LLC vs. S-Corp vs. Land Trust: Which Entity Structure Is Right for Your Real Estate Portfolio?

Note: This article provides general educational information. Entity structure decisions involve legal and tax considerations specific to your situation — always consult a qualified attorney and CPA.

One of the most common questions real estate investors ask is how to hold their properties. Personal ownership is the default — but as portfolios grow, entity structures offer liability protection, privacy, and potential tax benefits.

Personal Ownership

Simple, with no formation costs or ongoing compliance requirements. Full mortgage access including conventional programs. Personal liability exposure if a tenant or visitor is injured on the property.

LLC (Limited Liability Company)

The most common structure for real estate investors. Provides liability protection separating personal assets from property-related claims. Single-member LLCs are disregarded for tax purposes — income passes through to personal returns. Multi-member LLCs can be structured as partnerships.

DSCR loans and many non-QM products are fully compatible with LLC ownership. Conventional Fannie/Freddie loans generally require personal ownership.

Series LLC

Some states allow series LLCs — a single parent LLC with individual series holding separate properties, with liability separation between them. Available in Delaware, Texas, and a handful of other states. Check availability and recognition in the state where the property is located.

Land Trust

A land trust holds title to real property in the name of a trustee — providing privacy by keeping the owner's name off public records. Does not provide liability protection on its own. Often used in combination with an LLC as the beneficiary.

S-Corp for Real Estate

S-Corps are generally not recommended for holding long-term rental real estate. S-Corps cannot take advantage of the full depreciation deductions available to partnerships and disregarded entities in most circumstances. Better suited for active real estate businesses than passive investment portfolios.

Financing Consideration

Entity choice affects your financing options. If maximizing DSCR loan access and LLC ownership flexibility is a priority — which it should be for growing investors — structure early with that in mind.

At East Coast Mortgage, we help investors structure financing that works with their existing or planned entity setup. Submit your scenario and we will map your options.