Entity Selection & Structuring
The right structure saves taxes and protects your assets. The wrong one complicates your life and leaves you exposed.
One of the most heavily marketed topics online is structuring. People love selling complex combinations of LLCs, Series LLCs, Wyoming Holding Companies, and S-Corps. The reality? Over-structuring causes administrative nightmares, expensive annual state fees, and brutal accounting bills. We engineer clean, tax-efficient frameworks rooted in actual law, not internet hype.
Structuring For Real Estate
​
-
Single-Member LLCs: From a federal tax standpoint, LLCs for rental properties are usually "disregarded" entities. The income flows to your personal return, but the LLC limits your legal liability.
-
Partnerships & Multi-Member LLCs: Bringing in an outside partner? You've crossed into partnership taxation (Form 1065). We ensure proper tracking of capital accounts, and guide cleanly splitting depreciation.
-
State Considerations (Like California): Forming an out-of-state LLC (Wyoming, Delaware) won't save you if you live in California or the property is there. We help you balance the $800 CA franchise tax rules without creating a multi-state reporting mess unnecessarily.
-
Never put real estate in an S-Corp or C-Corp: Doing so causes a taxable event later if you ever transfer the property out. We will show you exactly how to hold the deed.
Structuring For Operating Businesses
When you run an active business (Realtor, flipper, consultant, marketing agency) making serious profit, an S-Corp comes into play to tackle the 15.3% Self-Employment (SE) tax. We handle:
-
S-Corp Election Review: Calculating if an S-Election justifies the extra payroll tax filing and corporate return cost.
-
Reasonable Compensation: Finding the absolute legal minimum you can pay yourself on W-2 to reduce SE tax while taking the rest as owner distributions.