Setting up an entity for flipping
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!