Your Biggest Expense? Taxes!
Far too many Americans fail to realize that taxes are their biggest expense. In addition, many Americans fail to do adequate â€“ heck, any â€“ tax planning.
For example, did you know that two married couples can each earn $70,000 in a given year but, because of how the money was earned, one couple only gets to keep $55,000 while the other couple gets to keep almost the entire $70,000?
I often get asked: “Is an LLC Preferable to an S Corp for a Real Estate business?”
It depends on your RE strategy. The entity you form should be based on your real estate investing strategy If you are rehabbing, wholesaling or bird dogging you should form an S Corp to help you lower your self- employment tax. It’s not a one size fits all in Real estate.