Fix and Flip in LLC to build capital without tax?

[Corbett Brasington]

My area is experiences huge amounts of very fast appreciation. So much so that the 1% rule and deep dive analysis for on market deals (even far below asking price) dont make sense to BRRR...but many of them do make sense to fix and flip.

I want to build capital to get into multifamily, my goal is income to have the option to quit my job.

Is there a tax structure that would allow me to fix, flip, and keep the profits in the business of which I just roll into the next property so I can avoid ordinary income tax? 

My understanding of 1031 exchange is that its only relevant on rentals....not fix and flip.

[Will Barnard]

Your best bet is to consult your CPA, getting tax advice from the general public on this site can lead to misinformation. As an example above, LLC's ARE pass through entities, however, they do NOT have "tax protections". Flipping income is treated as ordinary income and taxed at your marginal tax rate. You can not 1031 a flip if flipping was the initial intent.

I use an S Corp to flip however, you can also use an LLC with S Corp tax election to accomplish the same thing. The S corp provides some tax savings as some of the income can avoid self employment tax. When you flip, you have to pay the tax man, so if the intent is to use profits to buy and hold, then flip more for more profits (and more taxes) until you have enough for that buy and hold. Of course that is only one way of thousands.