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Updated over 5 years ago on . Most recent reply
LLC for Fix and Flip Business - Pros and Cons
I'm just getting started in Fixin and Flip. I've contacted a few hard monely lenders to inquire about financing. At least one of them is requiring that I set up a LLC. Is this a typical request? Or, should I just move on to another lender? Are there other reasons it would be a beneficial to set up a LLC?
Thanks for your help!
B.R. Marshall
Most Popular Reply
- Tax Strategist| National Tax Educator| Accepting New Clients
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I typically recommend an LLC for fix and flip
It's active income subject to self employment taxes-down the road it may make sense to operate as an S corp, but an LLC is the first step to that.
Chat with your tax pro but operating as an LLC for now, and having the option to convert to S corp if/when needed is kind of a win win to me
