LLC Question

[Mesbahul Hoda]

As real estate investors, we form business entities to take advantage of liability protection and take advantage in tax savings. I have always read that if you are flipping real estate, you should do it in a S Corp and hold rentals in a LLC.

The part where I am getting confused is LLC is already providing some liability protection and you can elect to be taxed as an S Corp and have to deal with less paperwork than forming an LLC. Would it not be simple forming one LLC for your rentals and another LLC for your flipping business and just choose the appropriate tax election?

May be I am missing something or am misinformed.

Thank for your feedback.