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Question

Should I structure my real estate business as an LLC or S Corporation?

Answer

Start with an LLC for simplicity and legal protection, then consider electing S Corp taxation once your net income consistently exceeds $60,000-$80,000 annually. S Corp status lets you pay yourself a “reasonable salary” (subject to self-employment tax) while taking the rest as dividends (not subject to self-employment tax) but requires payroll setup and additional filings.

Related FAQs

Should I invest in rental properties to build wealth beyond commissions?

Where can I track all my business expenses for tax write-offs?

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Tax Planning Professions Small Business Young Professionals Retirement Planning Business Owners Tax Basics Women Business Owners FAQs
Last Updated May 20, 2026
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