Separate Entities for Holding and Flipping

[Mike D.]

I have a single member LLC that I established to conduct all rental business under. The LLC is a pass through entitiy and I pay taxes on my personal 1040.

Now I am interested in setting up another entity to flip houses with. Ie properties that are fixed and sold with the intent of a profit.

My concern is keeping the flipping business separate from the rental business in the eyes of the IRS. What is the best way to do this? Set up another LLC and/or a corporation?

Also what if my plans change and instead of a flipping a property, I decide to keep it as a long term rental. Do you just transfer the property deed to the rental LLC?