Best entity to formulate for a Flip

[Imran Shahzad]

Hello everyone, I just bought a ranch in LI and the plan is complete renovation by architecture plan/2nd floor etc.  I teamed up with a GC where I will buy the house/ paid 25 % down with 75 % loan . GC will do all the work including pulling permits/material/doing work etc. and we will calculate the cost of the project.   from my part : down-payments/+ holding costs and GC will include the cost of building it.  We list it in the market and will split the profit after paying off the bank. I leverage my credit and he leverage his expertise. 

I closed yesterday, only my name is on property and plan is to draw an agreement among ourselves before starting work.

My question to the bigger pocket community is how should I go about it. Can we open a corporation with property name to limit our taxes etc when we do sell eventually and I do understand, I probably should have bought to an LLC but again that way, bank probability would not have given me the loan.

Or if someone knows a person who can help draw that agreement/ + guide me regarding corporation setup etc. or have an idea how can we go about doing this project, I will appreciate it. 

Thank you 

[Anthony Dooley]

There are no tax advantages to holding the property in an LLC or your name. It's the same. It's a flip, right? So you won't own this long enough for it to matter and since there are no tenants in your project, liability shouldn't be an issue. Forming a corporation may be something to consider if you are doing 20 flips per year or more, but for one flip it's not worth the hassle. You are overthinking this. Most flips are done by mom and pop DIYers that spend zero dollars on legal entities and complicated tax structures.