LLC

[Thomas Ingles]

I'm just getting started and while I'm still working more than full time, I'm learning everything I can possibly read. That being said, I am trying to get all the ducks in a row so I can hit the ground running. I have a business name and have bought the domain name, I am working on the logo, hopefully a web site soon, but I need to make it legal. I have looked on Legal Zoom to set up an LLC. They seem to be cost effective but I want to know if this is the right way to go, is an LLC what I need? I want to start out with SFH flips and wholesaling and I only want to do this once! Thank you in advance for your advice.

[David Beard]

There is plenty to search on this topic, but yes an LLC makes sense, and for flipping/wholesaling you should look at electing to have it taxed as an S-Corp and doing salary splitting to minimize self employment taxes. Very standard setup.

Of course, protecting yourself involves operating knowledgeably and legally following ethical and sound business practices, then liability insurance ($1mm or preferably $2mm), THEN the LLC as a backstop.