There are alot of the same posts about LLC or S-Corp or C-Corp, What do you recomend the best identity is for a person who wishes to make positive cashflow through rentals? I would also like to know what everyone has and what type of real estate investing you do? What are they benefits you like about your identity?
LLC.
Superior asset protection to a corp or LP. Flexible taxation, so you can choose partnerhip or corporate taxation as desired.
I don’t believe there is a “one-size fits all” answer to your question.
Personally, if I were only investing in rental property, I would want to use a business entity that preserves the passive income nature of the rental activity. I would want the entity to also preserve my eligibility for the net passive loss allowance, for capital gains tax treatment, for installment sale tax treatment, and also preserves my ability to participate in 1031 exchanges. For a rental property activity, I believe the LLC (treated as either a partnership or as a sole proprietorship) does this better than the corporation.
Because I don’t need to expense a retirement plan, major health insurance premiums, or a life insurance policy, I do not need to use the corporation as the operating entity for a rental property activity.
Whether you should use a corporation depends upon your needs and also whether your corporation will be doing other active income investing. I am told that a corporation whose only income is from passive income sources is taxed as a personal holding company with higher tax rates than the C-Corp.
These points are just some of the issues to be discussed with your tax advisor, your CPA, your financial planner, and your estate planner before you decide with certainty which business entity is the best fit for your needs and your investment strategy.