coming out of the woodwork - 2 corporations?

[WITAXLADY]

Owner occupied adult care facility is able to receive non taxable monies. So income taxable - = no tax except for minimum soc security credits and IRA

Now they are opening a second facility soon.

Do they form a S corp to do wages and lessen SE tax,

or a C Corp and rent the building to the operating facility?

1 - Need more money for loans

and 2 - like always, looking to minimize taxes...

Already doing payroll under the LLC - WI, easy to switch over...

Thank you,

D

[Lion EA]

Don't put a building in a corporation.

[WITAXLADY]

correct - that is owned by them personally - although  I think for the $130 initial and $25 each year - I think the building should go into a LLC and then rent it to the operating LLC

But now they have 2 facilities and need to show income for loans

so is a C Corp best or a S corp?

Thank you,

D

[Lion EA]

For the operating company, run the numbers to see if they want to be a S- or C-corp. With the new, lower 21% flat corporate tax rate for C-corps, an S-corp might not save them any money, depending on their personal tax bracket. And, with the new QBID, they might benefit by remaining an LLC or sole proprietorship. A lot of moving parts, so run the numbers.

For the building without personal use, LLC.

[Lee B]

To go over all the pros and cons with a client would take at an absolute minimum 45 minutes.

At this point in the discussion, you should making a list of the pros and cons to discuss with the client.

 

[WITAXLADY]

tHANK YOU -