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Imran Shahzad
  • Investor
3
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13
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S Corporation vs. LLC for house flipping

Imran Shahzad
  • Investor
Posted

Hello everyone,  I am trying to flip 2 houses this year, buying with hard money loan, completely renovating/rebuilding and selling it. 

My question for bigger pocket community is . What entity be best for this purpose, S corporation vs. LLC

Thank you, appreciate everyone

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Joseph Palmiero
  • CPA
  • PA
115
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151
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Joseph Palmiero
  • CPA
  • PA
Replied

The benefit of a S Corporation is that you can reduce self-employment tax on your flipping income. You can form a LLC and elect to be taxed as a S Corporation.

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Palmiero CPA, LLC
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