Legal Entities when Flipping Houses

[Ezra Henderson]

Hey guys, I have a question that I would appreciate your advice on. So as somebody that is just beginning to get into house flipping, I’m wondering how (and if) I should set up a legal entity. Some people say not to worry about it at first, while others say that you absolutely have to before you start flipping for liability reasons! I understand that there are pros and cons to both, but I’m wondering what I should do in my situation, so I’ll give you a few details:
I’m hoping to get into house flipping full time in the next six months or so… I’m planning on going all in. 
I am probably planning on paying cash, at least at first, until I start getting multiple projects going at once and will need to finance. 
I tend to be the sort of guy that likes to do things the more safe, legal, and systematic way. 

If you think I should form a legal entity before getting more into this, what type would you recommend?

It seems like most people I've talked to recommend a type C corporation that owns individual LLC's for each flip.

I would really appreciate any advice you can give, thanks!

- Ezra

[Teri Feeney Styers]

@Ezra Henderson set up as an S-Corp - with flipping there is no need to form a separate LLC for each property. Be sure to add your flip houses to your umbrella policy (don't have one? get one!) and also carry builder's risk insurance on each flip until it sells.