deacdiggler
"Well known member"
- Joined
- Mar 28, 2011
- Messages
- 23,982
- Reaction score
- 12,107
Definitely don't put real estate into an s corp - 311 gain of you ever try to get it back out. For a consulting business, S corp is definitely better due to the SE tax issue. Note that the administration has made noise about changing this rule though.
Other things to check on: franchise taxes, legal protection (prob no different). If you ever want to bring in another owner you just new to plan carefully - you can do most anything you need through an s corp with disregarded entities.
One other thought: are you putting any property in? If so, make sure a) fair value exceeds basis or 362(e) can cause a write down of basis; and b) don't contribute any debt in excess of basis or you may trigger 357(c) gain.
Other things to check on: franchise taxes, legal protection (prob no different). If you ever want to bring in another owner you just new to plan carefully - you can do most anything you need through an s corp with disregarded entities.
One other thought: are you putting any property in? If so, make sure a) fair value exceeds basis or 362(e) can cause a write down of basis; and b) don't contribute any debt in excess of basis or you may trigger 357(c) gain.