An S corporation also helps you to avoid the double taxation that you may have with a C corporation. Business is run as usual, and asset protection is in effect if you operate the corporation property. Now, you might be thinking, “Why would I want to transfer property out of an S corp?” There are many reasons why an investor may want to get properties out of an S corporation. This is one of the pitfalls of having rental properties in an S corporation that investors are often unaware of. Hold your fix and flip properties in an S corp, and keep your rentals in LLCs.