Entity Classification of LLC

Im in the process of forming my LLC (long term rentals is the goal) and would like to know if the forming of a “domestic eligiable entity electing to be classified as an assotiation taxable as a corparation” is correct for what im trying to do, Im also going to form a s corp for the purpose of flipping can i form the s corp under the same LLC? :cry:

many times the LLC is a disregarded tax entity. There is a test in the IRS forms to figure this out.

check out www.irs.gov

If you have a single member LLC, it can be treated as a Sole (disregarded), or as a corporation (you also need to elect S if you want to be treated as an S).

If you have an LLC with 2 or more members, then your choices are to be treated as a partnership or corporation.

For holding property you are probably better off not being treated as a corporation.

For flipping it seems experts will suggest an S corp.

Good Luck!