Hi BP. My partners and I will be fixing and flipping but we're forming an LLC for each project. Should we consult a real estate attorney to draw up the operating agreement or will a general practice lawyer do?
how many flips are you doing a year? How many tax returns are you going to do?
Hi @Juli Woods , I would recommend you seek counsel to determine which way to best structure the projects. Depending on your tax and legal situation, you may be fine with one operating agreement if the parties and splits are the same. If there are multiple people and different structuring, you will likely need separate operating agreements for each entity.
@Dan Barli @Carl Fischer I apologize for the delay in responding. Thanks for your response!
Carl, I don't have a definite number for the number of flips, but hoping for five the first year. I'm not sure about the number of tax returns.
Depending on the amount of entities that you form. You may potentially be required to file a return for each.