Legal Question in Real Estate Law in California
I was instructed by an accountant to create an S corp for my new real estate business in California. She said that because of new laws that that was the way to go. I thought LLC was the way to go?
Asked on 1/21/16, 1:57 pm
1 Answer from Attorneys
Bryan Whipple
Bryan R. R. Whipple, Attorney at Law
There is no one-size-fits-all answer to the question. In a majority of cases, either an LLC or an S-corp. will work about equally. While an LLC may afford a trifle more flexibility, it also comes with a pesky fee charged on gross receipts that can be an (avoidable) burden on businesses with large gross revenues but relatively small operating profit; there's no such tax or fee on S-corporations. Check this Web site: http://www.pahl-mccay.com/the-california-llc-fee.aspx
Answered on 1/21/16, 2:39 pm