What entity should I create?

[Sidney S.]

Hi everyone!

My husband and I are planning on jumping in to the Chicago market and are pursuing fix/flips. We are having trouble deciding which entity(LLC, S-Corp, land trusts, etc.) to create and are looking for advice. Now, we realize that you may/may not be attorneys but maybe if you guys could shed some light on what works for you, that would be fantastic.

Oh, and just to give you some background this will be a first-time flip and we already have an LLC in Georgia for a buy/hold property.

Thanks in advance for any and all advice!

[Brandon Hall]

@Account Closed

For my clients that flip houses, we often try to keep it simple until it's feasible to go the S-Corp route. Start with an LLC and when you expect to earn around $50k net operating income in any given year, that's when you should Be thinking about filing an S election.

That's how you set up S-corps by the way - you either first create an LLC or C-Corp, and then file a form to elect S-Corp status. So you can't go straight to S-Corp if that makes sense.

Hope this helps.