Tax Classification and New LLC in Downstate Illinois

[Brent Pearman]

Good Morning,

I am currently setting up an LLC as the designated manager (COO). The other members and I have a significant amount of personal assets we want to protect, hence the LLC. The main focus of the business initially will be fix and flip and BRRR in order to increase available assets for future deals. Any recommendations on tax class (S-corp, etc)?

Thanks. 

[Ashish Acharya]

Originally posted by @Brent Pearman:

Good Morning,

I am currently setting up an LLC as the designated manager (COO). The other members and I have a significant amount of personal assets we want to protect, hence the LLC. The main focus of the business initially will be fix and flip and BRRR in order to increase available assets for future deals. Any recommendations on tax class (S-corp, etc)?

Thanks. 

The answer really depends on many other factors. Generally,  If you are expecting to do this regularly, then I suggest keeping these two activities under two LLCs so that you have the possibility of electing an S-crop on one of them if favorable. You don't want both BRRRRs and flips under S-corp.