Hi, My friend/business partner are going into business together and wondering what the best vehicle to use to form the business. Our plan is to find our first property, flip it, and use the proceeds to flip our next property. I know there are advantages to an LLC but not sure what the primary advantages are. I've also read about an S-corp but unsure if this would be beneficial to us as a partnership. Any suggestions would be helpful. TIA.
Hi, My friend/business partner are going into business together and wondering what the best vehicle to use to form the business. Our plan is to find our first property, flip it, and use the proceeds to flip our next property. I know there are advantages to an LLC but not sure what the primary advantages are. I've also read about an S-corp but unsure if this would be beneficial to us as a partnership. Any suggestions would be helpful. TIA.
You need to discuss entity structure with your accountant and attorney but the first step is to decide exactly what the roles will be for each of you, how you will decide on which property to buy, what contractor to use, who is putting up the money and how much, who will be signing on loans, how the property will be listed for sale, who decides on the realtor etc.