I receive rental income in addition to my wages. What business entity would be the simplest and most convenient entity for a busy individual?
In my experience, always have your accountant answer this question (or a lawyer with an LLM in Taxation). My accountant has uniformly recommended an LLC to hold property, though honestly, I don't know why. THE IMPORTANT concept is that (1) you do have a corporate entity to hold the property; (2) that you work with your tax advisor on how the property is contributed to the entity (often people buy the property under their personal name then later want to place it under the corporate name and this creates issues because the owner never changed title to the company name and often fails to have the lender mortgage company involved. So the owner is often in a mixed up legal situation where they believe they are protected by the corporate shield, and for tax purposes the property is reported as belonging to the corporation, but the title is not in the corporate name and neither is the mortgage. This represents a mess. So make sure you work closely with a good tax attorney, good tax accountant, your mortgage company and make sure the property is properly titled.
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Either an LLC or a subchapter S corporation should work well for you.
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I would be inclined to go with the limited liability company (LLC) suggested by the other attorneys. If you are single and no one else has an interest in the rental property a single member LLC is very simple to administer (no additional tax returns are required) and is probably the best choice, but you should get with a local attorney and get them all the facts so they can help you choose an appropriate ownership structure.
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I agree with the other attorney. Just stay away from owning rental property with a C-Corp.
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An S corporation does not pay federal income taxes, instead passing its income, losses, deductions, and credits through to its shareholders.