Hello community. I'm about to finish my first ever flip in Breckenridge Hill in St Louis. I'm looking for my next flip but also want to jump into a BRRRR.
My question is, should I have the brrrr under a different LLC?
second question, if the answer to the question above is yes. Should I have a mother LLC or corp that owns both?
Hello community. I'm about to finish my first ever flip in Breckenridge Hill in St Louis. I'm looking for my next flip but also want to jump into a BRRRR.
My question is, should I have the brrrr under a different LLC?
second question, if the answer to the question above is yes. Should I have a mother LLC or corp that owns both?
Hey @Tomás Leiva Lèrou, welcome to the BP Forum! I grew up about 10 minutes from BH in STL. I'm sure some attorneys will opine on here, but developers I've dealt with in the past that did both Fix/Flip & BRRRR generally had them under separate LLCs. I even had one client that would create separate LLCs for each Fix/Flip property (called single asset LLCs), but that might be a little overkill for you.
@Jaycee Greene I don't think I need an LLC for every flip. I don't need to protect an asset that I'm selling. However I need it for the BRRRR. Should I also have a mother or holding company abrove these ones?
@Jaycee Greene I don't think I need an LLC for every flip. I don't need to protect an asset that I'm selling. However I need it for the BRRRR. Should I also have a mother or holding company abrove these ones?
@Tomás Leiva Lèrou In the US, we refer to them as "Parent" companies. In the context of an LLC, you personally are the "parent" owner as LLCs are essentially pass thrus in terms of taxes.
I would recommend establishing separate LLCs. Be sure to review your state laws to determine whether entity grouping is permitted—grouping may be allowed, but each LLC would still remain a distinct legal entity.
For ownership structure, you may add a partner or operate as a sole proprietor within the LLC framework; however, I do not recommend using an S corporation for real estate properties. The primary purpose of an LLC in this context is to create a liability shield and help protect your personal assets.