WITAXLADY Posted July 19, 2019 Report Share Posted July 19, 2019 Owner occupied adult care facility is able to receive non taxable monies. So income taxable - = no tax except for minimum soc security credits and IRA Now they are opening a second facility soon. Do they form a S corp to do wages and lessen SE tax, or a C Corp and rent the building to the operating facility? 1 - Need more money for loans and 2 - like always, looking to minimize taxes... Already doing payroll under the LLC - WI, easy to switch over... Thank you, D Quote Link to comment Share on other sites More sharing options...
Lion EA Posted July 19, 2019 Report Share Posted July 19, 2019 Don't put a building in a corporation. 2 Quote Link to comment Share on other sites More sharing options...
WITAXLADY Posted July 22, 2019 Author Report Share Posted July 22, 2019 correct - that is owned by them personally - although I think for the $130 initial and $25 each year - I think the building should go into a LLC and then rent it to the operating LLC But now they have 2 facilities and need to show income for loans so is a C Corp best or a S corp? Thank you, D Quote Link to comment Share on other sites More sharing options...
Lion EA Posted July 22, 2019 Report Share Posted July 22, 2019 For the operating company, run the numbers to see if they want to be a S- or C-corp. With the new, lower 21% flat corporate tax rate for C-corps, an S-corp might not save them any money, depending on their personal tax bracket. And, with the new QBID, they might benefit by remaining an LLC or sole proprietorship. A lot of moving parts, so run the numbers. For the building without personal use, LLC. Quote Link to comment Share on other sites More sharing options...
Lee B Posted July 22, 2019 Report Share Posted July 22, 2019 To go over all the pros and cons with a client would take at an absolute minimum 45 minutes. At this point in the discussion, you should making a list of the pros and cons to discuss with the client. 2 Quote Link to comment Share on other sites More sharing options...
WITAXLADY Posted July 23, 2019 Author Report Share Posted July 23, 2019 tHANK YOU - Quote Link to comment Share on other sites More sharing options...
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