Corporate Structuring

[Beau Miller]

Hi Everyone! This is a tax/legal mix question. I'm curious as to what type of corporate structure(s) BP members are using when working with Private Investors of short term (Less than six months) residential home flips. That is, what type of corporation does your Private Lender use to loan money and what type of corporation do you use to receive and hold (If needed) the funds.

Also, do you receive the private funds directly to your corporate account or does the Private Investor send the funds directly to the closing agent so that there is no comingling of funds? On the other end, after the sale, do you receive the funds from closing and repay the Private Investor or do you name the Private Investor on the HUD/closing docs and have the funds disbursed by the closing agent?

Lastly, I'd image everyone sends a 1099 each year to their Private Lenders?

I have spoken with 3 different CPAs and have received almost, 3 completely different answers to these questions. I will continue to seek out the advise of professionals, but in the meantime, I was hoping for your feedback.

Thanks!

Business structure, Accountant, Private Lending, LLC, Partnership, Flipping, W-2, Dodd, Frank, Florida