paying personal cash now instead of waiting for llc/s-corp

[Suzanne HAINER]

Hello!

Finally taking the plunge into the "Flip or Flop" world!  Hopefully, no flops!

My partner and I are in the process of waiting for the paperwork to be processed for our Llc/S-corp that our CPA recommended we set up before we buy anything to rehab. My partner is also waiting for her HELOC money to become available in the next 2 weeks. In the meantime, we have found a great deal on a townhome to flip and I do have personal funds I could buy it with now. My question is: is it too risky to purchase that property without our Llc/S-corp in place? What tax problems will I have such as taxing the profit as personal income? BTW, we live in the Raleigh NC area.

Don't want to miss out on a great deal but I also don't want to have tax issues down the road.  There is soooo much conflicting advice out there that we have had "paralysis by analysis".  Thank you in advance for any and all advice!

[Cameron Skinner]

it will take a couple of weeks to close on it anyway you can make the contract to purchase asignable to the LLC once formed it should not take more than a couple of days to set up LLC, your accountant can probably do the state filings and the businesses you describe you should be able to use a boiler plate multi- member LLC operational agreement and read through it and amend if necessary. Good luck!