Flip Houses: LLC and operating agreement?

[Luca Giani]

Hello,

I am planning to start with the first flip in Southern California. I know the market is not the best for this kind of operation at the moment but if I will find the right deal we are ready to pull the trigger.

I have a pool of investor ready to invest so I have a couple of questions:

1. LLC the best type of company?

2. any referral for the operating agreement (I read some people using legalzoom.com)? or are there templates that are good to start with?

Any advice is more than welcome!

[Owen Dashner]

I would suggest having an attorney advise on structure and draft your business docs, especially if you are going to be using other partners and/or private money. And have a CPA weigh in on the tax portion. You don't want to trip over dollars picking up pennies.

A lot of flippers use LLC's taxed as an S Corp (myself included), but please do not take that as legal advice because I am not an attorney. There are simply too many different possible scenarios based on your legal, tax and business structure needs.

Good luck!