HELP - Accountant recommending changing LLC to C Corp for Property Management and our Rental Properties
My husband is a property manager for other people's properties. I do not work. We also have 20+ rental homes of our own that he also self-manages. Some of our rentals are in the LLC (majority) and some are in my husband's name that he owned prior to us getting married. Our CPA is recommending we change our LLC to a C Corp because our "gross income is above $100k, which could flag the IRS." He receives over $400k in rent for other peoples properties, which he then takes out expenses, management fees and send the remaining to his clients; however, she is saying because we gross that much money, it will better for us to move the LLC to a C Corp structure and take payroll. Everything I'm learning and reading says putting rentals into a C Corp is a terrible business move. Am I missing something? Does the gross rent he receives for other people count as his gross pay? From what I understand, it doesn't. Any direction or advice is GREATLY appreciated.
Edit: We are located in Texas.