Real Estate Investor · New Orleans, LA · Member since 2016 · 95 posts · 5 votes
Hey guys,
My investing partner and I are getting closer and closer to getting our 1st investment property. At this point we've decided to get a LLC. Is there a "right" or "wrong" entity if we plan on flipping houses and eventually buying some property to hold. I heard on a different forum that a S-Corp or LLC with S-Corp taxing might be the best way to go.
Lender · Los Angeles, CA · Member since 2015 · 800 posts · 229 votes
10y
To the best of my knowledge I do not think there is a better option versus the other. I know in CA if you're going to be a licensed brokerage you cannot be an LLC, but you're just looking to create an entity to flip homes. Both LLCs and S-corps income passes through to the owners, so in a corporations infancy I think they both are viable. BUT... check with a CPA for lawyer.