2nd Home Purchase for Flip vs LLC or Incorporate

[Mark Hann]

Hello All,

New to the site so I apologize if this is a novice question...

Scenario:

• Market = Northern Virginia, United States
• Financial Status = Will own my SFH outright in a few months (mortgage paid off), excellent credit (800+), carry no debit

Question:

Looking to purchase a 2nd home to flip it within 6 months time. Is it better to obtain a mortgage under my name as a 2nd home OR create a corporation \ LLC to purchase the property?

If the flip goes well, I plan to do more which is why I was leaning towards LLC.

2nd Question:

What are the tax differences (if any) on home flip profits?

Example Scenario:

• I purchase a house for 350K
• I fix it up in 6 months time
• I sell the house for 410K

Do I get taxed more on my 60K profit as a personal 2nd home or an LLC (state and federal)?

Thank you in advance for the assistance!