Updated over 9 years ago on . Most recent reply
Using an existing LLC
Hi everyone,
I am starting my new career in flipping houses. I have my investor in place who will be purchasing the houses and covering the cost of the rehabs. We will then split the profits 50/50. Currently, I am a CEO of my own company that has an LLC. My company has to do with careers/consulting and not real estate. Is it possible to use my existing LLC to cover our purchases / flips? I can set it up to send out a 1099 at year end for both he and I. Do you have to change your LLC to add a DBA if the initial LLC is for a Career focused company? Will I need to add my investor as an officer in my company? Any advice would be very helpful. Thank you.
Most Popular Reply
#1 Personal Finance Contributor
- Rental Property Investor
- East Wenatchee, WA
- 16,138
- Votes |
- 10,267
- Posts
#1 Personal Finance Contributor
- Rental Property Investor
- East Wenatchee, WA
I'm just a laymen investor with a couple entities, but I would not start flipping with your existing consulting business, nor would I let an outside RE partner be a member of it.
@Brandon Hall , CPA just wrote an excellent blog article on structuring partnerships: https://www.biggerpockets.com/renewsblog/flexible-...
I would probably establish a new LLC for this venture with your new partner. Your existing LLC could be a member. Consult competent legal and tax advice always. Good luck @Lisa Johnson!