Question: John Schumer operates three entities that he owns 100% in the Providence, RI area. There are two limited liability companies (LLCs) and one S corporation.

John Schumer operates three entities that he owns 100% in the Providence, RI area. There are two limited liability companies (LLCs) and one S corporation. Each of the LLCs holds rental real estate. LLC 1 holds a six-story, multi-unit building. The minimum tenant stay there are 31 days. And there are mandatory housekeeping serviced provided on a bi-weekly basis. LLC 2 holds a single-family home rented on an annual basis. Both LLC's pay the S corporation a management fee. John is the sole employee of the S corporation, from which he took a full-time salary for managing the two LLCs, where he materially participates. He is an architect. However, all his time spent running the three businesses. He no longer performs architectural services.

In this situation, why does John eliminate S-corporation can less bookkeeping?

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