Setting up LLC'S. How should wife be involved ?

[Maugno M.]

I just closed on a flip today and spoke to the attorney about setting up an LLC. Ive done several flips now and have rentals so i think its time. They suggested i do two LLC'S so that i have one for my rentals, and one for my flips.
Also, I just got married last month. How would my wife come into the equation now since this has been my business from the start?
I operate here in Texas.

[Costin I.]

@Maugno M. If you just got married, and already think in terms of what's mine and what's hers and who gets what ...you have much bigger problems coming your way. Marriage is an even longer term "investment" than real estate investing and requires constant work. 

Texas is a community state - everything splits in half, unless you have a premarital agreement. So, if you want her (and she wants too) to participate in your family business endeavors, you should add her to the LLC. Otherwise, it doesn't matter, she "owns" you.

You are in Texas, you should look into Texas Series-LLC for the asset holding entity. You should separate the passive side from the active side of your business, meaning that you should have another LLC (and suggesting also a Series-LLC) for your flipping business (you want to separate liabilities if you are doing multiple projects at same time and once you sell a property, you want to leave dormant the child Series-LLC used to acquire and hold that flip).

And if you are doing self property management, you should have a separate operations LLC for all the public interfacing, hiring of contractors, dealing with tenants and leasing, etc. with a property management contract with the asset holding entity. Same idea of separating passive (holding the property only) vs. active (leasing and property management) - not sure if you could have this as one of the child Series-LLC of the flipping Series-LLC or there might be some caveats. Talk with @Scott Smith for specialized advice on how to properly setup this.