach given our situation? What are the alternative options? The things we care about in priority order are 1) Asset protection 2) Tax savings 3) Ease of maintaining.

Thank you!

Loading replies...