S corp Vs. LLC

[thetaxman2200]

Good afternoon,

I have a simple question - I have a client who wants to buy a building and rent this out. It thinks he should open as and LLC - I was thinking and S-corp - due to the fact he is not leasing back to himself. This gentleman has several businesses. Any thoughts?

Thanks

[outwest]

You're about to get.

multiple responses that say never put real estate in a corporation.

Though a S corp is maybe a little less bad.

[MilTaxEA]

This is a question for a lawyer, but I would tend to lean towards a LLC. If someone accidently blows the S Corp status you are in big trouble trying to dispose of the property. Most C Corporations that I have seen form a LLC to purchase real esatate.

[Gary2]

Not only should it not be in a corporation, but the LLC shouldn't elect corporate treatment.

Use your favorite search engine to look for "never put real estate in a corporation" and "never put real estate in an S-corp", and enjoy your reading.

[kpangelinan]

LLC's are a common form and choice of entity for our small college town apartment owners by our CPA's, EA's and attorneys.