Being flagged as a 'Dealer' by IRS - for this strategy?
Business entity - one member LLC
Strategy: contract assignment and contract assignment with short-term (one year or less) financing provided by the entity to the end buyer/rehabber.
Are there risks of being flagged as a 'dealer' for using the above strategy?
Perhaps this won;t be an issue if LLC is taxed as a corporation (self-employment taxes will be not applicable) if for this or another reason the LLC is flagged as a dealer?
Thank you for your input!!!