LLC or Individual for tax purpose

[Yan Jin]

Hi Athens and BP family

My wife and I currently own several rental properties in Athens. All of them are under either my name or my wife's name. As such, we are wondering if anyone has experience to share that whether we should get an LLC or other type of corp to put in our properties. Also, we live in Boston area, so if LLC makes more sense, should we set up the LLC in GA or in MA? Thank you in advance!

Sincerely,

Yan

 

[Natalie Kolodij]

An LLC won't offer any tax benefits- it's just for legal protection.

Same with a corp- typically people will utilize an S corp to reduce self employment taxes, but rentals don't pay self employment tax. In 99% of situations an S corp is not a good idea for rentals. 

I would reach out to an attorney to see if an LLC would be a good option for your situation.