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The World According to Steven

These are my own thoughts and opinions.  Don't confuse them with actual fact!

Limitations of using an S-Corp for Real Estate Projects

Although we have had some projects set up as an S-Corp, the LLC structure seems to be more appropriate in most situations for owning real estate. These are some of the limitations with an S-Corp:

  • the entity can have no more than 100 shareholders

  • none of the entity's shareholders can be nonresident aliens—that is, noncitizens who don’t live in the United States

  • the entity has only one class of stock—for example, there can’t be preferred stock giving some shareholders special rights, and

  • none of the entity's shareholders are other corporations or partnerships.

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