Sole proprietorship or S-corp for wholesaling and flipping houses.

[Joseph Caracappa]

Hello,

I am trying to figure what is a better avenue a Sole proprietorship or S-corp for wholesaling and flipping houses? I live in California and it cost $800 a year to run an S-corp, which is not to much of a concern if it really is a better alternative. Any suggestions would be greatly appreciated!

Thank you for your time.

Sincerely,

Joseph Caracappa

[Douglas J.]

@Joseph Caracappa

First let me state that I am not an attorney and I am not giving legal advice.

From the research I have done, it would be better to go with an scorp or an LLC. These will help protect you from losing your personal property in the unfortunate event that you are sued or the business goes under. With sole proprietor you put yourself in the position to lose everything. Also, there may be tax advantages with incorporating.

The best thing you could do is speak to an attorney about what would be best for what you are wanting to do.

Doug