THE LLC AND TAX BENEFITS NELLIE AKALP
he LLC (Limited Liability Company) can play an essential role in protecting your personal assets in
the unfortunate scenario where the property is sued. Other business structures — namely the C
Corporation and S Corporation — do offer the same asset protection benefits. However, the LLC
brings some unique tax advantages that make it the preferred business structure for real estate
investors and builders.
The C Corporation and the problem of double taxation
In the eyes of the IRS, the C Corporation is a separate entity. The Corporation is taxed, and any money paid
out to the owners in the form of a dividend is taxed again on their personal income statements. This is
commonly referred to as “double taxation” and can make owning a corporation very expensive to the small
business owner.