Legal Question in Credit and Debt Law in California

electing to file llc tax as a 'C' CORP. Is this safer for asset protection?

I have been advised by my cpa to file taxes for a single owner LLC as a C CORP. Then, I would elect as a subchapter S, to pass through the losses. This is a real estate holding vehicle. Would this way of filing taxes improve my asset protection strategy ? The idea, is that the asset of the llc is separated from the personal assets. Please advise any thoughts on this concept. Thank you


Asked on 2/26/08, 11:31 am

1 Answer from Attorneys
Carl Starrett Law Offices of Carl H. Starrett II

Re: electing to file llc tax as a 'C' CORP. Is this safer for asset protection?

Double check with your CPA because he or she may have meant to say that you should elect to have your LLC taxed as an S corporation.

Regardless of the tax treatment that you choose for your LLC, this will not have any impact on the personal asset protection. In my opinion, LLCs and corporations are equally good and personal asset protection.

Read more
Answered on 2/26/08, 12:38 pm


Related Questions & Answers

More Credit, Debt and Collections Law questions and answers in California