Which Legal Entity Should I Choose? S-Corp? C-Corp? LLC?
Bernice Hassan, CPA
We Help Real Estate Agents AND Troubled Taxpayers RESOLVE IRS tax problem. We run an ER clinic for people in tax crisis.
I spoke to 3 real estate agents this AM. They 've all asked a common question: "What business entity should I select for my business given the new tax law? Would it be LLC taxed as an S-Corp? Or C-Corp?
Well, it depends on several factors like your revenue, the size of your business and the future goals of your business.
Based on research, 93% of businesses in the US make less than $250,000 in annual sales.
For most of my real estate professionals, an LLC taxed as S-Corporation has worked out great for them. Given the tax break from self-employment taxes and the new QBI deductions.
The best way to determine what is a good fit for your business is to perform an analysis of your business and see what truly makes sense.
PM or comment below if you would like to discuss this further.