Taxes for flipping in LLC vs. personal name?

6 Replies

Is there a difference in the tax consequences for flipping in a single member LLC vs your personal name? Any suggestions as why to do one over the other?

For starters- talk to your tax pro. 


There is no surface value difference. SMLLC has no impact on taxes. 

Should you decide later with your tax pro that an S corp makes sense- that is an election made TO an LLC- so it would apply to income earned in that LLC- but side by side there is no difference.

What I have read is that there is no difference. I was told if your income is going to be over $40,000 to have the LLC switched to an S. Corp to minimize taxes. Definitely talk to your tax person though. Every situation is different.

If you are the sole one in the LLC there should be no difference for taxes. Usually just for liability, but if you don't have an insurance policy for the LLC, there is really no point. You would still be a sole proprietor