Setting up an entity for flipping

[Brandon Morley]

Hey real estate pioneers,

I'm just now starting out with investing and have tons of questions, but for now I'm going to start with one:

My Dad and I are partnering together to start our real estate venture and want to know how we should go about setting up an entity, specifically for flipping properties. I have done quit a bit of research on this and have an idea of how we should do it but I would like to get some input and advice from the peeps at bigger pockets. I'm going to write a little bit of my idea, and you guys can give me your thoughts or how you would do it.

So what i'm thinking is, 

• 1. Open a c-corp in Wyoming (for anonymity, also good for a partnership owning 50/50 as share holders)
• 2. Opening an LLC for each flip in the state that I'm doing the flip (Each LLC owned by Wyoming C-corp)
• 3. Money flows through each LLC into the Wyoming Corp
• 4. Closing each LLC 2-3 months after the rehab and sell of the property (For liability reasons)
• 
  Let me know what you think, Thank you!

[David M.]

@Cody Renner

WY offers pretty much the best in anonymity.

Unless you are partnering with somebody who isn’t your spouse (or going with an advanced strategy of using a C Corp), legal entities don’t provide any tax advantage. They are for asset protection only

go through the posts in bp. It comes up daily about the pros and cons of LLC's