Flipping houses in an LLC owned by my S Corp?
I recently heard of an entity structure being used by another flipper that piqued my interest and I need some BP feedback! The way he put it is that his main company is an S Corp and he creates an LLC for each active flip that is owned by his S Corp. After the project has been completed and sold he dissolves the LLC for that property and repeats the process. What are the advantages of doing this both in taxes and liability? Disadvantages?
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@Hunter Harms I would think a disadvantage would be costs to set up the new LLC's for every flip. I heard an attorney on a podcast talk about something along these lines, saying that until you crossed a certain dollar amount of property value in an LLC, it doesn't make sense to have every property in a separate LLC. I forget exactly what the dollar amount was, I'll try to find it.