One LLC, or one for rentals and one for flipping?
I have searched for a while before posing this question, but couldn't find exactly what I was looking for.
I recently put my latest flipping project under contract and have been going back and forth on whether to keep and perform the flip under my current LLC (which has all my rentals) or start a new LLC for flipping. I'd like to hear the pro's and con's from the experienced BP nation on why I should or shouldn't do this. Our business plan is to ramp up the flipping for 2016 to do about 6 next year.
A few things that I have thought about already:
Pros:
Asset protection for my rentals during renovations and immediately after sale of flip.
Separation of rental operations and flipping operations where LLC could get labeled a dealer and put future sales of long-term holds at risk for higher taxes
Cons:
Multiple paperwork, maintenance fees, bank accounts, tax returns, accounting records for having multiple LLC's
I'm interested in the thoughts behind doing one way versus the other.