Business Structure

[Jim Rowe]

Hello BP members. I am interested in real estate investing and hope to get some advice regarding the optimal business structure. By optimal, I’d like this structure to provide asset protection and tax savings.

I presently own 1 rental property that is returning solid cash flow in my self-directed Roth IRA. My plan is to flip properties until I develop enough cash to invest in a passive revenue rental property and then repeat.

I hope a few of the seasoned BP pro's could help me understand the best business structure. Do I need separate operating and holding entities? Do I use S-Corp, LLC or LLC-S and/or a combination? Should I have this in place before purchasing my first property? How much should I plan to send on these entities?

I completely understand these are rough numbers and I am only looking for general guidance. Thanks so much for your help.