Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 4 years ago on . Most recent reply

User Stats

69
Posts
28
Votes
Jimmy Suszynski
  • Rental Property Investor
  • Pittsburgh
28
Votes |
69
Posts

Entity structure for flip houses

Jimmy Suszynski
  • Rental Property Investor
  • Pittsburgh
Posted

I've been reading through tons of past articles and I understand the mechanics of this, save one thing.

I created an LLC (A), will tax as an S-Corp, for all of the business activities associated with house flips. My branding and checks and business credit will live here.

I am putting an offer in tomorrow on a property and plan to deed it to a land trust so that I can figure this other stuff out. I've read that it is important to have a bank account for each LLC, but, the money I use to purchase and rehab this property is in the bank account of LLC-A. If I create LLC-B to hold title with LLC-A as its sole member, do I need to create a bank account for that and run all funds through it in order to rehab this house? LLC-B will be a disregarded entity, so everything will flow up to LLC-A and taxed accordingly. If I need to, I can open an online business checking account for the holding LLC-B.

I was told by an attorney that I should create a new LLC for each flip, that way if someone 3-4 years down the road tried to file a claim against it, that LLC would have no assets and likely already have been closed. I didn't think of this question until after the conversation and have been trying like heck to find an answer without posting...

Loading replies...