@jyeh74 wrote:
@Opus 17 for a two member business, why is resource suggested doing a SCorp instead of a LLC? All he said was you get greater tax benefits on SCorp vs LLC for purposes of running a real estate investment company. Don't you pay more taxes in SCorp than LLC? They are W2 works and have the investment company also. Does SCorp split up the income so its not aggregated, thus saving taxes compared to the LLC which adds income up from W2 and rental income?
I can't advise you on the difference between a 2-member LLC and an S-corp. There are many factors and I am not an expert.
However, as a 2-member LLC, you must be filing a form 1065 partnership tax return OR a form 1120 corporate return (if you elect to file as an S-corp). You can't file a 2-member LLC on a schedule C for each member (unless the members are spouses in a community property state).
If you are a multi-member LLC, I think for various reasons it is better for the business to own the vehicle, or for the member to use a personal vehicle and get reimbursed using one of the methods in publication 463, chapter 4. I would not recommend that the member own the vehicle and claim it was used 100% for business. That's likely to get audited. If the member owns the vehicle, they need to track mileage and expenses per the rules in publication 463. (Even if the vehicle is mostly used for business, you will need to have the mileage logs and other records.)
