Entity Set Up and Taxation Questions

[Steve Christensen]

I am sure this question has been asked numerous times on here, and I have read many forum posts. However, it seems like many of the answers come down to "what are you personally trying to do / what are your goals?" So, instead of asking should I do x, I'd like to state what I've done and what I'd like to do, with ensuing questions.

I need to set up a business entity. My goal is to have a small portfolio of SFR to multi (no bigger than a quad/4-plex), totaling 10-15 units. At this current time, I do not have any properties. I also wholesale, but so far have only referred a few leads, and have completed one wholesale/flip deal myself. Due to the timing, I did it in my personal name, as I did not have an entity set up. I would like to avoid this asap, hence the entity. I also would like to rehab a few projects a year, but, from my understanding, this shouldn't really change much as it pertains to the short-term wholesaling. As one last curve ball, I am new to working as a licensed agent. My income is solely commission.

Some options I have looked at:

1) setting up multiple LLC's taxed as an S-corp, i.e. 1 LLC for flipping, 1 for rehabbing, 1 for rentals, not to exceed 3 properties per, then setting up a new (so if I had 15 rentals, I would have 5 separate LLC's, with 3 properties in each)

2) setting up a series LLC (I live in and operate in the state of Missouri)

* I do not have a partner, it is just me. I do not have any dependents nor married, if this matters, but I think that is more estate planning

Questions with these 2 options:

Is the s-corp taxation my best option? Is a series LLC better for my goals, or multiple LLC's?

When you are new, you don't know what to ask. From my understanding, having an LLC for every flip/wholesale, rehab, etc = tax return you have to file. I don't know if this is good or bad, but it sounds like a hassle. So, does anyone think it would be best to flip/wholesale in 1 specified LLC, taxed as an S-corp (or recommendations), as well as rehab (since it will be 1 year or less) - and then have another separate LLC, taxed as ___ (I really don't know the best setup for buy/hold long-term investment property) for my rentals? Or, would it be better/easier to have 1 series LLC, with 2 defined series, 1 for the flip/wholesale / rehabs, and 1 for my long-term rentals?

I have seen throughout these forum posts that you should NEVER hold real estate long term in anything taxed as a corporation. Can anyone shed light on what this means?

Also - I would like to buy my rental properties in a Land Trust, and the trustee be the entity. From my understanding, the trustee would have no liability. Does purchasing property in a Land Trust affect ANY of the aforementioned? My goal, or idea with doing this, is two-fold; 1) protection, and 2) if I have 1 LLC for my long-term rentals, I can have each property purchased in a Land Trust, avoiding have an LLC for each property (or 2 or 3 properties in each LLC, still having to file multiple tax returns for each LLC), thus avoiding multiple tax returns.

Any thoughts on my income from working my commissioned real estate transactions with all of this?

I really appreciate any and all feedback!