"Going to an LLC" is different than "going" to S Corp 1120S. S Corp requires payroll, this becomes active and earned income, subject to Social Security and Medicare taxes, unemployment, etc. The real property, loans, other titled, deeded and legal aspects would need to be changed to S corp ownership by name. That's why you see the CPAs on this forum use the "sarcastic font indicator" when discussing the issue of Real Property held by an S Corp. Because now, the people do not own the real estate; they own shares in the S Corp. Are you sure you are asking about 1040 vs 1120S, or 1040 vs 1065?