Creating a Construction Company when flipping

[Akili Gray]

Is there a benefit for a flipper to create a construction company and have your holding llc pay your construction company llc to pay the contractors?

[Trenton Miller]

Simple answer, no.  Creating a construction company benefits you, clearly because of tax concerns.  It does not benefit anyone else.  

Construction companies serve clients, not themselves.  

Manage your subs as you are and 1099 them.

Owning a construction company brings on a tremendous amount of responsibility.  Bidding, managing personnel, managing material, payroll, customer service, accounting ect.